September 30 marked the end of the fiscal year. With it came the deadline to spend billions of dollars in congressionally appropriated funding for foreign assistance programs, including global health, economic development, peacebuilding, and support for United Nations agencies. While much of these funds were spent before expiration, a last-minute flurry of spending leaves questions about where the money ended up and why spending was held off until the deadline. Congress needs to ensure future foreign aid dollars are spent responsibly and effectively.
The Power of the Purse
Every year, Congress passes 12 appropriations bills that determine how much funding federal agencies receive and how they should spend it. The executive branch is then required to spend the money as Congress intended within set timeframes. This process is rooted in Article I, Section 9 of the Constitution which states: “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.” However, if funds are not spent by the established deadlines, the funds expire and cannot be used as intended, and the executive branch violates the Impoundment Control Act (P.L. 93-344).
The State Department rushed to spend $4 billion in expiring aid, leaving a murky picture of where the money was spent and which entities received it.
The federal spending process broke down this year, particularly for vital foreign assistance funding. In the last week of the fiscal year, the State Department rushed to spend $4 billion in expiring aid, leaving a murky picture of where the money was spent and which entities received it. Much of the funding was distributed through extremely large grants, which thwarts efforts to localize foreign aid and empower community organizations closest to the specific challenges. Best practice calls for funding to be disbursed at regular intervals where staff can make careful decisions about how and where to spend funds rather than having to make these major decisions all at once and under pressure.
Delayed spending was not the only problem this fiscal year. According to court filings and separate letters from Senators Brian Schatz (HI) and Patty Murray (WA) and Senator Susan Collins (ME), $2.5 billion in global health and development assistance was used for administrative costs to shutter USAID instead of countering the recent Ebola outbreak, providing vaccines, and supporting maternal and child health. In addition, $725 million in emergency non-military funding for Ukraine, $3 million for possible anti-personnel landmine clearance and nearly $2 million for human rights and democracy provided by Congress was allowed to expire.
These actions by the Trump administration hurt vulnerable communities and undermine Congress’ power of the purse, shaking the very foundations of our democracy.
Pocket Rescissions
Beyond delaying and redirecting funds, the administration also cancelled millions of congressionally appropriated funds in a move known as a “pocket rescission.” Following a July 2025 rescissions package that cancelled billions in congressionally appropriated refugee and displaced-population assistance, the Trump administration once again rescinded funds for vulnerable immigrants in late September 2026. This did not give Congress ample time to review and vote on the package before the end of the fiscal year, causing the funds to expire and drawing sharp criticism from both parties.
This ignoring of congressional authority will leave refugees without aid as they rebuild their lives and subject more immigrants to family separation and prolonged detention.
The President’s pocket rescission for this past fiscal year included over $567 million from the Refugee and Entrant Assistance account, which supports recently resettled refugees, and $15 million from case management programs for asylum seekers awaiting court proceedings from safely within their communities instead of detention centers. Such sums of money are hard to conceptualize, but the harm is clear. This ignoring of congressional authority will leave refugees without aid as they rebuild their lives and subject more immigrants to family separation and prolonged detention.
A Moment for Bipartisan Leadership
Congress has an opportunity to lead so there is not a further breakdown in the federal spending process. Protecting constitutional authorities and ensuring taxpayer dollars are spent responsibly and effectively should unite leaders across parties.
Right now, the federal government is under a short-term stopgap funding agreement. As Congress debates the final appropriations bills for FY27, it must enact the necessary guardrails to ensure future foreign assistance funds are spent as intended and with best practices. This can be achieved, for example, by increasing congressional oversight and strengthening congressional notification requirements for the use of funds, requiring spending plans, mandating timely and accurate public reporting through tools such as foreignassistance.gov, and ending pocket recissions.
Congress must act to prevent harm to vulnerable communities and to protect our democracy. Through a commitment to our democracy and love for our neighbors, Congress can help achieve the world we seek.
