Trump slashes $5 billion in Foreign Aid with historic power move

By Kazeem Ugbodaga

U.S. Secretary of State Marco Rubio has applauded President Donald Trump’s decision to invoke the Impoundment Control Act (ICA) to cancel $5 billion in foreign aid and international organisation funding, a move he described as a major step toward saving taxpayers billions of dollars.

In a press statement released on Friday, Rubio said the President’s action marked the first use of a “pocket rescission” under the ICA in half a century.

The measure allows the executive to withhold funds appropriated by Congress if they are deemed inconsistent with national priorities.

According to the statement, the rescission order targets funding streams the administration considers outside U.S. interests, including $2.7 million for “inclusive democracy” programmes in South Africa, $4 million for global LGBTQI+ awareness initiatives, and contributions to the Global Labour Programme.

“Since taking office, President Trump has been steadfast in eliminating fraud, waste, and abuse across government spending. By deploying the ICA, he is ensuring that every dollar serves the American people, not foreign interests,” Rubio noted.

The decision is expected to spark sharp debate in Washington. While supporters hail it as a reaffirmation of the administration’s “America First” economic policy, critics argue it undermines U.S. global leadership and sidelines programmes that promote human rights and democratic values abroad.

The Impoundment Control Act, passed in 1974 to curb presidential power after the Nixon era, has rarely been invoked.

Trump’s move signals a more aggressive interpretation of executive authority in shaping foreign policy spending.

With the cancellation, the administration insists taxpayers will be shielded from financing programmes it views as wasteful, while opponents warn it could strain relations with allies and international partners.