Culture Wars/Current Controversies

Can the President Unilaterally Cut Spending?

February 19, 2025
Welcome to The Lighthouse, the weekly email newsletter of the Independent Institute covering politics, economics, current events, and everything in between.
Dear Readers,

What branch of the government controls federal spending? It is a debate that has occasionally popped up throughout the decades and is once again a pressing constitutional question. The issue at hand is called “impoundment,” referring to the ability of a president to refuse to spend congressionally appropriated funds.

Historically, presidents would do this sparingly to curb what they thought was unnecessary spending. After Richard Nixon used the power to withhold spending on federal programs, Congress passed a law in 1974, restricting the president’s use of impoundment. As America’s national debt looms, President Trump and his allies argue that Congress’s post-Nixon reform is unconstitutional and that the president has discretion over federal funds. Others, like Supreme Court Justice Brett Kavanaugh, argue that presidential impoundment undermines Congress’s power of the purse, outlined in the Constitution. This week’s articles include a discussion of how ultimately, federal spending must be reined. Reckless government spending undermines economic stability, and misguided policies harm consumers and industrial resilience.

Happy reading.

Jonathan Hofer
Managing Editor

Top picks this week

U.S. Government’s Excessive Spending Scandal Grows Bigger

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In its final months, the Biden-Harris administration engaged in excessive spending, causing a larger hole in the federal budget.
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Rising energy prices are crushing consumers worldwide. With billions in subsidies propping up unreliable sources of energy, plans to shut down reliable nuclear power plants may potentially increasegovernment waste.

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