President Donald Trump has signed into law a $9 billion rescission package, which revokes nearly $8 billion in funding for foreign aid and nearly $1 billion for public broadcasting. The legislation, which passed both chambers of Congress earlier in the month, represents a significant legislative achievement for the Trump administration, especially following the recent signing of the ‘big, beautiful bill’ on domestic and tax policy. The rescission targets the U.S. Agency for International Development (USAID), which provides aid to impoverished countries and offers development assistance, and the Corporation for Public Broadcasting (CPB), which supports public broadcasting in the U.S.
Although the cuts are a minor fraction of the current national debt—$36.7 trillion—the Senate approved the measure narrowly, with notable bipartisan opposition. Critics, including Democrats, argue that the cuts pose risks to national security and could jeopardize other programs. This marks the first time Congress has approved a rescissions package since 1999.
Democrats have expressed concerns that the cuts to foreign aid are a win for China and Russia, and that the package could put national security at risk. Additionally, they argue that Republicans’ use of rescissions sets a dangerous precedent that could jeopardize a host of programs down the line. Senate Minority Leader Chuck Schumer, D-N.Y., said on July 15 on the Senate floor, ‘If Republicans slash more American aid, it will create a dangerous vacuum that the Chinese Communist Party will continue to eagerly fill. They are using pocket rescissions to poison the bipartisan appropriations process, to break the law to steal funds that Congress appropriated, and they’re doing it at a party-line vote. Worse, they’re letting Donald Trump decide for himself which programs to defund, and that puts everything at risk – healthcare, education, food assistance, public health. Everything – everything – becomes at risk. That is what happens if a package like this is allowed to become law.’
While the Trump administration has faced challenges with USAID, which has been absorbed into the State Department due to concerns about its effectiveness in advancing U.S. interests, the decision to cut funding reflects a broader political strategy. The House previously approved its version of the rescission package in June, and the final version passed after the Senate approved it narrowly by a 51-48 margin on July 17. Republican Sens. Susan Collins of Maine and Lisa Murkowski of Alaska joined Democrats in opposing the package. Senate Majority Leader John Thune, R-S.D., stated, ‘I appreciate all the work the administration has done in identifying wasteful spending. And now it’s time for the Senate to do its part to cut some of that waste out of the budget. It’s a small but important step toward fiscal sanity that we all should be able to agree is long overdue.’
The package also draws criticism for its impact on the Corporation for Public Broadcasting (CPB), which funds entities like NPR and PBS. While the cuts are financially insignificant in the broader context of the national debt, the move has drawn strong reactions from critics who argue that it undermines the role of public broadcasting in informing the American public. This is not the first attempt by Trump to cut foreign aid; he previously proposed a similar measure in 2018, which failed to gain enough Senate support. The current bill represents a significant shift in policy and has the potential to affect international relations and domestic programs.