Democracy Monitor

Monitoring democratic institutions through public records

← Back to overview

Spending Money Congress Approved

fiscal

The Impoundment Control Act of 1974 prohibits the executive from unilaterally withholding congressionally appropriated funds. Circumventing this — through rescission, deferral, or spending freezes — undermines Congress's constitutional power of the purse, a foundational check on executive authority.

If a president can ignore spending laws, every program exists at one person’s pleasure — including the ones you depend on. Why this matters →

Know of a government action in this category that we missed? Tell us.View the AI prompts used to assess this category

Week of Feb 24, 2025

Sustained departure from norms

AI content assessment elevated

Document review shows a sustained, high rate of clear-departure documents. Warrants close examination of the underlying record.

The week of February 24, 2025, marks the fifth consecutive week of confirmed concern in the impoundment and spending authority category, driven by a cluster of executive orders and memoranda that collectively construct new mechanisms for the executive branch to redirect, withhold, or condition congressionally appropriated funds. The AI content assessment flagged 9 of 49 documents for detailed review, with 5 assessed as clearly concerning and 3 as potentially concerning—an 88.9% concern rate against a baseline of 3.7%.

This might matter because the cumulative effect of these actions could affect Congress's power of the purse—the foundational mechanism through which the legislative branch controls executive action and ensures democratic accountability over federal spending.

The most structurally significant action is Ensuring Accountability for All Agencies, which directs OMB to "adjust such agencies' apportionments...to advance the President's policies and priorities" and permits OMB to "prohibit independent regulatory agencies from expending appropriations on particular activities." This could potentially constitute a challenge to the Impoundment Control Act of 1974, which requires the President to submit rescission requests to Congress rather than unilaterally withholding funds. If OMB exercises this authority to block spending by agencies like the FTC, SEC, or CFPB, it may allow the executive branch to exercise something resembling line-item veto power over appropriations to independent agencies—a power the Supreme Court struck down in Clinton v. City of New York (1998) when Congress itself attempted to grant it. The administration's stated justification—ensuring that independent agencies operate consistently with presidential policy priorities and improving governmental accountability—reflects a longstanding debate about the scope of presidential oversight over the administrative state, and some legal scholars support broader presidential coordination of independent agencies.

A companion order, Ensuring Lawful Governance and Implementing the President's "Department of Government Efficiency" Deregulatory Initiative, directs agencies to "terminate all such enforcement proceedings" for regulations deemed to exceed statutory authority. While framed as a deregulatory effort to streamline government operations and eliminate overreach, the practical effect could be to redirect congressionally appropriated enforcement resources away from statutory programs based on executive reinterpretation—a functional equivalent of impoundment through enforcement discretion rather than budget action. The most plausible counter-argument is that prosecutorial discretion is well-established executive authority, and presidents routinely prioritize enforcement resources. This is substantial: agencies do have discretion in how they allocate enforcement effort, and courts have generally been reluctant to compel enforcement action. However, the order's scope—directing a government-wide review across all regulatory programs with DOGE team leads coordinating—goes beyond case-by-case prioritization toward systematic non-enforcement of entire statutory regimes, which courts have found impermissible (see Heckler v. Chaney carve-outs and Texas v. United States on DAPA). A secondary counter-argument is that the order contains limiting language ("subject to their paramount obligation to discharge their legal obligations"), which could constrain its practical impact. It is also possible that these actions are part of a broader strategy to align federal operations with current policy priorities and reduce regulatory inefficiencies, which falls within the executive's general administrative purview.

Commencing the Reduction of the Federal Bureaucracy directs OMB to "reject funding requests" for designated entities including the U.S. Institute of Peace and the Inter-American Foundation. The most charitable reading is that these are legitimate reorganization proposals within the President's authority to recommend budget priorities; Congress remains free to appropriate funds regardless. Some targeted entities may indeed have functions that duplicate other agencies, making consolidation a reasonable policy choice. However, the order's directive to "reduce the performance of their statutory functions" before Congress has acted on any rescission request inverts the statutory process.

The Memorandum on Suspension of Security Clearances and Evaluation of Government Contracts targeting Covington & Burling LLP introduces a dimension that could be perceived as retaliatory, directing agencies to "align their agency funding decisions" with the President's political priorities. While contract reviews are routine, conditioning funding decisions on a firm's prior legal representation of a Special Counsel investigating the President may be seen as using spending authority to target adversarial legal activity—though the administration may characterize this as a legitimate review of potential conflicts of interest in government contracting.

Congressional floor speeches from Rep. Sherman, Sen. Schumer, and Sen. Reed document reported operational consequences: mass firings of probationary employees, termination of VA cancer clinical trials, dismissal of FAA safety personnel, and proposed dismantlement of NOAA—all representing potential degradation of congressionally funded program capacity without formal rescission.

Limitations: This analysis relies on published executive actions and congressional floor statements. Actual OMB apportionment decisions and agency compliance actions are not yet publicly documented, and courts may ultimately enjoin implementation.

View weekly summary for Feb 24, 2025

Week Archive#52 weeks with narratives