Monitoring democratic institutions through public records

Spending Money Congress Approved — Week of Nov 3, 2025

Can the President refuse to spend money that Congress already approved? This is called "impoundment" and it's usually illegal.

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This week, two government actions drew attention to how the executive branch handles money that Congress has authorized. First, the President formally notified the Senate that he is terminating the Inspectors General—independent watchdog officials—at the Export-Import Bank and the Federal Housing Finance Agency, as recorded in a Senate communication filing. Second, during a Senate floor debate over a bill to pay federal workers during the government shutdown, Senator Peters of Michigan argued the proposal would give the President too much power to redirect money to purposes Congress didn't intend, saying "we have seen happen repeatedly in this administration." Senator Johnson of Wisconsin, the bill's sponsor, strongly disagreed.

This might matter because Inspectors General serve as Congress's eyes and ears inside executive agencies, detecting when money is wasted or spent in ways Congress didn't authorize. Removing these officials could weaken the checks that prevent a president from quietly redirecting funds away from their intended purpose—a practice known as impoundment, which is generally illegal.

There are important alternative explanations to consider. Most plausibly, these IG removals may be ordinary personnel changes—presidents have the legal authority to replace IGs, and the White House followed the required notification process. The two agencies involved are relatively small, suggesting this may not be a strategic effort to undermine oversight of major programs. Additionally, the Senate floor disagreement may reflect typical partisan dynamics during tense shutdown negotiations rather than a genuine expansion of presidential spending power.

Limitations: This analysis is based on AI review of public documents and does not represent a finding of fact. The President's specific reasons for the IG removals were not detailed in the available filing.