Congress
White House floats a new funding trick — and GOP lawmakers grimace
Russ Vought’s relationship with Republican appropriators was already strained. Then he started talking about pursuing the ultimate end-run around their funding power heading into the fall.
The White House budget director has been persistently touting the virtues of “pocket rescissions,” a tactic he has floated as a way to codify the spending cuts Elon Musk made while atop his Department of Government Efficiency initiative, and which the federal government’s top watchdog says is illegal.
On Capitol Hill, leading GOP appropriators see Vought’s comments as another shot against them in an escalating battle with the Trump administration over Congress’ “power of the purse.” And they warn that the budget director’s adversarial posture hinders their relationship with the White House as they work to head off a government shutdown in just over three months.
“Pocket rescissions are illegal, in my judgment,” Senate Appropriations Committee Chair Susan Collins (R-Maine) said in a brief interview this week, “and contradict the will of Congress and the constitutional authority of Congress to appropriate funds.”
To hear Vought tell it, a “pocket rescission” is a legitimate tool at the executive branch’s disposal. In such a scenario, President Donald Trump would issue a formal request to claw back funding, similar to the $9.4 billion package he sent lawmakers this month to cancel congressionally approved funding for public broadcasting and foreign aid.
But in this case, the memo would land on Capitol Hill less than 45 days before the new fiscal year is set to begin Oct. 1. By withholding the cash for that full timeframe — regardless of action by Congress — the White House would treat the funding as expired when the current fiscal year ends on Sept. 30.
The dizzying ploy is another means toward the same goal Trump has been chasing since Inauguration Day: to spend less money than Congress has explicitly mandated in law. But the Government Accountability Office says the maneuver is unlawful, and the GOP lawmakers in charge of divvying up federal funding are wary that Vought is now talking about it in the open.
“I understand we want to use all the arrows in our quiver, and he wants to use all his,” Rep. David Joyce (R-Ohio), a senior member of the House Appropriations Committee, said of Vought in an interview. “But every time you pull out an arrow, you have to be ready for the consequences, right?”
Joyce continued: “It’s going to change the course of conversations and how each side works toward coming to resolution going forward.”
Vought declined last week to elaborate on his intentions, when pressed in person on Capitol Hill about his plans to use the ploy in the coming months. His office also did not return a request for comment. However, the budget director laid out a detailed argument for the maneuver on television earlier in the month — then mentioned it again as he left a meeting with Speaker Mike Johnson and then during a later hearing with House appropriators.
“The very Impoundment Control Act itself allows for a procedure called pocket rescissions, later in the year, to be able to bank some of these savings, without the bill actually being passed,” Vought said on BLN. “It’s a provision that has been rarely used. But it is there. And we intend to use all of these tools.”
Rep. Mike Simpson of Idaho, who chairs the appropriations panel that funds the Interior Department and the EPA, recently warned that the gambit is “a bad idea” that “undermines Congress’ authority,” after saying last month that he thinks “it’s illegal” for a president to withhold funding lawmakers approved.
But many top Republican appropriators — while scoffing at Vought’s comments — aren’t willing to engage in rhetorical arguments about the bounds of the president’s spending power.
“Talking is one thing. We’ll see if he actually does it,” Rep. Ken Calvert (R-Calif.), who chairs the appropriations panel that funds the military, said about Vought’s comments.
“He’s got his ideas,” said Rep. Steve Womack (R-Ark.), chair of the appropriations panel responsible for funding the departments of Transportation and Housing.
“I’d have some concerns about it,” said Rep. Robert Aderholt (R-Ala.), who chairs the appropriations panel that funds the departments of Education, Labor, and Health and Human Services — all targets of Trump’s deepest funding cuts.
Tension has been building for months between those Republican appropriators and Vought, who has a history of testing the limits of funding law: When he served in this same role during Trump’s first administration, he froze aid to Ukraine in a move that helped set the stage for the president’s first impeachment trial.
Republican funding leaders are irked that the White House has yet to deliver a full budget request, which appropriators rely upon to write their dozen funding measures. Vought has already left open the door to withholding the new money if the administration doesn’t agree with the spending priorities in the final bills.
They also say the president’s budget director and other Cabinet secretaries have withheld essential information about how they are using federal cash as the Trump administration fights off more than 100 legal challenges around the country. The suits are seeking to overturn the White House’s freezing of billions of dollars Congress already approved for myriad programs and agencies.
House Appropriations Chair Tom Cole (R-Okla.) issued a rare rebuke of Vought this spring for taking down the public website showing how agencies are expected to disburse federal dollars.
But the Oklahoma Republican generally avoids any public criticism of the Trump administration and is not sounding off now about Vought’s embrace of pocket rescissions. Cole said this month that he would “look at each individual” request the White House sends to claw back funding, now that the House has passed the $9.4 billion package to nix money for foreign aid and public broadcasting.
That package of funding cuts now sits in the Senate, where some top Republicans are interested in tweaking the plan to protect funding for preventing AIDS around the world and supporting PBS programming in their home states. Sen. Ron Johnson (R-Wis.) suggested Vought’s public comments about using pocket rescissions could be intended to encourage reluctant senators to clear it.
“Maybe that’s the way to let members know: Vote for the ones he sends up,” Johnson said, noting that he would be “totally supportive” of Vought using the tactic this fall.
Another Senate fiscal hawk, Homeland Security and Governmental Affairs Chair Rand Paul (R-Ky.), said he believes the law “does allow for pocket rescissions.”
“I think the president should have more power not to spend money,” Paul told reporters last week. “So if we have a way to reduce spending, by all means, we should use it.”
No court has ruled on the president’s power to cancel funding by sending Congress a request and then running out the clock at the end of the fiscal year. But GAO has twice weighed in.
In 2018, the watchdog found that the law “does not permit the withholding of funds through their date of expiration.” Vought, though, likes to cite an older GAO conclusion from 1975: It determined that Congress was unable to reject then-President Gerald Ford’s requests to claw back funding “in time to prevent the budget authority from lapsing.”
Katherine Tully-McManus contributed to this report.
Congress
Paxton reports $18M quarterly fundraising haul
Texas Attorney General Ken Paxton raised $18 million in the third quarter of 2026 across his campaign and his joint fundraising committees, his campaign tells Blue Light News, a significant haul for the homestretch of the election.
Paxton’s number is double his $9 million second-quarter total, and signals Republican donors are rallying behind their Texas nominee. The campaign did not provide a current cash-on-hand total.
Democrat James Talarico’s campaign has yet to release his fundraising totals for the quarter. He raised $30 million last quarter.
“We now have the resources to make sure every Texan sees Talarico’s radical record between now and Election Day,” said Nick Maddux, senior adviser to the Paxton campaign.
The past quarter — the first full reporting period after Paxton’s primary runoff victory in May — saw Republicans flock to Texas for their midterm convention, which featured pro-Paxton fundraisers on the sidelines. Last week, the Paxton campaign announced a massive $20 million ad buy across the state, one of the largest-ever single media investments in a Texas Senate race.
Paxton needs the money: In a recording of a private donor event last month shared with POLITICO, he said he has “never been in a race where I felt less control over the campaign,” pointing to influence “from D.C.”
Texas has emerged as a huge money suck for Senate Republicans, who have poured tens of millions into the state to aid Paxton. Senate Leadership Fund, their top super PAC, has spent or reserved well over $100 million in the state to date, and the Trump-aligned MAGA Inc. and its affiliates plan to spend near $45 million in the state through Oct. 12.
Paxton has acknowledged that money has changed the race’s narrative: In a recording of a private donor event last monthshared with POLITICO, he said he has “never been in a race where I felt less control over the campaign,” pointing to influence “from D.C.”
Most recent public polling shows Talarico with a small lead in the race in spite of the recent onslaught in GOP spending, though Paxton’s campaign released an internal poll last week showing Paxton leading by three points.
Congress
Where Warnock is visiting in the final midterms sprint
Sen. Raphael Warnock is hitting the road for the last month before Election Day.
The Georgia Democrat’s final midterm campaign surrogate sprint will only increase chatter around the possibility that he might run for president in 2028, according to a nine-stop itinerary shared first with Blue Light News.
First, he’ll touch down in New Hampshire on Tuesday before hitting Nevada on Wednesday. Next, he’ll travel to South Carolina (Oct. 13), Mississippi (Oct. 14), North Carolina (Oct. 15), South Carolina (Oct. 16-17), Michigan (Oct. 20-21), Wisconsin (Oct. 23) and Ohio (Oct. 24-26).
“Senator Reverend Warnock will be hitting the trail to energize voters who are sick of the President enriching himself while ordinary people continue to pay more for everything,” a spokesperson told Playbook. “Tapping into the righteous anger that voters are feeling across the country, the pastor in the Senate will again make the campaign trail his pulpit: calling out Trump’s corruption, while leaving voters hopeful for the next generation of Democratic leadership.”
Asked recently at the Texas Tribune Festival about whether he would run for president, Warnock said: “We’ll see what happens.”
Congress
Capitol agenda: Dems split on probing Trump corporate allies
Democrats are eager to win back subpoena power if they retake Congress, but they’re split on how hard they’ll go after corporate America.
The party is united by the idea of aggressive oversight of President Donald Trump’s administration, which will help shape their messaging in the run-up to the 2028 election. But Democrats are at odds over how fiercely to use their probing power to go after the corporations, law firms and universities that courted the White House over the past two years.
“We don’t want to turn into a banana republic where you lose an election and it’s all about retribution,” Rep. Bill Foster, a senior member of the Financial Services Committee, said.
“We’re going to have to be a little bit wise about when companies simply did something they had to do to survive this unprecedented level of corruption, compared to companies that actually got on board and profited more by being a partner in his corruption,” he added.
Some progressives counter that a restrained approach would sit uneasily with the party’s base.
“It would be political suicide for Democrats to campaign on fighting corruption and then turn around and go easy on the very companies that are facilitating it,” said Ella Fanger, corporate power policy adviser at the liberal nonprofit group Demand Progress.
Prime targets for some Democrats are the tech companies that have taken steps to be on the president’s good side, like Apple, Amazon and Meta, which have all donated to Trump’s ballroom effort. Major cryptocurrency players, including Coinbase, Ripple and Tether also chipped in for the ballroom, and will be subject to questioning from Democrats.
The late convicted sex offender Jeffrey Epstein’s networks and associates are also poised for probes — a push that has ensnared big banks like JPMorgan Chase, Deutsche Bank and Bank of America in the past.
Sen. Chris Murphy said the party should focus on the nexus between Trump and corporate corruption.
“We should get to the bottom of the corrupt relationship that exists between corporations in this country and the Trump administration,” Murphy said, pointing to questions he’s posed about a tobacco company’s donation to Trump’s super PAC before new e-cigarette rules were unveiled.
Still, Sen. Catherine Cortez Masto, who serves on Senate Banking, warned against the weaponization of power.
“Our focus should be solving problems that we’re seeing happening,” she said, pointing to cost-of-living issues around health care, housing and energy.
What else we’re watching:
— FIRST IN IC: BUILD AMERICA CAUCUS AGENDA — Energized by progress on permitting and housing legislation this term, a bipartisan development-focused caucus is rolling out a detailed agenda for next term. The 40-member Build America Caucus is releasing a 95-page package of proposals, first shared with Blue Light News, that outlines plans touching on health care, transportation, child care and research. The group launched last year with the goal of cutting red tape and regulatory bottlenecks to spur development.
— AI COLLAB STILL ILLUSIVE FOR CRUZ, CANTWELL — Commerce Chair Ted Cruz and ranking member Maria Cantwell might still be celebrating Senate passage of their landmark college sports bill last week, but it’s unclear the momentum will carry forward to agreement on another committee priority: artificial intelligence. Among the dozen lawmakers, aides and industry experts who spoke to Blue Light News, few expect the two senators to shed their well-established ideologies and styles after the mutual win. That could doom their ability to replicate their latest achievement in something as complex and divisive as an AI regulatory framework.
Jasper Goodman, Katherine Hapgood, Riley Rogerson and Kelsey Brugger contributed to this report.
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