US Government Debt Different - Finance Department - University of ...

Jeremy Kreisberg & Kelley O’Mara (Under the Supervision of Professor Howell Jackson)If the President wishes to defer spending obligations, he must submita “special message” to Congress regarding his proposed rescission; 119however, the President must spend the money that he proposed torescind unless, within forty-five days, Congress passes 120 a rescissionbill. 121 The President cannot propose to rescind an obligation morethan once, 122 and he can only propose rescissions of discretionaryspending authority. 123 The President may defer spending until theend of the fiscal year under three circumstances: “(1) to provide forcontingencies; (2) to achieve savings made possible by or throughchanges in requirements or greater efficiency of operations; or (3) asspecifically provided by law.” 124 The Comptroller General, and notprivate individuals, 125 may bring suits pursuant to the Act. 126275In Clinton v. City of New York, 127 the Supreme Court affirmed thePresident’s duty to spend the full allotment of money authorized byCongress. After Congress enacted the Line Item Veto Act 128 in 1996,plaintiffs challenged President Clinton’s authority to cancel spendingprovisions of the Balanced Budget Act of 1997 and the TaxpayerRelief Act of 1997. 129 Specifically, President Clinton canceled section4722(c) of the Balanced Budget Act of 1997, which would haveexempted New York from returning certain Medicaid subsidies tothe federal government, 130 and section 968 of the Taxpayer ReliefAct of 1997, which provided a tax benefit to “owners of certain food119See 2 U.S.C. § 683(a) (1987).120The Senate cannot filibuster a rescission bill because debate on rescission bills is limited by2 U.S.C. § 688(d) (1974). See Jim Cooper, Op-Ed, Rescission Time in Congress, N.Y. Times,March 11, 2005, http://query.nytimes.com/gst/fullpage.html?res=980CE6D8173CF932A25750C0A9639C8B63.121See 2 U.S.C. § 683(b) (1987).122Id.123Gov’t Accountability Office, Impoundment Control Act: Use and Impact of Rescission Procedures7 (Dec.16, 2009), Statement of Susan A. Poling, Managing Associate General Counsel,Office of General Counsel, Before the Subcommittee on Federal Financial Management, GovernmentInformation, Federal Services, and International Security, Committee on HomelandSecurity and Governmental Affairs, U.S. Senate.1242 U.S.C. § 684(b) (1987).125See Rocky Ford Hous. Auth. v. U.S. Dept. of Agric., 427 F. Supp. 118, 134 (D.D.C. 1977).1262 U.S.C. § 687 (1987).127524 U.S. 417 (1998).128Id. at 437. The Line Item Veto Act allowed the President to cancel spending authorityunless Congress passed a disapproval bill. The President retained the authority to veto thedisapproval bill.129Id. at 420-21.130Id. at 422-23.