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Can the president override Congress on spending?

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Key takeaways

  • The power of the purse belongs to Congress, and the president must follow specific legal procedures if they want to withhold or defer spending.
  • Historical examples, from Jefferson to Nixon, demonstrate the evolution of presidential budget authority and limits.
  • The Impoundment Control Act of 1974 was enacted to prevent presidents from unilaterally impounding funds, establishing clear legal processes.
  • Modern disputes, particularly under Trump, reveal tensions around presidential claims of inherent authority and the importance of judicial oversight.
  • Legal scholars agree that the Constitution supports Congress's authority to set minimum spending requirements, and presidents cannot unilaterally refuse to spend allocated funds.

Summary

Introduction to Presidential Spending Power and the Concept of Impoundment

The episode begins by exploring the general question of whether a president can override Congress's appropriations by spending less than allocated or refusing to spend funds. It introduces the legal concept of impoundment, specifically referencing the Impoundment Control Act of 1974, which outlines the legal processes a president must follow to withhold or defer spending. The discussion highlights how this process is designed to prevent unconstitutional executive overreach, with historical examples from presidents like Thomas Jefferson and Richard Nixon illustrating different approaches and conflicts surrounding this power.

Historical Examples and Legal Precedents

The episode delves into historical instances of presidential impoundment, beginning with Jefferson's optional approach to funding gunboats and Nixon's widespread and contentious withholding of funds, which led to court battles and Supreme Court rulings affirming Congress's spending authority. These examples serve to illustrate how the practice has evolved, with early presidents generally respecting congressional allocations, and Nixon pushing the boundaries of presidential power. The law of the land, the Impoundment Control Act of 1974, was enacted partly in response to Nixon's overreach, setting clear procedures for deferrals and rescissions that presidents must follow.

Current Debates and Trump's Actions on Budget Management

The discussion shifts to contemporary debates, focusing on President Trump's recent actions involving the withholding of federal funds. It highlights how Trump followed the legal processes in some instances, such as in 2018, but also how he has claimed that laws limiting presidential power are unconstitutional. Trump’s administration has attempted to freeze trillions in federal funding without following the proper procedures, leading to lawsuits and judicial orders to release the funds. The segment discusses the legal arguments from Trump's team and the opinions of constitutional scholars, contrasting the historical limits on presidential spending with current claims of inherent power.

Legal and Constitutional Opinions and the Future of Presidential Spending Powers

The episode features insights from legal scholars and judges, emphasizing that the Constitution and laws like the Impoundment Control Act affirm that the president cannot unilaterally refuse to spend appropriated funds. Even conservative justices have affirmed that the president lacks the authority to refuse to spend money that Congress has allocated. The ongoing legal battles, including court orders to unfreeze funds and the argument that current actions constitute a constitutional crisis, underscore the importance of clear legal boundaries. The narrative suggests that the balance of power remains in favor of Congress, despite claims by presidential administrations.

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Show notes

So the president can't spend more money than Congress has agreed and voted to spend. But can the president spend less money than Congress wants?

It all comes down to something called "impoundment" and the Impoundment Control Act of 1974, which controls when and how a president can take away money Congress has appropriated.

President Trump followed the Impoundment Control Act rules back in 2018. But now, in his second term, he's saying he thinks that law is unconstitutional.

On this episode: the history of impoundment, from Thomas Jefferson to Richard Nixon and Bill Clinton. And what constitutional scholars and judges are saying after Trump attempted to dismantle a federal agency and freeze trillions in federal funding that goes to states for everything from new school buses to public health research.

We've got more about impoundment in the latest Planet Money newsletter.

Check out The Indicator's episodes on
the gutting of USAID and how American farmers are affected in USAID cuts. And, our previous episode on the big government money pipe that's being closely watched right now.

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