Trump Axed $810 Million: The Legal Battle Behind 11 Federal Budget Cuts Targeting Illegal Immigrants and DEI

The largest single portion of the rescission involves the Health and Human Services Department. The administration is eliminating $567 million that was allocated for social services to illegal immigrants. This funding was provided through grants to non-governmental organizations. Officials argue that the funds are no longer necessary due to a reported near-elimination of illegal border crossings over the past year. The decision comes as the administration seeks to wind down programs associated with the management of the border crisis.

Funding for foreign academics and students in the United States faces a significant reduction of $70 million. Specific concerns were raised regarding certain grants flowing to transgender-focused projects. The administration has also targeted a Department of Housing and Urban Development program worth $56 million. This funding supported outside organizations providing housing counseling and was alleged to have fueled "DEI-centric" agendas. Groups such as UnidosUS and the National Urban League are noted recipients of these funds.

Further cuts include $25 million from a Department of Education migrant students initiative. This funding was directed at organizations that were alleged to encourage participants to avoid law enforcement contact. Additionally, the Justice Department is losing $15 million from its Community Relations Services. This office is described as an entity focused on race relations that is largely considered shuttered. Another $15 million is being withdrawn from a Department of Homeland Security program. This program subsidized cultural orientation, healthcare, and legal advice for illegal immigrants and asylum seekers.

The rescission also addresses what officials describe as wasteful spending. A sum of $28 million is being withdrawn from Health and Human Services grants deemed to be wasteful, duplicative, and sometimes "harmful and blatantly ideological." Smaller allocations are also being zeroed out. These include $10 million for the Minority Business Development Agency, which makes grants to business owners based on their race. Another $10 million is removed from a DHS program funding legal services for illegal immigrants. Finally, $5 million is cut from the HHS Office of Minority Health.

The Department of Treasury is also seeing changes with a $9 million cut to the Tropical Forest and Coral Reef Conservation Act Program. This program offered debt forgiveness to countries for actions intended to curb climate change. The use of pocket rescissions is a tool that has not been used with this frequency since the late 1970s. Trump utilized this power last year to request congressional Republicans end federal funding for NPR and PBS and to gut USAID programs. Congress approved those actions.

The legal standing of pocket rescissions is a subject of ongoing debate. The legislative Government Accountability Office has deemed the practice illegal. However, the administration maintains a different view. OMB Director Russ Vought and General Counsel Mark Paoletta have pointed to historical precedents set by Presidents Gerald Ford and Jimmy Carter in the 1970s. The administration suggests these historical actions support their current legal interpretation.

Trump last year rescinded nearly $5 billion in foreign aid in the first pocket rescission since 1977. This move drew outrage from congressional Democrats and sparked a court battle. The administration prevailed in a 6 to 3 ruling from the Supreme Court last September. The Court allowed the rescission to proceed on the grounds that the president’s prerogative to conduct foreign affairs was more important than alleged procedural issues. The latest action could test and potentially expand the parameters of this established precedent.

First reported by r/Conservative.