Of all the powers the Constitution gives Congress, the power of the purse may be the most important.
Article I, Section 9 states: “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.” The executive branch can spend only what Congress has approved, for the purposes Congress approved. James Madison called this power “the most complete and effectual weapon” the people’s representatives could hold.
How the Process Is Supposed to Work
- First Monday in February: The President submits a budget request. It is a proposal, not a law
- Spring: Congress is supposed to adopt a budget resolution setting overall spending limits
- Summer: The House and Senate Appropriations Committees, each with 12 subcommittees, write 12 regular appropriations bills covering discretionary spending
- By October 1: The new fiscal year begins, and all 12 bills are supposed to be enacted
In practice, Congress has rarely passed all 12 bills on time. It usually relies on a continuing resolution (CR), a temporary law that keeps funding at roughly the prior year’s levels, or packages many bills into one large “omnibus.”
Why Shutdowns Happen
If no appropriation or CR is in place, the Antideficiency Act generally prohibits agencies from spending money or accepting voluntary services. Agencies must stop non-essential work and furlough employees. Activities involving the safety of human life or protection of property continue, and programs with permanent funding, such as Social Security benefit payments, keep going.
Mandatory vs. Discretionary Spending
Annual appropriations cover only discretionary spending, roughly a quarter of the federal budget. Programs such as Social Security, Medicare and interest on the debt are mandatory spending, paid automatically under existing law unless Congress changes it.
Can the President Refuse to Spend?
The Impoundment Control Act of 1974 limits the President’s ability to withhold appropriated funds. The President may propose rescissions, but if Congress does not approve them within 45 days of continuous session, the money must be released. The Government Accountability Office monitors compliance.
Why It Matters
Every federal priority, from veterans’ care to border security, runs through this process. When Congress governs by deadline and stopgap, agencies cannot plan and citizens lose the ability to see clearly where their money goes.
Keep Digging With Truth Agent
This article is a starting point. Truth Agent puts the public record at your fingertips, including the Constitution, federal law, regulations, court opinions and oversight reports, so you can follow appropriations bills, continuing resolutions and agency budgets line by line without relying on anyone’s summary, including ours.
