House Committee on the Budget – Impoundment Explainer, November 22, 2024

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Ranking Member Boyle’s Statement – “The legal theories being pushed by Elon Musk and Vivek Ramaswamy are as idiotic as they are dangerous,” said Ranking Member Boyle. “Unilaterally slashing funds that have been lawfully appropriated by the people’s elected representatives in Congress would be a devastating power grab that undermines our economy and puts families and communities at risk. House Democrats are ready to fight back against any illegal attempt to gut the programs that keep American families safe and help them make ends meet.” Read More

Executive Summary – President Trump may use impoundments to unilaterally do by fiat what he can’t pass in Congress.  What is the Impoundment Control Act? The Congressional Budget and Impoundment Control Act of 1974 (ICA) reasserted Congress’ power of the purse. Specifically, Title X of the Act – “Impoundment Control” – established procedures to prevent the President and other government officials from unilaterally substituting their own funding decisions for those of the Congress. The Act also created the House and Senate Budget Committees and the Congressional Budget Office. Why was the ICA necessary? Congress passed the ICA in response to President Nixon’s executive overreach – his Administration refused to release Congressionally appropriated funds for certain programs he opposed. While the U.S. Constitution broadly grants Congress the power of the purse, the President – through the White House Office of Management and Budget (OMB) and executive agencies – is responsible for the actual spending of funds. The ICA created a process the President must follow if he or she seeks to delay or cancel funding that Congress has provided.

The Basics – What does it mean to ‘impound’ funds? An “impoundment” is any action – or inaction – by an officer or employee of the federal government that precludes federal funds from being obligated[1] or spent, either temporarily or permanently. What has the Supreme Court said about the President’s power to impound funds? Several court cases were brought challenging President Nixon’s executive overreach on impoundments. Although decided after the ICA passed, the Supreme Court unanimously held in Train v. City of New York that even without the ICA, the President does not have unilateral authority to impound funds. Congress has the power of the purse…”