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Blog

Clarification on Impoundment

8/4/2025

 
There has been some confusion recently about whether the Administration can legally implement the president’s FY26 budget request in FY25 ahead of the new fiscal year,  or in FY26 regardless of the details of the federal budget or continuing resolution that Congress passes for FY26.  The answer is it would be unconstitutional for the Administration to do so and constitute impoundment. The  Administration must spend the funds that Congress appropriates and that the President signs into law. As is explained in the two references shared below this is based on the separate duties established for the three separate branches of our government by the US Constitution. 

"FAQs on Impoundment: Presidential Actions Are Constrained by Long-Standing Constitutional Restrictions"


"Trump Rescission Proposal Builds on Illegal Impoundments, Would Undermine Future Funding Deals"

It is true there is a mechanism in the Impoundment Control Act of 1974 through which the Administration can temporarily pause spending for up to 45 days and request a rescission of specific funds from Congress following specific procedures. However, after that 45-day window is up, if Congress does not approve the rescission of those funds, the Administration  must release and spend the funds as Congress has legislated. Also, Congress does specifically appropriate NASA funds down the level of specific programs areas, see for example:


“NASA Appropriations and Authorizations: At a Glance”  

And this situation does not change in the case of a continuing resolution, where Congress still will specify what the continuing funding rate levels will be across those programs, see: 

“Continuing Resolutions: Overview of Components and Practices" 



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