Trump Administration Announces Plans to Cancel Nearly $1 Billion in Spending Approved by Congress, Including $56 Million for Housing Counseling
Oct 02, 2026
The House of Representatives adjourned for recess on September 16, with lawmakers returning to their home districts to campaign ahead of November’s midterm elections. The Senate is scheduled to remain in session this week before heading home for its October recess. October will be an important time for advocates to weigh in with their federal lawmakers on priorities and lay out the groundwork for the work Congress will do after the elections and before the current congressional session ends.
The Trump administration announced plans on September 25 to illegally claw back $810 million in funding for housing, health, education, and other programs, including $56 million of the $58 million appropriated in fiscal year (FY) 2025 for housing counseling programs. The so-called “pocket rescission” cancels money Congress has already appropriated. The administration announced the move just a few days before the end of the fiscal year, leaving little time for lawmakers to respond before the new fiscal year begins on October 1.
Top appropriators of both parties denounced the move and accused the administration of acting illegally by intentionally withholding and then canceling funds without congressional approval.
“This move shows that [the Office of Management and Budget] intentionally withheld these funds for months to execute this unlawful cancellation of appropriations that were approved on a bipartisan basis and signed into law,” stated Senator Susan Collins (R-ME), chair of the Senate Appropriations Committee. She added that the Government Accountability Office has determined that pocket rescissions are illegal.
The cancellation of funds threatens to escalate tensions over spending after the midterm elections.
For more information on the impact of this claw back on the funding for affordable housing programs and resources, please read Memo to Members & Partners, 9/28.
Visit NLIHC’s Advocacy Hub for more information and resources that can help you take action and help protect the affordable housing programs people rely on.