“President Donald Trump’s decision to cancel nearly $5 billion in federal aid without congressional authorization appears to be a straightforward violation of federal law.
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While that spending might be wasteful or foolish, the president does not have the authority to refuse to spend money that has been appropriated by Congress—though the Trump administration seems eager to challenge that limitation on executive power.
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The laws that govern the federal budget process—most importantly, the Impoundment Control Act of 1974 (ICA)—allow presidents to make rescission requests to Congress. Trump did that earlier this year, and lawmakers followed through by cutting $9 billion in previously approved spending. The law also allows the executive branch to freeze funding for up to 45 days while Congress considers such a request.
Ross Vought, the director of the White House budget office, has argued that the executive branch can use that 45-day window to do exactly what Trump is now attempting: cancel any spending during the final 45 days of the fiscal year, which ends on September 30. “By withholding the cash for that full timeframe—regardless of action by Congress—the White House would treat the funding as expired when the current fiscal year ends on Sept. 30,” Politico explained earlier this year.
Vought is wrong about that.
“The President has no unilateral authority to impound funds,” the Government Accountability Office (GAO) concluded in 2018 when it was asked by the House Budget Committee to examine the question of pocket rescissions. “We conclude that the ICA does not permit the impoundment of funds through their date of expiration. The plain language of the ICA permits only the temporary withholding of budget authority and provides that unless Congress rescinds the amounts at issue, they must be made available for obligation.”
Indeed, if the president were allowed to cancel any federal spending within the final 45 days of the fiscal year, then he could effectively cancel any federal spending at any time—by delaying the release of funds until the end of the year, then canceling them.”