Isabella Carter
The US Constitution's Appropriations Clause gives Congress the power of the purse, establishing a legislative duty for Congress to control and assume responsibility for the federal fisc. This clause is a check on executive power, requiring legislative appropriation before public funds are spent. The Spending Clause grants Congress the authority to identify expenditures that further the general welfare, and it has been used to pursue broad policy objectives. However, the Court has also articulated limitations on spending power, such as ensuring voluntary acceptance of funding conditions. The Tenth Amendment generally allows state governments to enact regulations without federal interference, but Congress can incentivize states to follow federal policies.
| Characteristics | Values |
|---|---|
| Spending Clause | Allows Congress to pursue broad policy objectives, including objectives that it could not achieve by legislating under its other enumerated powers. |
| Allows Congress to incentivize states to act according to federal policies. | |
| Does not allow Congress to require states to regulate in a certain way. | |
| Does not allow Congress to indirectly regulate something it does not have the direct power to regulate. | |
| Appropriations Clause | Establishes a rule of law to govern money contained in the Treasury. |
| Requires legislative appropriation before public funds are spent. | |
| Requires Congress to exercise control and assume responsibility over the federal fisc. | |
| Requires Congress to specify the objects, amounts, and timing of federal spending. |
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What You'll Learn
Spending Clause
The Spending Clause, also known as the Taxing and Spending Clause, is a provision in Article I, Section 8, Clause 1 of the US Constitution. It grants Congress the power to "lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States".
The interpretation of the Spending Clause has been a source of debate since the inception of the federal government. Initially, the Supreme Court imposed a narrow interpretation of the Clause, but this view was overturned in 1936 in United States v. Butler. The Court held that the power to tax and spend is an independent power, and the General Welfare Clause grants Congress power it might not derive from anywhere else.
In the 1930s, the Supreme Court embraced a broad view of Congress's discretion under the Spending Clause, allowing Congress to pursue broad policy objectives. The Spending Clause has been construed as legislative authority for consequential federal programs such as Social Security, Medicaid, and federal education programs.
However, the Court has also articulated restrictions on the spending power. These include factors that ensure the knowing and voluntary acceptance of funding conditions, such as the Clear Notice Requirement and the Anti-Coercion Requirement.
The Spending Clause has been invoked in various legal disputes, such as South Dakota v. Dole, where the Court upheld a federal law withholding highway funds from states that did not raise their minimum legal drinking age to 21, and in challenges to the constitutionality of the Affordable Care Act (ACA).
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Congressional spending and borrowing power
The US Constitution places the
The Spending Clause grants Congress the power to pursue broad policy objectives by offering federal funds in exchange for certain conditions. For example, Congress can incentivize states to act according to federal policies, but not by compelling them to regulate in a certain way, as this would violate the Tenth Amendment. The Supreme Court embraced a broad view of Congress's discretion in the 1930s, but has since articulated restrictions on the spending power. These include factors that ensure the knowing and voluntary acceptance of funding conditions.
Congress has used the Spending Clause to legislate federal programs such as Social Security, Medicaid, and federal education programs. The scope of Congress's spending power was a point of dispute among key members of the founding generation, and these disputes persisted throughout the nineteenth century.
Congress's spending power is limited by the requirement that appropriations specify the powers, activities, and purposes for which the funds may be used. This is known as the "objects" requirement. Congress has created spending authority with "amount" and "time" limitations, but also without effective "object" limitations, where agencies have broad discretionary authority in particular policy areas.
Congress's power to borrow money is granted by Article 1, Section 9, Clause 2 of the Constitution.
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Power of the purse
The Constitution grants Congress the "power of the purse", also known as the Spending Clause or the Appropriations Clause. This power is derived from Article I, Section 8, Clause 1 of the Constitution, which states that Congress has the authority to “lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States".
The Spending Clause gives Congress the ability to fund federal programs such as Social Security, Medicaid, and federal education initiatives. It also allows Congress to pursue broad policy objectives and exchange federal funds for recipients agreeing to honour certain conditions. For example, in 1984, Congress passed the National Minimum Drinking Age Act, which directed the Secretary of Transportation to withhold federal highway funds from states that allowed individuals under 21 to purchase alcohol.
The Appropriations Clause, on the other hand, acts as a check on executive power by requiring legislative appropriation before public funds can be spent. This clause is not a grant of legislative power but a limitation on government action. It establishes that no money can be withdrawn from the Treasury without an act of Congress specifying the objects, amounts, and timing of federal spending.
While Congress has significant discretion in identifying expenditures, the Court has also articulated restrictions on its spending power. These include factors such as ensuring the voluntary and knowing acceptance of funding conditions by recipients. Additionally, the Tenth Amendment generally prohibits Congress from requiring states to regulate in a certain way, maintaining state governments' independence in enacting regulations and laws.
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Appropriations Clause
The Appropriations Clause, outlined in Article I, Section 9, Clause 7 of the US Constitution, establishes a rule of law to govern money contained in the Treasury. The Clause states that:
> No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time.
This means that no money can be paid out of the Treasury unless it has been appropriated by an act of Congress. The Clause does not confer a distinct legislative power upon Congress but is instead phrased as a limitation on government action. It restricts the disbursing authority of the Executive department, ensuring that only Congress can authorise the withdrawal of funds from the Treasury.
The Appropriations Clause has roots in the practice of English parliaments, dating back to at least the 1690s, where they legislated both the means of raising public revenue and the dedication of newly raised sums to particular purposes. This practice was continued in state constitutions after American Independence, with most expressly identifying an appropriation as a necessity for drawing funds from a state treasury. By the late 1780s, the proposition that a legislature should control the disbursement of public funds was firmly established, and the Appropriations Clause attracted relatively little debate during its drafting and ratification.
The Court has recognised that Congress has wide discretion in prescribing the details of expenditures for which it appropriates funds. The Court has approved the frequent practice of making "lump sum" appropriations, or general appropriations of large amounts to be allotted and expended as directed by designated government agencies.
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Taxation
The US Constitution grants Congress the power to "lay and collect taxes" under Article I, Section 8, Clause 1, also known as the Taxing Clause. This clause provides Congress with broad authority to levy and collect taxes for federal debts, common defence, and general welfare. The power to tax is essential for any government to function effectively, as it provides the necessary resources to police citizens, protect against foreign threats, and regulate commerce.
The Taxing Clause addressed a critical issue under the Articles of Confederation, where the national government lacked the power to tax individuals directly, resulting in challenges in funding the government and addressing national security concerns. The Taxing Clause empowers Congress to impose taxes, duties, imports, and excises, with "direct" taxes apportioned based on state populations.
While Congress has substantial discretion over taxation, judicial decisions have occasionally curtailed its taxing power. For instance, in Bailey v. Drexel Furniture Co. (1922), the Court rejected a 10% tax on companies employing child labour, deeming it a penalty beyond Congress's authority. Similarly, in United States v. Constantine (1935), the Court struck down a federal excise tax on liquor dealers, finding it punitive rather than revenue-raising.
The Spending Clause, also part of Article I, Section 8, Clause 1, grants Congress the power to appropriate funds for the "common Defence and general Welfare of the United States." This clause has been pivotal in modern case law, with the Court interpreting it as the legislative authority for significant federal programs such as Social Security. However, the Court has also imposed limitations on Congress's spending power, particularly regarding the voluntary acceptance of funding conditions and ensuring states' informed consent.
The Sixteenth Amendment, ratified in 1913, further contributed to the federal government's taxation authority by establishing an income tax. This amendment marked a shift in how the federal government received funding, with the subsequent enactment of the Revenue Act of 1913. The introduction of an income tax was a key goal for progressive groups advocating for a fairer distribution of taxation obligations.
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Frequently asked questions
The Spending Clause grants Congress the power to fund federal programs such as Social Security, Medicaid, and federal education programs.
The scope of Congress's spending power is broad, allowing them to pursue policy objectives that they couldn't achieve through their other enumerated powers. However, this power is not unlimited, and Congress cannot use it to indirectly regulate areas they don't have direct power over.
Yes, Congress can incentivize states to act according to federal policies by offering funds in exchange for agreeing to certain conditions. However, this cannot amount to "compulsion", as it would violate the system of federalism.
The Appropriations Clause establishes that no money can be withdrawn from the Treasury unless it has been appropriated by an act of Congress. This clause is a legislative duty that gives Congress control over the federal fisc and acts as a check on Executive power.
