Seven States Sue Trump Over $810 Million Pocket Rescission of Refugee Funds

California, led by Attorney General Rob Bonta, and six other states -- Maine, Maryland, Michigan, Nevada, New Mexico and Oregon -- sued the Trump administration on September 30, 2026, over a $810 million "pocket rescission" the president sent to Congress on September 25, timed so the funding would lapse before lawmakers could act. The largest share, $567.4 million, comes from HHS refugee and asylee assistance programs, with the remainder spread across DHS, Education, Justice, Treasury, HUD and other agency accounts. The states argue the maneuver violates the Constitution's separation-of-powers, appropriations and presentment clauses and the Administrative Procedure Act; the Government Accountability Office has separately concluded pocket rescissions of this kind are not permitted under the Impoundment Control Act of 1974.

"Just because the President doesn't like a program doesn't mean he can defund it," Bonta said. The White House has described the targeted spending as wasteful. The suit, filed in the Northern District of California, remains pending and does not itself restore the canceled funding.