Impoundment
Encyclopedia
Impoundment is the election of a President of the United States
not to spend money that has been appropriate
d by the U.S. Congress
. The precedent for presidential impoundment was first set by Thomas Jefferson
in 1801. The power was available to all presidents up to and including Richard Nixon
, and was regarded as a power inherent to the office. The Congressional Budget and Impoundment Control Act of 1974
was passed in response to perceived abuse of the power under President Nixon. Title X of the act, and its interpretation under Train v. City of New York
, essentially removed the power. This severely inhibited a president's ability to combat excessive spending.
The Impoundment Control Act of 1974 provides that the president may propose the rescinding of specific funds, but that rescission must be approved by both the House of Representatives
and Senate
within 45 days. In effect, this has removed the impoundment power, since Congress is not required to vote on the rescission and has ignored the vast majority of presidential requests.
's first use of the power involved refusal to spend $50,000 in funds appropriated for the acquisition of gunboats for the United States Navy
. He said in 1803 that "[t]he sum of fifty thousand dollars appropriated by Congress for providing gun boats remains unexpended. The favorable and peaceable turn of affairs on the Mississippi rendered an immediate execution of that law unnecessary." In keeping with his efforts to reduce the size of the debt, he left the funds for the ships unspent for over a year.
Forty three of fifty U.S. states give their governors the authority to not spend money allocated by the state congress.
In 1996 a bipartisan effort recognized the need for an executive tool to curb federal spending. This led to the passage of the Line Item Veto Act of 1996
, signed in to law by President Bill Clinton. However, This law was stuck down in 1998 by the courts on the grounds of it being in violation of the Presentment Clause of the U.S. Constitution.
Strengthening the rescission provision within the 1974 act has also been proposed as a means to curtail excessive congressional spending.
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
not to spend money that has been appropriate
Appropriation bill
An appropriation bill or running bill is a legislative motion which authorizes the government to spend money. It is a bill that sets money aside for specific spending...
d by the U.S. Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
. The precedent for presidential impoundment was first set by Thomas Jefferson
Thomas Jefferson
Thomas Jefferson was the principal author of the United States Declaration of Independence and the Statute of Virginia for Religious Freedom , the third President of the United States and founder of the University of Virginia...
in 1801. The power was available to all presidents up to and including Richard Nixon
Richard Nixon
Richard Milhous Nixon was the 37th President of the United States, serving from 1969 to 1974. The only president to resign the office, Nixon had previously served as a US representative and senator from California and as the 36th Vice President of the United States from 1953 to 1961 under...
, and was regarded as a power inherent to the office. The Congressional Budget and Impoundment Control Act of 1974
Congressional Budget and Impoundment Control Act of 1974
The Congressional Budget and Impoundment Control Act of 1974 is a United States federal law that governs the role of the Congress in the United States budget process.-The Congressional budget process:...
was passed in response to perceived abuse of the power under President Nixon. Title X of the act, and its interpretation under Train v. City of New York
Train v. City of New York
Train v. City of New York, 420 U.S. 35, 95 S. Ct. 839, 43 L. Ed. 2d 1 , was a case in the Supreme Court of the United States whose implications mean "[t]he president cannot frustrate the will of Congress by killing a program through impoundment."...
, essentially removed the power. This severely inhibited a president's ability to combat excessive spending.
The Impoundment Control Act of 1974 provides that the president may propose the rescinding of specific funds, but that rescission must be approved by both the House of Representatives
United States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...
and Senate
United States Senate
The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...
within 45 days. In effect, this has removed the impoundment power, since Congress is not required to vote on the rescission and has ignored the vast majority of presidential requests.
History
President Thomas JeffersonThomas Jefferson
Thomas Jefferson was the principal author of the United States Declaration of Independence and the Statute of Virginia for Religious Freedom , the third President of the United States and founder of the University of Virginia...
's first use of the power involved refusal to spend $50,000 in funds appropriated for the acquisition of gunboats for the United States Navy
United States Navy
The United States Navy is the naval warfare service branch of the United States Armed Forces and one of the seven uniformed services of the United States. The U.S. Navy is the largest in the world; its battle fleet tonnage is greater than that of the next 13 largest navies combined. The U.S...
. He said in 1803 that "[t]he sum of fifty thousand dollars appropriated by Congress for providing gun boats remains unexpended. The favorable and peaceable turn of affairs on the Mississippi rendered an immediate execution of that law unnecessary." In keeping with his efforts to reduce the size of the debt, he left the funds for the ships unspent for over a year.
Forty three of fifty U.S. states give their governors the authority to not spend money allocated by the state congress.
Proposed Alternatives
Every recent president has supported the power of impoundment including Presidents Ronald Reagan, George H. W. Bush, Bill Clinton, George W. Bush, and Barack Obama. Politicians John McCain, John Kerry, Al Gore, Pat Buchanan, Jeb Hensarling, Russ Feingold, Joe Lieberman, Judd Gregg, Paul Ryan have supported a return of the power as well.In 1996 a bipartisan effort recognized the need for an executive tool to curb federal spending. This led to the passage of the Line Item Veto Act of 1996
Line Item Veto Act of 1996
The Line Item Veto Act of 1996 enacted a line-item veto for the Federal government of the United States, but its effect was brief due to judicial review....
, signed in to law by President Bill Clinton. However, This law was stuck down in 1998 by the courts on the grounds of it being in violation of the Presentment Clause of the U.S. Constitution.
Strengthening the rescission provision within the 1974 act has also been proposed as a means to curtail excessive congressional spending.
Further reading
- Impoundment of Appropriated Funds on Justia.com
- 1974 Congressional Budget and Impoundment Control Act on The Bancroft Library
- Congressional Budget Impoundment Control Act on enotes.com