Washington, D.C. — With the fiscal year deadline just days away, mounting concerns are emerging on Capitol Hill and across the country over what critics describe as “hidden” or “backdoor” budget cuts by the Trump administration.
According to watchdog groups and congressional sources, billions of dollars in already-approved federal funding are being withheld, delayed, or rescinded, raising alarms about potential violations of congressional spending authority. The administration has defended the moves as “fiscal responsibility,” but opponents call it a dangerous overreach.
Billions at Risk in Health, Education, and Social Programs
New reports indicate that as much as $8 billion earmarked for health, education, and social initiatives could go undistributed. The nonpartisan group Protect Democracy says the administration has “obligated” roughly $26 billion less than expected this year, leaving states and communities scrambling to maintain critical services.
Programs most affected include student aid, public health grants for mental illness and substance abuse, and even funding for weather services and climate research. Local governments warn that delays are already straining budgets and disrupting planning.
Legal and Constitutional Questions
At the center of the debate is the Impoundment Control Act of 1974, which restricts presidents from withholding funds once Congress has approved them. Critics argue that by using budgetary footnotes and Office of Management and Budget apportionments, the White House is sidestepping those legal limits.
Earlier this summer, the administration requested a formal rescission package totaling $9.4 billion. Congress approved portions of it through the Rescissions Act of 2025, cutting billions from foreign aid and public broadcasting. But watchdogs say that beyond those official reductions, “silent” freezes are quietly reshaping the federal budget.
The Supreme Court has also entered the fray, recently siding with the administration to allow a freeze of more than $4 billion in foreign aid. That ruling, opponents argue, could embolden further executive moves.
Programs on the Chopping Block
The ripple effects extend across several key sectors:
- Health & Public Health: Delayed grants for states battling substance abuse and mental illness.
- Education: Disruptions in federal student aid, hitting low-income students hardest.
- Science & Climate: Shutdown of climate adaptation centers and reduced weather forecasting capacity at NOAA.
- Foreign Aid & Public Media: Billions rescinded from international health and diplomacy programs, along with cuts to PBS and NPR.
- Medicare: Advocates warn that automatic budget triggers, known as PAYGO, could strip away $45 billion from Medicare next year unless Congress intervenes.
Political and Public Backlash
The cuts have sparked bipartisan unease. Republican Senator Susan Collins has publicly urged the administration to release withheld funds, while Democrats accuse the White House of deliberately starving federal programs.
House Judiciary Democrats have opened inquiries into whether the withholding violates federal law, and advocacy groups are preparing legal challenges. State attorneys general are also weighing lawsuits, particularly over public health and education funding.
“This isn’t fiscal responsibility,” one Democratic lawmaker said Sunday. “It’s governing by stealth undermining Congress and shortchanging the American people.”
Meanwhile, the looming risk of a government shutdown only intensifies the stakes. By restricting funds now, the administration could gain leverage in upcoming budget negotiations, leaving lawmakers scrambling for a path forward.
Uncertain Future
For now, the scope of the cuts remains murky. Federal agencies are under instructions to prepare contingency plans, including possible layoffs. Communities dependent on federal dollars are left guessing whether funding will arrive.
What’s clear, experts say, is that the outcome will test the balance of power between Congress and the presidency and determine whether this administration has succeeded in rewriting the rules of the budget game.
