POTUS Proposes $810M Cuts to Shrink Fed Deficit
Published Date: 9/30/2026
Notice
Summary
The President has proposed cutting $810 million from budgets across several government departments, including Commerce, Education, Health, Homeland Security, Housing, Justice, and International Aid. These cuts aim to reduce federal spending and borrowing, helping shrink the national deficit. Congress received these proposals on September 25, 2026, and will decide whether to approve the savings.
Analyzed Economic Effects
12 provisions identified: 1 benefits, 10 costs, 1 mixed.
Refugee and Entrant funds cut $567M
The proposal would rescind $567,401,904 of the $6.3 billion appropriated in FY 2024 for the Refugee and Entrant Assistance account (Office of Refugee Resettlement). The rescission was transmitted to Congress on September 25, 2026 and would remove those funds from the account if enacted.
President proposes $810M budget cuts
The President transmitted rescission proposals to Congress on September 25, 2026, that would rescind $810,000,000 in budget authority across multiple departments. If enacted, these rescissions would reduce federal outlays by $810 million and would, the notice states, reduce Federal borrowing and affect the national budget deficit.
International education programs cut $69.6M
The proposal would rescind $69,588,896 of the $70.3 million appropriated in FY 2026 for International Education and Foreign Language, Domestic Programs. The rescission would remove nearly all FY2026 funding for these Domestic Programs if approved by Congress.
Housing Counseling funding cut $56.1M
The proposal would rescind $56,100,000 of the $58 million appropriated in FY 2025 for Housing Counseling Assistance. If enacted, this would remove most FY2025 funding for grants that provide counseling and education on housing matters.
FEMA Alternatives-to-Detention cut $15M
The proposal would rescind $15,000,000 appropriated in FY 2025 for the FEMA Alternatives to Detention—Case Management Pilot Program (ATD-CMPP). The notice states this would eliminate that FY2025 appropriation if Congress approves the rescission.
USCIS Citizenship grants cut $10M
The proposal would rescind $10,000,000 appropriated in FY 2025 for the U.S. Citizenship and Immigration Services Citizenship and Integration grant program. The notice says DHS had already paused and cancelled prior awards, and this would remove the FY2025 appropriation if enacted.
Migrant student grants cut $24.9M
The proposal would rescind $24,907,509 of the $52 million appropriated in FY 2026 for competitive grants within Special Programs for Migrant Students. This rescission was transmitted on September 25, 2026 and would remove that portion of FY2026 funding if approved by Congress.
Community Relations Service cut $15M
The proposal would rescind $15,000,000 of the $20 million appropriated in FY 2026 for the Department of Justice Community Relations Service (CRS). The notice states CRS had been eliminated earlier in the Administration and that statutory functions were transferred to U.S. Attorneys.
Tropical forest/coral reef aid cut $8.7M
The proposal would rescind $8,704,713 of the $20 million appropriated in FY 2023 for the Treasury Department's Tropical Forest and Coral Reef Conservation Act (TFCCA) debt restructuring program. The rescission would remove these funds from the TFCCA account if Congress approves it.
Minority Business grants cut $10M
The proposal would rescind $10,000,000 of the $50 million appropriated in FY 2026 for the Minority Business Development Agency (MBDA) programs. If enacted, that FY2026 funding for MBDA grants would be removed.
AHRQ research funding cut $27.7M
The proposal would rescind $27,700,000 of the $345 million appropriated in FY 2026 for the Agency for Healthcare Research and Quality (AHRQ). The rescission would remove that portion of FY2026 funding for AHRQ research and statistical functions if enacted.
Office of Minority Health funds cut $5.1M
The proposal would rescind $5,098,000 of the $625 million appropriated in FY 2026 for General Departmental Management at HHS, an amount that the notice indicates was tied to the Office of Minority Health (OMH). The rescission would remove that portion of FY2026 funding if Congress approves it.
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