Principles of Federal Appropriations Law - US Government ...

Chapter 1
Introduction
OMB and to develop and oversee financial management plans, programs,
and activities within the agency.
b. Impoundment While an agency’s basic mission is to carry out its programs with the funds
Congress has appropriated, there is also the possibility that, for a variety of
reasons, the full amount appropriated by Congress will not be expended or
obligated by the administration. Under the Impoundment Control Act of
1974, an impoundment is an action or inaction by an officer or employee of
the United States that delays or precludes the obligation or expenditure of
budget authority provided by Congress. 2 U.S.C. §§ 682(1), 683. 60 The act
applies to “Salaries and Expenses” appropriations as well as program
appropriations. 64 Comp. Gen. 370, 375–76 (1985).
There are two types of impoundment actions—deferrals and rescission
proposals. A deferral is a postponement of budget authority in the sense
that an agency temporarily withholds or delays obligation or expenditure.
The President is required to submit a special message to Congress
reporting any deferral of budget authority. Deferrals are authorized only to
provide for contingencies, to achieve savings made possible by changes in
requirements or greater efficiency of operations, or as otherwise
specifically provided by law. 61 A deferral may not be proposed for a period
beyond the end of the fiscal year in which the special message reporting it
is transmitted, although, for multiple year funds, nothing prevents a new
deferral message covering the same funds in the following fiscal year.
2 U.S.C. §§ 682(1), 684. 62
60
For a detailed discussion of impoundment before the 1974 legislation, see B-135564,
July 26, 1973.
61 These requirements are repeated in 31 U.S.C. § 1512(c), which prescribes conditions for
establishing reserves through the apportionment process. The President’s deferral authority
under the Impoundment Control Act thus mirrors his authority to establish reserves under
the Antideficiency Act. In other words, deferrals are authorized only in those situations in
which reserves are authorized under the Antideficiency Act. U.S. General Accounting Office,
Impoundment Control: President’s Third Special Impoundment Message for FY 1990,
GAO/OGC-90-4 (Washington, D.C.: Mar. 6, 1990). Deferrals for policy reasons are not
authorized. 2 U.S.C. § 684(b).
62 Under the original 1974 legislation, a deferral could be overturned by the passage of an
impoundment resolution by either the House or the Senate. This “legislative veto” provision
was found unconstitutional in City of New Haven v. United States, 809 F.2d 900 (D.C. Cir.
1987), and the statute was subsequently amended to remove it. See Pub. L. No. 100-119,
§ 206, 101 Stat. 754 (Sept. 29, 1987), codified at 2 U.S.C. § 684(b). Congress may, of course,
enact legislation disapproving a deferral and requiring that the deferred funds be made
available for obligation.
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