Impoundment

Impoundment is when the executive branch withholds, delays or cancels spending that Congress has approved. Presidents have done it since Thomas Jefferson, sometimes for administrative reasons such as savings and sometimes to resist Congress's priorities.

After President Nixon impounded large sums, Congress enacted the Impoundment Control Act of 1974. The law lets presidents propose a rescission of funds, which Congress must approve within 45 days of continuous session; during that period the funds can be withheld, but if Congress does not act, the money must be spent. It also requires notice of deferrals. The Government Accountability Office reviews cases and has found violations by presidents of both parties, though it cannot compel spending beyond a lawsuit.

Presidents argue the law improperly limits their power and that the Constitution's duty to "take Care that the Laws be faithfully executed" gives them discretion, an argument tied to the unitary executive theory. Congress responds that the Constitution gives it the power of the purse and that the president must follow appropriation laws. Disputes over impoundment of aid and agency funds have grown in recent administrations and have been tested in the courts. It is a core separation of powers issue.