Spending Money Congress Approved — Week of Apr 14, 2025

This week, the President signed an executive order targeting a specific law firm—Susman Godfrey—directing federal agencies to cancel contracts with the firm, suspend its employees' security clearances, and cut off government services. The order, Addressing Risks From Susman Godfrey, justifies these actions by citing the firm's legal work, including election-related litigation and diversity programs, calling them efforts to "weaponize the American legal system." The administration also frames the actions as protecting national interests and security.

This might matter because when the executive branch terminates existing contracts and redirects funds that Congress already approved for those agreements, it could affect Congress's constitutional control over federal spending—a protection that exists to ensure no president can unilaterally decide who gets or loses taxpayer-funded resources based on political disagreements. The Impoundment Control Act of 1974 was specifically designed to prevent this kind of executive spending refusal.

It's important to consider alternative explanations. The most likely is that the President is exercising legitimate authority over federal contracting and security clearances—areas where presidents traditionally have significant discretion—and the order's "to the extent permitted by law" language may limit its practical impact. Another possibility is that the administration is enforcing anti-discrimination rules against the firm's race-based fellowship program, which could fall within established policy. A third possibility is that the order is intended as a temporary step while further legal review takes place, which could limit its long-term effects. However, the order goes well beyond any single issue, citing the firm's client advocacy and litigation positions as justifications, and its mandatory language suggests more than a provisional action.

Separately, the President publicly stated he could remove the Federal Reserve Chairman at will, saying "if I want him out, he'll be out of there real fast" during remarks with the Italian Prime Minister. The Federal Reserve Act gives the chairman a fixed term removable only "for cause"—a protection Congress created to keep monetary policy independent from political pressure. The most likely benign reading is that this is rhetoric rather than imminent action.

Limitations: This is AI-generated analysis based on publicly available documents and cannot determine how agencies will implement these orders or how courts may respond.