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

288The 2011 Debt Limit Impasse: Treasury’s Actions & The Counterfactual – What Might Have Happened if the National Debt Hit the Statutory LimitProfessor Tribe argues that the President would have the authority toprioritize spending if the national debt hit the statutory limit because(1) the existing revenue sources would not allow the President tofulfill all spending obligations and (2) he does not have the power toraise revenues without congressional authorization. 209 As a result, thePresident’s only option would be to cut spending in order to avoida breach of the debt limit or the rules of the tax code. According toProfessor Tribe, the President may be under some constraints whenhe chooses which obligations to prioritize. Importantly, the spirit ofthe impoundment crisis and its legal backlash provide an implicitprohibition against prioritizing obligations for political allies. 210Prioritization is a de facto choice to not fulfill some appropriatedobligations; therefore, the President may be able to justify temporaryprioritization by using the rescission or deferral provisions of theImpoundment Control Act. 211 When a spending obligation comesdue that the President does not want to pay, he may propose torescind the obligation. 212 Congress would then have forty-five daysto pass a rescission bill; otherwise, the President must fulfill theobligation. Thus, even if Congress does not pass a rescission bill, therescission proposal could buy the President forty-five days until hemust spend the undesired allotment. 213 The deferral provisions of theAct would permit the President to defer spending obligations untilthe end of the fiscal year. 214 However, the President would have toshow that the deferral proposal fits into one of the three permittedpurposes stated in the Act: “(1) to provide for contingencies; (2) toachieve savings made possible by or through changes in requirementsor greater efficiency of operations; or (3) as specifically provided bylaw.” 215If the President attempted to achieve prioritization through deferral,he would likely seek to justify it as a provision for “contingencies”lawresources/antideficiencybackground.html). See also Levit et al. supra note 171, at 8.209See Tribe, supra note 144. See also supra Theory I.A – The President is Bound by the DebtLimit.210See id.211See Levit, et al., supra note 171, at 8-9.212See 2 U.S.C. § 683(a) (1987).213See 2 U.S.C. § 683(b) (1987).2142 U.S.C. § 684(b) (1987).215Id.