Frank Nez 
On August 29, 2025, President Donald Trump’s decision to override Congress with a rare “pocket rescission” to cancel nearly $5 billion in congressionally approved foreign aid and peacekeeping funds has plunged Washington into chaos, increasing the likelihood of a government shutdown by the end of September.
According to a Raw Story report, Punchbowl News founder Jake Sherman, speaking on MSNBC’s Morning Joe, described Trump’s move as a “bomb” thrown into the government funding process, predicting it will “up the chances of a government shutdown to damn close” to 100%.
With Democrats refusing to negotiate new spending deals and economic pressures mounting, the move threatens to disrupt federal operations and deepen political divides as the fiscal year deadline looms.
Details of Trump’s Pocket Rescission
Late on August 28, 2025, Trump notified Congress of his intent to cancel $4.95 billion in foreign aid and peacekeeping funds, invoking a “pocket rescission”—a maneuver not used in 48 years—presented so late in the fiscal year that it proceeds regardless of congressional approval.
Sherman explained that this tactic, which seeks to roll back congressionally appropriated spending, has infuriated Democrats, who see no incentive to cut new deals when Trump can unilaterally alter budgets.
“The Democrats are not going to see it in their interest to cut a spending deal at the end of September, when government funding runs out. Period. The end,” Sherman stated on Morning Joe.
The rescission, tied up in court until August 28, targets funds Democrats view as critical, further straining bipartisan cooperation needed for Senate approval, which requires 60 votes.
Sherman noted, “Congress cannot pass a government funding bill without Democrats’ help in the Senate,” highlighting the high stakes of Trump’s strategy.
The move follows a pattern of fiscal disruption, with House Speaker Mike Johnson facing pressure from Trump and Elon Musk, as seen in earlier failed budget proposals.
Economic and Political Context
Trump’s 10% across-the-board tariffs, with rates up to 80% on Chinese goods by November 10, have sparked fears of stagflation—high inflation with slow growth and rising unemployment, per Wired.
James Angel, a Georgetown University finance professor, told Wired, “All signs look pretty pessimistic on the inflation front.
Tariffs will increase the prices we pay for imported goods.”
The Bureau of Economic Analysis reported a sluggish 1.2% GDP growth rate for the first half of 2025, with July’s job growth at just 73,000, according to The Economic Times.
A Republican strategist admitted to Wired, “If this experiment fails, it’s gonna fail horribly, and I think we’ll begin to see the impacts of that sooner than later.”
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Public and Expert Reactions
On X, users like @BizToc echoed concerns about economic instability, amplifying fears of a broader downturn.
Democrats, including Sen. Adam Schiff, have criticized Trump’s broader agenda, accusing him of prioritizing retribution over governance.
Meanwhile, MAGA supporters like @WarClandestine defend Trump’s policies as America First.
Sherman told MSNBC, “This will define the next 32, 33 days,” emphasizing the shutdown’s potential to disrupt federal services during a time of economic fragility.
The move echoes past fiscal chaos, such as Trump’s 2020 attack on a bipartisan pandemic relief package, which Politico’s Jake Sherman called a “full-blown legislative crisis.”
With government funding set to expire on September 30, 2025, Trump’s rescission risks paralyzing federal operations, from national parks to essential services, at a time when public trust is already strained.
As the 2026 midterms approach, the administration’s ability to navigate this crisis will be critical.
Democrats’ refusal to compromise, as Sherman noted, could force Republicans to bear the blame for any shutdown, potentially reshaping the political landscape.
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