
The Trump administration is sitting on a staggering $410 billion in federal funds that Congress already approved, according to a new report from top Democrats. They’re accusing the White House of using controversial and illegal tactics to block spending on everything from disaster relief to medical research. With a government shutdown deadline looming on September 30, Democrats are sounding the alarm: if this money isn’t released soon, billions of dollars could simply vanish for good.
So, what kind of funding is being held back? The report details some shocking figures. A massive $96.7 billion in FEMA disaster relief grants is in limbo, leaving communities recovering from hurricanes and wildfires without the critical aid they were promised. On top of that, $8.9 billion for the National Institutes of Health—earmarked for vital research into Alzheimer’s, cancer, and women’s health—has been canceled. The Government Accountability Office has already ruled that move illegal. Another $33 million for coastal protection projects is also frozen and will expire at the end of the month if the White House doesn’t act.
The White House is pushing back hard. The Office of Management and Budget (OMB) blasted the report, calling it a “fake tracker” with “no basis in reality.” While the administration hasn’t offered specific numbers to refute the claims, it argues that these pauses are part of a “programmatic review.” Their stated goal is to ensure federal dollars align with Trump administration priorities, which includes reviewing any grants related to diversity programs or climate change initiatives.
The conflict has intensified over a controversial tactic known as a “pocket rescission.” On August 28, President Trump declared he wouldn’t spend $4.9 billion in foreign aid, proposing to cancel it so close to the end of the fiscal year that Congress has no time to stop him. Both the non-partisan Government Accountability Office and some Republican senators have labeled this move illegal. Now, the administration is asking the Supreme Court for an emergency order to keep the aid frozen, escalating the legal showdown.
This isn’t just another partisan fight. The White House’s tactics have drawn fire from both sides of the aisle. The Republican Chair of the Senate Appropriations Committee, Susan Collins, bluntly called the pocket rescission “illegal.” She and other Republicans have joined Democrats in warning that these moves are a direct assault on Congress’s constitutional “power of the purse.”
According to the Government Accountability Office (GAO), this is part of a wider pattern. The federal watchdog has repeatedly ruled this year that the Trump administration broke the law with similar funding freezes affecting everything from Head Start education programs to school grants. The GAO also criticized the White House for removing key budget data from public websites and ignoring requests for information.
All of this is coming to a head as Congress rushes to meet the September 30 funding deadline. Democrats are digging in their heels, warning they won’t pass a budget to avoid a government shutdown unless they get guarantees that the administration will release the money Congress approved. This high-stakes showdown is no longer just about dollars and cents—it’s become a fundamental battle over who really controls the nation’s spending.