Trump Found to Flout Spending Law by Withholding Migrant Funds

Sept. 15, 2025, 9:30 PM UTC

The Department of Homeland Security violated federal appropriations law by withholding money for local governments and nonprofits that care for migrants, a government watchdog says.

The Government Accountability Office on Monday determined DHS defied the Impoundment Control Act — which limits when the president can withhold congressionally appropriated funds — by halting payouts under two grant programs designed to address homelessness and defray the costs of housing and caring for migrants who recently arrived in the US.

The funding halt and GAO’s finding that it violated federal law highlight tension between Congress and the executive branch over how the Trump administration has attempted to cut what it deems wasteful spending, even if it’s directed by Congress. GAO has found several of Trump’s actions run afoul of the impoundment law.

“The burden to justify withholdings rests with the executive branch, and GAO has a statutory duty to report to Congress impoundments the President has not reported,” GAO said in its Monday report on the migrant funds.

Homeland Security Secretary Kristi Noem and other Trump officials have argued that the migrant funds represented an abuse of taxpayer dollars, pointing to the use of the grants to house some migrants at a New York City hotel. She fired officials from the Federal Emergency Management Agency, which administers the grants, for making payments.

Read more: FEMA Fires Top Finance Official Over Migrant Payments to NYC

Congress approved $650 million for the Shelter and Services Program for fiscal 2024, a level that was continued through a stopgap funding measure for fiscal 2025. The grants build on a related funding process that originated during President Donald Trump’s first administration to help manage migrant arrivals.

Read more: Migrant Care Grants in Limbo Amid Trump Funding Freeze Plans

FEMA, which administers the migrant grants, in February announced that “no new obligation, disbursement, or payment of funds previously obligated may be issued pending additional guidance” from Noem. It also delayed payments of money to address homelessness, according to GAO.

“Donald Trump and Russ Vought need to immediately allow these resources to flow, and Republican lawmakers need to join us insisting every last bit of this funding gets out the door in a fair, impartial way,” Senate Appropriations Vice Chair Patty Murray (D-Wash.) said in a statement Monday.

DHS didn’t immediately respond to a request for comment.

To contact the reporter on this story: Ellen M. Gilmer in Washington at egilmer@bloombergindustry.com

To contact the editors responsible for this story: Giuseppe Macri at gmacri@bgov.com; Robin Meszoly at rmeszoly@bgov.com

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