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Impoundment Control Act Resources

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Overview

The framers vested Congress with the power of the purse by providing in the U.S. Constitution that “[n]o Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.” U.S. Const., art. 1, § 9, cl. 7. This arrangement ensures that the government remains accountable to the will of the people and provides a key check on the power of the other branches. 

In 1974, Congress enacted the Impoundment Control Act in response to attempts by the executive branch to refuse to spend congressionally appropriated funds. The act operates on the constitutional premise that the President must obligate funds appropriated by Congress, unless otherwise authorized to withhold them. The act permits the President to temporarily impound—i.e., withhold the obligation or expenditure of—appropriated funds in certain circumstances if the President notifies the Congress by transmitting a “special message.”

The Impoundment Control Act provides for two types of impoundments: deferrals and rescissions. 2 U.S.C. §§ 683(a), 684(a).

Deferral:

  • A deferral occurs when an agency temporarily withholds funds from obligation or expenditure. 2 U.S.C. §§ 682(1), 684.
  • 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. 2 U.S.C. § 684(b).
  • A deferral may not extend beyond the end of the fiscal year in which it is proposed. 2 U.S.C. § 684(a).

Rescission:

  • A rescission is the proposed cancellation of budget authority that has been provided by Congress before that authority would otherwise expire.
  • The President may propose a rescission for policy or other reasons. 2 U.S.C. § 683(a).
  • Once a recission is proposed to Congress, the President can withhold the budget authority for 45 days while Congress is in continuous session. Unless Congress completes action on a rescission bill to approve the proposed rescission within that time, the budget authority must be made available for obligation. 2 U.S.C. §§ 682(3), 683(b), 688.

GAO’s Responsibilities Under the Impoundment Control Act

  • The Comptroller General is required to review each special message and report the findings to Congress as soon as practicable. The Comptroller General also ensures that the impoundment is not misclassified, such as a rescission proposal reported as a deferral. 2 U.S.C. § 685(b), 686(b).
  • The Comptroller General must also report to Congress if the President has failed to report an impoundment to Congress in a special message as required. 2 U.S.C. § 686(a).
  • If an agency does not release budget authority for the obligation, the Comptroller General may bring a civil action in the U.S. District Court for the District of Columbia to compel such action. 2 U.S.C. § 687.

GAO’s Work on Impoundment Issues

  • GAO responds to requests for technical assistance from Congress.
  • GAO provides informal technical assistance to federal agencies.
  • GAO issues legal decisions on impoundment issues in response to Congress or by request of a federal agency. 

Highlights of Significant Issues in Impoundment Work

  • GAO Participation in Impoundment Control Act Processes: GAO plays a role in Impoundment Control Act processes by, among other things, reviewing and reporting on special messages transmitted to Congress by a President and notifying agencies when funds may not be withheld under the Impoundment Control Act.
    • For example, see B-330045, May 22, 2018, Impoundment Control Act of 1974: Review of the President’s Special Message of May 8, 2018; B-330045.1, May 24, 2018, Impoundment Control Act of 1974: Release of Certain Withheld Amounts; B-330045.3, Jul. 3, 2018, Impoundment Control Act of 1974--Release of Withheld Amounts Due to Expiration of 45-day Period
  • GAO Legal Decisions on Impoundment Issues: GAO issues legal decisions on impoundment issues in response to requests by Congress or federal agencies. Recent decisions have addressed topics such as:
    • Whether agency actions constitute an impoundment or a programmatic delay. For example, see B-333110, Jun. 15, 2021, Office of Management and Budget and U.S. Department of Homeland Security – Pause of Border Barrier Construction and Obligations; B-335747, Apr. 22, 2024, Department of Homeland Security – Border Barrier Construction and Obligations
    • Whether the Impoundment Control Act allows an impoundment when fixed-period appropriations would expire during the 45-day period in which funds proposed for rescission may be withheld while Congress considers a rescission proposal. For example, see B-330330, Dec. 10, 2018, Impoundment Control Act--Withholding of Funds Through Their Date of Expiration
    • Whether a delay in filling vacant positions constitutes an impoundment. For example, see B-331298, Dec. 23, 2020, Department of Commerce—Application of the Impoundment Control Act to Appropriations Enacted in Fiscal Years 2018 and 2019

Additional Information

For more information on the Impoundment Control Act's purpose, history, and requirements, see Red Book Chapter 2, The Legal Framework: Principles of Federal Appropriations Law: Fourth Edition, GAO-16-464SP, 2016

For definitions of key terms, including obligation and expenditure, see the Federal Budget Glossary, GAO-05-734SP, 2005.

 

Questions?

For inquiries about the act, send an e-mail to Impoundments@gao.gov.

Recent Impoundment Control Act Decisions

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