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President Trump has proposed a new policy to essentially gut the
administrative state. This new policy centers around a little-known executive
power, a power that was used by presidents for well over 150 years
before being stripped away a half century ago. However, according to this
new proposal, President Trump said that he would work to claw back what's known
as the power of impoundment. Here's specifically what he said in a relevant
part of a speech that he delivered over in the state of New Hampshire.
Today, I'm proposing another new policy that will help us drain the swamp to
stop Biden's wasteful spending and crippling inflation. I will fight to
restore the president's historic impoundment power. A lot of you don't
know what that is. For 200 years, the president had the right to block
unneeded spending and return the funds directly to the Treasury. They stopped
that. Congress unconstitutionally probably attacked the impoundment power
in 1974, but it will come back. We're going to bring it back, and we will
squeeze the bloated federal bureaucracy, and we'll, instead of just having to
just spend it, we're going to reduce our debt. Now, if you've never heard of the
presidential power of impoundment before, you're not alone. I'm sure that
if I asked a thousand people out there on the street, well, I would be surprised
if even a single person knows about this power at all. And so today, let's go
through what this power of impoundment is, how it came to be lost, and what it
would mean for the country if President Trump was able to restore it. To start
with, let's rewind the clock back about 50 years to the 1970s. Back then, just like
today, the rate of inflation was spiraling out of control. And as this was
happening, the Nixon administration pinned the blame on Congress, or as he
referred to it as, the credit card Congress. Essentially, his argument was
that it was unfettered congressional spending that was leading to inflation.
And along that line, President Nixon attempted to set a limit on government
spending in order to try to curb back this inflation. In a July 1972 New York
Times article, here's how they generally described the situation, quote,
In his message to Congress, Mr. Nixon said that spending for the fiscal year
1973 was already nearly $7 billion higher than he had planned in his budget.
Then, they quoted President Nixon as saying the following, quote,
That figure by itself is bad enough, but even more spending appears to be on the
way. The inevitable result would be higher taxes and more income-eating
inflation in the form of higher prices. I'm convinced the American people do not
want their family budgets wrecked by higher taxes and higher prices, and I
will not stand by and permit such irresponsible action to undermine the
clear progress we have made in getting America's workers off the inflation
treadmill of the 1960s. And so, in short, he was warning Congress to not spend in
However, after Congress ignored his warning and allocated much more spending
into the federal budget, President Nixon simply refused to spend the appropriated
money. The money was appropriated by Congress, but the executive branch, i.e.
the Nixon administration, simply refused to spend it. This was exactly the power
of impoundment. Essentially, he was impounding the money that was allocated
by Congress. The idea behind the power of impoundment is that the budget that's
set by Congress is the ceiling. It's the maximum that the government is allowed
to spend in a given fiscal year. However, it does not mean that the
government has to spend that much, only that they can if they want to. The idea
is that the executive branch of government, meaning the White House, still
has a discretion as to whether or not to spend the money. It's a presidential
power that's been used for well over 150 years, starting all the way back in the
Thomas Jefferson administration. However, that all changed under Nixon's
administration. That's because, after he was weakened politically by the whole
Watergate scandal, President Nixon reluctantly signed a piece of legislation
which effectively completely surrendered the power of impoundment for both
himself, as well as for every single president after him. Here is how a New
York Times article from 1974 described the general situation.
The article was titled, Congress Gains Wide Budget Role. President Nixon signed
a bill today, bringing Congress into the federal budget-making process for the
first time, and curbing the president's authority to impound authorized funds
without congressional consent. In a signing ceremony in the Oval Office, Mr.
Nixon signed the Congressional Budget and Impoundment Control Act of 1974. Then,
President Nixon is quoted as saying the following during the actual signing
ceremony. And keep in mind, as you're listening to the statement of Nixon's,
that during this very moment in time, he is actively under investigation for the
whole Watergate scandal, and so for him, keeping a positive relationship with
Congress is of vital importance. And here's what he said, quote,
This bill is the most significant reform of budget procedures since
Congress began. It means Congress and the executive will work together to keep
down the cost of government, and we can help every American family to hold down
their budget. And so, just like that, with the stroke of a pen, President Nixon
signed away the power of impoundment, turning the office of the president into
essentially just the rubber stamp implementation mechanism for whatever
Congress wants. In a recent interview, here was how Mr. Russ Voth described this
And for your reference, if you don't know who he is, Mr. Voth was the director of
the Office of Management and Budget under President Trump. Quote,
Indeed, that is a rather apt way to put it. After Nixon signed that bill into law,
instead of setting the max ceiling for spending, Congress now sets the minimum
floor for spending. And so, as an example, if Congress allocates $1.4 trillion to
be spent in a given fiscal year, that is the absolute baseline amount of spending
that will definitely need to happen. All the office of the president can do is to
implement. He can no longer impound any of that money. This then led to the
multiple situations during Trump's term in office, wherein President Trump would
sign off on these giant spending bills, despite being, quote-unquote, unhappy
about the whole situation. Here's, for instance, how an article in the Real
Clear Wire publication described a typical example. Quote,
Trump promised he would never sign another bill like this again before
putting his signature on a, quote-unquote, crazy $1.3 trillion
spending bill in 2018. Two years later, he signed another omnibus bill, this one
worth $1.4 trillion, that he called disgraceful. Both times, Trump justified
voting for the bloated bills conservatives loathed by pointing to
increased military spending. However, if the power of impoundment was restored, it
would give US presidents, once again, the authority to exercise discretion in
regards to how much money their administration spent. And interestingly
enough, if you remember back to President Trump's term in office, he actually did
do something similar to this, similar to impoundment. That was when he froze the
almost $400 million in foreign aid that was earmarked for Ukraine. Even though
the funds were congressionally appropriated, he decided to freeze them.
And in so doing, President Trump was accused of violating the Congressional
Budget and Impoundment Control Act of 1974, the exact one, the exact piece of
legislation that was signed into law by President Richard Nixon. And of course, he
was later impeached by the House over a phone call that he had with President
Zelensky concerning this particular money. However, according to Mr. Ross Vought,
who was, again, the director of the Office of Management and Budget under the Trump
administration, this was not technically an impoundment. Here's specifically what
he said regarding the freezing of their Ukrainian funds.
The reason why there wasn't an impoundment was because we did not have
the authority to just pocket the money and not spend it. If a new paradigm was
in place, the administration potentially would have the ability to go further and
pocket the money. Alright, just to pause here for a super quick moment, I'd like
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forward slash Roman, or just call 972-PATRIOT. And so with all this as the
general background, it appears that President Trump is making the
restoration of the Presidential Impoundment Authority one of the key
platforms that he's running on. For instance, in a campaign video that he
released over on social media, President Trump laid out his plan to restore this
authority in order to crush what he referred to as the deep state. Here's the
relevant part of that video. Here's under our system of government. It was
undisputed that the president had the constitutional power to stop unnecessary
spending through what is known as impoundment. Very simply, this meant that
if Congress provided more funding than was needed to run the government, the
president could refuse to waste the extra funds and instead return the money
to the general treasury and maybe even lower your taxes. Although we did give
you the biggest tax reduction in history, Thomas Jefferson famously used
this power, as did many other presidents, until it was wrongfully curtailed by
the Impoundment Control Act of 1974. Not a very good act. This disaster of a law
is clearly unconstitutional, a blatant violation of the separation of powers.
When I return to the White House, I will do everything I can to challenge the
Impoundment Control Act in court and, if necessary, get Congress to overturn it.
We will overturn it. I will then use the president's long-recognized impoundment
power to squeeze the bloated federal bureaucracy for massive savings. This
will be in the form of tax reductions for you. This will help quickly to stop
inflation and slash the deficit. To prepare for this eventuality, on day one,
I will order every federal agency to begin identifying large chunks of their
budgets that can be saved through efficiencies and waste reduction using
impoundment. And so that is the history of impoundment, how it came to be lost, as
well as the new push to restore it in order to essentially defund the federal
bureaucracy. However, doing this would not be a small feat because the bill that
Nixon signed into law, the Congressional Budget and Impoundment Control Act of
1974, would have to be either repealed by Congress, and good luck getting them to
give up any of their power, and so most likely it would have to be found
unconstitutional by the US Supreme Court. And so what would likely need to happen
is that a president, like President Trump, would need to try impoundment, he would
need to be accused of breaking the law, and then he would need to file a lawsuit
which would get taken up by the US Supreme Court. And then the highest court
in the land would have to ultimately determine whether or not this law was
constitutional in the first place. It would be an interesting process to watch
for sure, and it would have very, very far-reaching consequences, because if the
president is once again given discretion on whether or not to spend the
allocated money, well, on the one hand it would be a positive, because it would
create a check to balance the power that Congress has in regards to spending. But
on the flip side, it might grant the office of the presidency too much power.
As an example, what if President Trump decided to take the money that was
allocated or appropriated to the so-called Ministry of Truth, the
He might say that that particular agency is censoring the free speech of
Americans, and so despite the fact that Congress did allocate the funds, he was
just now willing to dole them out. He might agree with that decision. But
here's another hypothetical scenario. What if a president like Joe Biden had
that power right now? Congress, they might pass a law saying that the federal
government must fund programs that provide alternatives to abortion. But Joe
Biden might not agree with those programs, and he therefore might just
withhold the money from them and essentially starve them. And so you see,
this would be the double-edged blade of empowerment. It would give U.S.
presidents broad authority over what money was actually spent. Congress would
appropriate how much money could be spent on everything, but it would be the
president that would decide what is actually spent. And I would love to know
your thoughts. Do you think that the power of empowerment should be restored?
Do you think that overall it provides a good counterbalance to Congress? Or do
you think that it gives too much power to one single man? Please leave your
thoughts in the comment section below. I'll be reading through them today as
well as later this week. And also, while you're making your way down there to the
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