GAO Challenges White House Over Withheld Funds

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ByMiles Harrington

October 10, 2026

A new GAO opinion and an $810 million cancellation sharpen a constitutional dispute over whether the White House can delay or undo spending approved by Congress.

The central White House–Congress dispute is over a basic constitutional question: whether an administration may hold back money that Congress has appropriated. The Government Accountability Office says the White House illegally withheld more than $1 billion for education and health-care research, its latest finding in a series of more than six such opinions since President Donald Trump began his second term, according to Politico.

That finding concerns withheld funds and should be distinguished from a separate $810 million cancellation. The Washington Examiner reports the cancellation involved 11 rescissions spanning Commerce, Education, Health and Human Services, Homeland Security, Housing and Urban Development, and Justice. About $567 million was directed at refugee-assistance programs.

The distinction matters. A rescission is a request to cancel appropriated funds, while an impoundment is a decision to delay or withhold spending. Congress’s power over appropriations is not simply a matter of competing policy preferences: the executive branch is charged with carrying out laws Congress enacts. Senate Appropriations Chair Susan Collins, a Republican, said the Office of Management and Budget’s months-long delay amounted to an unreported impoundment and an unlawful usurpation of Congress’s authority.

GAO’s opinions are significant oversight findings, not court judgments. Politico also reports that the office has no permanent comptroller general, a vacancy that could limit its ability to challenge the administration before the Supreme Court. That leaves a practical question beyond the legal merits: whether Congress has an effective route to enforce its spending decisions when the executive branch resists them.

The dispute comes amid another disagreement between Congress and the White House, this time over Russia. Trump said Russia would supply diesel in several installments, beginning with more than 300,000 tons immediately, followed by 500,000 tons in November and further shipments. The Treasury Department issued a temporary authorization for transactions involving Russian-origin diesel through April 7, 2027, according to Politico and the Kyiv Post.

Senate Democratic Leader Chuck Schumer, Jeanne Shaheen and Elizabeth Warren called the decision a “total betrayal” of Ukraine, European allies and U.S. national security. Their criticism invokes a recent law: Congress approved sanctions on countries buying Russian energy, and Trump signed that legislation last month, the Associated Press reported. The scope and terms of the Treasury authorization therefore matter alongside the president’s public description of the arrangement; the available reports do not establish how the temporary permission interacts with every provision of the sanctions law.

Axios reported that a U.S. official said Trump moved ahead after Ukrainian President Volodymyr Zelenskyy ignored repeated U.S. requests to stop attacks on Russian oil refineries. Zelenskyy called the arrangement a “weak decision” and said U.S.-Ukraine negotiations were being used as a “smokescreen.” Reports that envoy Steve Witkoff and Jared Kushner might travel to Moscow and Kyiv next week remain contingent, and the dispute could affect those plans.

Trump also selected Katie Zacharia as White House press secretary, replacing Karoline Leavitt, who left in August. The Associated Press described Zacharia as a Trump Media communications adviser and former Department of Homeland Security spokesperson who has also worked as a commentator for Fox News and Newsmax. The appointment changes the administration’s public-facing team, but does not resolve the policy conflicts now facing Congress.

Taken together, the funding findings and the diesel authorization put a familiar test before lawmakers: whether congressional statutes and appropriations will govern executive action in practice, not merely in official statements. The next consequential steps will be whether the administration changes course, whether Congress uses its oversight and legislative powers, and whether disputes reach the courts.

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