In May, the entire capacity of Colossus 1 in South Memphis — 220,000
processors, 300+ megawatts — was handed to a single tenant. Most people cross
off the right answer first, because it makes no sense. Musk had been publicly
criticising the winner for months. Then he spent a week in their building. Make
your pick — or go straight to what happened here.



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Who Just Leased 100% Of Elon Musk's Supercomputer?
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In May, the entire capacity of Colossus 1 in South Memphis — 220,000
processors, 300+ megawatts — was handed to a single tenant.

Most people cross off the right answer first, because it makes no sense.

A) The Pentagon
<[link removed]>
B) OpenAI
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C) Google
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D) Musk's closest competitor
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Musk had been publicly criticising the winner for months.

Then he spent a week in their building.

Make your pick — or go straight to what happened here.

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DAILY BRIEF FEDERAL SPENDING / EXECUTIVE POWER


Trump Moves to Cancel $810 Million Congress Approved, Reopening a Fight Over
Presidential Spending Power
The White House is using a disputed procedure known as a “pocket rescission”
to withhold $810 million already appropriated by Congress. The administration
says the law permits the move. The Government Accountability Office and senior
lawmakers disagree.

POCKET RESCISSION / FY 2026

$810M TOTAL TARGETED $567M HHS PORTION SEPT 30 FISCAL YEAR END
President Donald Trump's administration is attempting to cancel $810 million
that Congress previously appropriated across several federal agencies.
The White House announced the package Friday and described it as a “pocket
rescission,” a rarely used maneuver built around the timing of the federal
government's September 30 fiscal-year deadline.

THE MECHANISM The administration is asking Congress to rescind the money
only days before some of the funds expire. OMB argues that the Impoundment
Control Act allows the executive branch to withhold those funds while Congress
considers the rescission request.
WHAT CONGRESS APPROVED
The largest single rescission is $567 million from Health and Human Services
accounts used for services involving refugees, asylum seekers and other
noncitizens.

HEALTH & HUMAN SERVICES $600M Includes $567 million for noncitizen-related
services, $28 million in research funding and $5 million from the Office of
Minority Health.

EDUCATION $95M Includes $70 million in international education programs and
$25 million for migrant-student programs.

OTHER AGENCIES $115M Includes housing counseling, Justice Department
community-relations funding, DHS programs, minority-business programs and a
Treasury conservation account.
WHY THE LEGALITY IS DISPUTED
Under the Impoundment Control Act, a president can send Congress a special
message proposing that previously appropriated money be rescinded.
Agencies generally may withhold the affected money while Congress considers
the proposal for up to 45 days of continuous congressional session. If Congress
does not approve the rescission, the funds ordinarily must be made available.

GAO'S POSITION The Government Accountability Office says a “pocket
rescission” is not permitted by the Impoundment Control Act. GAO argues that
submitting a request so late that funds expire before Congress can meaningfully
act allows the president to achieve a cancellation without congressional
approval.

REPUBLICAN OBJECTION Senate Appropriations Chair Susan Collins called the
administration's actions illegal. The Maine Republican said the package was
sent without warning or consultation and accused OMB of undermining Congress's
constitutional authority over appropriations.
THE POWER-OF-THE-PURSE QUESTION
The dispute reaches beyond these particular programs because Congress writes
appropriations into law while the executive branch administers that spending.
Critics argue that if a president can prevent appropriated funds from being
spent simply by waiting until the end of the fiscal year, Congress loses part
of its practical control over federal spending.

WHITE HOUSE POSITION The administration argues that it is exercising
authority already available under federal budget law. It describes the
targeted accounts as unnecessary or inconsistent with administration priorities
and says the rescissions protect taxpayers from spending it considers wasteful.
THE 2025 PRECEDENT DID NOT SETTLE THE LAW
Trump used the same basic maneuver in 2025 to withhold nearly $5 billion in
foreign-aid and international-organization funding.
The Supreme Court allowed that action to proceed while litigation continued,
but the order did not definitively rule that pocket rescissions are lawful. The
current package is also different because most of the money involves domestic
programs.

IMPORTANT DISTINCTION Calling the move legally contested is more precise
than saying a court has already declared this $810 million package illegal.
GAO and lawmakers including Collins say the maneuver violates the Impoundment
Control Act. The administration disputes that interpretation, and the broader
constitutional question remains subject to litigation.

THE SIGNAL The immediate fight is over $810 million. The larger fight is
over whether the executive branch can use the fiscal-year clock to effectively
cancel spending without Congress affirmatively agreeing.

03 CORE NOTES What the $810 million dispute actually establishes

01 The White House is seeking to rescind exactly $810 million across HHS,
Education, HUD, DOJ, DHS, Treasury and Commerce-related programs.

02 GAO says pocket rescissions are not permitted under the Impoundment
Control Act because they can cause money to expire before Congress has a
meaningful chance to decide.

03 Republican Appropriations Chair Susan Collins joined Democrats in
objecting, while the White House maintains that the maneuver is a lawful use of
presidential rescission authority.


SOURCES White House — September 2026 Pocket Rescission Package
Office of Management and Budget — Proposed Rescissions of Budgetary Resources
U.S. Government Accountability Office — Pocket Rescissions and the
Impoundment Control Act
Associated Press — Trump Administration $810 Million Rescission Package
The Washington Post — Congressional Response to the $810 Million Rescission


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