Budget and Impoundment Control Act of 1974

Budget and Impoundment Control Act of 1974

88 stat. 297, 31 U.S.C. S 1400

Although several presidents had impounded funds appropriated by Congress, President Richard Nixon attempted to exercise unusually extensive control over governmental expenditures. This act, which was passed following Nixon’s refusal to spend funds in excess of his budget requests, was intended to reassert congressional control over government spending. Title X, reproduced in part here, established mechanisms for congressional review of impoundments and authorized Congress to override them through legislative vetoes. The legislation also provided for legal action by the comptroller general in the event of presidential evasion of his statutory responsibilities

§1402. Rescission of Budget Authority

(a) Transmittal of Special Message

Whenever the President determines that all or part of any budget authority will not be required to carry out the full objectives or scope of programs for which it is provided or that such budget authority should be rescinded for fiscal policy or other reasons (including the termination of authorized projects or activities for which budget authority has been provided), or whenever all or part of budget authority provided for only one fiscal year is to be reserved from obligation for such fiscal year, the President shall transmit to both Houses of Congress a special message specifying—

1. the amount of budget authority which he proposes to be rescinded or which is to be so reserved;
2. any account, department, or establishment of the Government to which such budget authority is available for obligation, and the specific project or governmental functions involved;
3. the reasons why the budget authority should be rescinded or is to be so reserved;
4. to the maximum extent practicable, the estimated fiscal, economic, and budgetary effect of the proposed rescission or of the reservation; and
5. all facts, circumstances, and considerations relating to or bearing upon the proposed rescission or the reservation upon the objects, purposes, and programs for which the budget authority is provided.

(b) Requirement to Make Available for Obligation

Any amount of budget authority proposed to be rescinded or that is to be reserved as set forth in such special message shall be made available for obligation unless, within the prescribed 45-day period, the Congress has completed action on a rescission bill rescinding all or part of the amount proposed to be rescinded or that is to be reserved…

§1403. Disapproval of Proposed Deferrals of Budget Authority

(a) Transmittal of Special Message

Whenever the President, the Director of the Office of Management and Budget, the head of any department or agency of the United States, or any officer or employee of the United States proposes to defer any budget authority provided for a specific purpose or project, the President shall transmit to the House of Representatives and the Senate a special message specifying—

1. the amount of the budget authority proposed to be deferred;
2. any account, department, or establishment of the Government to which such budget authority is available for obligation, and the specific projects or governmental functions involved;
3. the period of time during which the budget authority is proposed to be deferred;
4. the reasons for the proposed deferral, including any legal authority invoked by him to justify the proposed deferral;
5. to the maximum extent practicable, the estimated fiscal, economic, and budgetary effect of the proposed deferral; and
6. all facts, circumstances, and considerations relating to or bearing upon the proposed deferral and the decision to effect the proposed deferral, including an analysis of such facts, circumstances, and considerations in terms of their application to any legal authority and specific elements of legal authority invoked by him to justify such proposed deferral, and to the maximum extent practicable, the estimated effect of the proposed deferral upon the objects, purposes, and programs for which the budget authority is provided.

A special message may include one or proposed deferrals of budget authority. A may not be proposed for any period of extending beyond the end of the fiscal year in which the special message proposing the deferral is transmitted to the House and the Senate.

(b) Requirement to Make Available for Obligation

Any amount of budget authority proposed to be deferred, as set forth in a special message transmitted under subsection (a) of this section, shall be made available for obligation if either House of Congress passes an impoundment resolution disapproving such proposed deferral.

• Exception

The provisions of this section do not apply to any budget authority proposed to be rescinded or that  is  to be reserved as set forth in a special message required to be transmitted under section 1402 of this title. . . .

§1406. Suits by Comptroller General

If, under section 1402(b) or 1403(b) of this title, budget authority is required to be made available for obligation and such budget authority is not made available for obligation, the Comptroller  General is hereby expressly empowered, through  attorneys of his own selection, to bring a civil  action in the United States District Court for the District of Columbia to require such budget authority to be made available for obligation, and such court is hereby expressly empowered to enter in such civil action, against any department, agency, officer, or employee of the United States, any decree, judgment, or order which may be necessary or appropriate to make such budget authority available for obligation. The courts shall give precedence to civil actions brought under this section, and to appeals and writs from decisions in such actions, over all other civil actions, appeals, and writs. No civil action shall be brought by the Comptroller General under this section until the expiration of 25 calendar days of continuous session of the Congress following the date on which an explanatory statement by the Comptroller General of the circumstances giving rise to the action contemplated has been filed with the Speaker of the House of Representatives and the President of the Senate…

§1402. Rescission of Budget Authority

(a) Transmittal of Special Message

Whenever the President determines that all or part of any budget authority will not be required to carry out the full objectives or scope of programs for which it is provided or that such budget authority should be rescinded for fiscal policy or other reasons (including the termination of authorized projects or activities for which budget authority has been provided), or whenever all or part of budget authority provided for only one fiscal year is to be reserved from obligation for such fiscal year, the President shall transmit to both Houses of Congress a special message specifying—

• the amount of budget authority which he proposes to be rescinded or which is to be so reserved;
• any account, department, or establishment of the Government to which such budget authority is available for obligation, and the specific project or governmental functions involved;
• the reasons why the budget authority should be rescinded or is to be so reserved;
• to the maximum extent practicable, the estimated fiscal, economic, and budgetary effect of the proposed rescission or of the reservation; and
• all facts, circumstances, and considerations relating to or bearing upon the proposed rescission or the reservation upon the objects, purposes, and programs for which the budget authority is provided.

(b) Requirement to Make Available for Obligation

Any amount of budget authority proposed to be rescinded or that is to be reserved as set forth in such special message shall be made available for obligation unless, within the prescribed 45-day period, the Congress has completed action on a rescission bill rescinding all or part of the amount proposed to be rescinded or that is to be reserved…

§1403. Disapproval of Proposed Deferrals of Budget Authority

(a) Transmittal of Special Message

Whenever the President, the Director of the Office of Management and Budget, the head of any department or agency of the United States, or any officer or employee of the United States proposes to defer any budget authority provided for a specific purpose or project, the President shall transmit to the House of Representatives and the Senate a special message specifying—

• the amount of the budget authority proposed to be deferred;
• any account, department, or establishment of the Government to which such budget authority is available for obligation, and the specific projects or governmental functions involved;
• the period of time during which the budget authority is proposed to be deferred;
• the reasons for the proposed deferral, including any legal authority invoked by him to justify the proposed deferral;
• to the maximum extent practicable, the estimated fiscal, economic, and budgetary effect of the proposed deferral; and
• all facts, circumstances, and considerations relating to or bearing upon the proposed deferral and the decision to effect the proposed deferral, including an analysis of such facts, circumstances, and considerations in terms of their application to any legal authority and specific elements of legal authority invoked by him to justify such proposed deferral, and to the maximum extent practicable, the estimated effect of the proposed deferral upon the objects, purposes, and programs for which the budget authority is provided.

A special message may include one or proposed deferrals of budget authority. A may not be proposed for any period of extending beyond the end of the fiscal year in which the special message proposing the deferral is transmitted to the House and the Senate.

•  Requirement to Make Available for Obligation

Any amount of budget authority proposed to be deferred, as set forth in a special message transmitted under subsection (a) of this section, shall be made available for obligation if either House of Congress passes an impoundment resolution disapproving such proposed deferral.

•  Exception

The provisions of this section do not apply to any budget authority proposed to be rescinded or that  is  to be reserved as set forth in a special message required to be transmitted under section 1402 of this title. . . .

1406. Suits by Comptroller General

If, under section 1402(b) or 1403(b) of this title, budget authority is required to be made available for obligation and such budget authority is not made available for obligation, the Comptroller  General is hereby expressly empowered, through  attorneys of his own selection, to bring a civil  action in the United States District Court for the District of Columbia to require such budget authority to be made available for obligation, and such court is hereby expressly empowered to enter in such civil action, against any department, agency, officer, or employee of the United States, any decree, judgment, or order which may be necessary or appropriate to make such budget authority available for obligation. The courts shall give precedence to civil actions brought under this section, and to appeals and writs from decisions in such actions, over all other civil actions, appeals, and writs. No civil action shall be brought by the Comptroller General under this section until the expiration of 25 calendar days of continuous session of the Congress following the date on which an explanatory statement by the Comptroller General of the circumstances giving rise to the action contemplated has been filed with the Speaker of the House of Representatives and the President of the Senate….