Simone Lawson
The 'power of the purse' is a term used to describe the constitutional authority given to a group, typically a legislative body, to control the actions of another group by withholding or stipulating the use of funds. In the United States, the 'power of the purse' is vested in the Congress, as outlined in Article I, Section 9, Clause 7 (the Appropriations Clause) and Article I, Section 8, Clause 1 (the Taxing and Spending Clause) of the US Constitution. This power permits Congress to shape social projects and influence the federal government's objectives, acting as a check on the executive branch. The concept of the 'power of the purse' has its roots in British constitutional ideas, dating back to the Magna Carta in 1215 and further developed during the Glorious Revolution in 1689.
| Characteristics | Values |
|---|---|
| Country | United States |
| Group | Congress |
| Power | Control government spending |
| Control | Monetary aspects of the government |
| Legislative duty | Control and assume responsibility over the federal fisc |
| Purpose | Prevent monarchy and provide a check on the executive branch |
| Law | Antideficiency Act, Impoundment Control Act |
| Budget Impoundment and Control Act of 1974 | |
| Foreign Assistance Act of 1974 |
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What You'll Learn
The Power of the Purse is a defensive mechanism
The Power of the Purse is a critical concept in the political structure of the United States, and it acts as a defensive mechanism by providing a system of checks and balances on the executive branch. This power is vested in the Congress as laid down in the US Constitution, Article I, Section 9, Clause 7 (the Appropriations Clause) and Article I, Section 8, Clause 1 (the Taxing and Spending Clause).
The Power of the Purse refers to Congress's constitutional authority to control government spending and financial appropriations. This power allows Congress to decide how taxpayer money is used and to ensure legislative oversight of the executive branch, including the President. By withholding or stipulating the use of funds, Congress can influence federal government objectives and shape social projects.
One of the most prominent examples of the Power of the Purse in action is the Foreign Assistance Act of 1974, which eliminated all military funding for South Vietnam, effectively ending the Vietnam War. Congress has also used this power to compel US states to pass laws in areas where it does not have the constitutional power to act directly. For instance, Congress passed a law withholding 10% of federal funds for highways in states that did not raise the drinking age to 21, which was upheld by the Supreme Court in South Dakota v. Dole.
The Power of the Purse has been a critical tool for Congress to limit executive power and prevent federal agencies from misspending. However, over time, Presidents and agencies have pushed the boundaries of laws designed to prevent executive overreach. Reforms such as the Congressional Power of the Purse (CPP) Act aim to help Congress reclaim its constitutional spending authority and protect the separation of powers.
In summary, the Power of the Purse is a defensive mechanism for Congress to check the power of the executive branch and shape government objectives. This power has had significant historical impacts and remains a crucial aspect of US politics, influencing debates about the federal budget, policy priorities, and funding for government programs.
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It acts as a check on the executive branch
The power of the purse is vested in the Congress of the United States as per Article I, Section 9, Clause 7 (the Appropriations Clause), and Article I, Section 8, Clause 1 (the Taxing and Spending Clause) of the US Constitution. This power enables Congress to control the actions of another group by withholding or putting stipulations on the use of funds.
The power of the purse plays a critical role in the relationship between the US Congress and the President, acting as a check on the executive branch and limiting executive power. Congress has crafted laws like the Antideficiency Act and the Impoundment Control Act to prevent federal agencies from misspending.
Congress has used its power of the purse to pass laws that withhold funds from states that do not comply with certain policies. For example, Congress passed a law to withhold 10% of federal funds for highways in any state that did not raise the drinking age to 21. This law was upheld by the Supreme Court in the South Dakota v. Dole case. Similarly, in 2009, Congress considered legislation to withhold funds from states that did not pass laws regarding texting while driving.
The power of the purse has also been used to limit military funding, such as in the case of the Foreign Assistance Act of 1974, which eliminated military funding for South Vietnam, effectively ending the Vietnam War. Limitations on military funding have also been placed on presidents, such as Ronald Reagan, which led to the withdrawal of US Marines from Lebanon.
However, over time, presidents and agencies have pushed the boundaries of laws designed to prevent executive overreach, exploiting secrecy and limitations on enforcement to push their own agendas. For example, during the Iran-Contra affair in the 1980s, members of the Reagan administration set up elaborate corporate schemes and brokered illegal arms deals with Iran to generate unofficial funds that could not be regulated by Congress.
In recent cases, the power of the purse has been used to push back against executive overreach in spending. For instance, in 2016, a US district court judge held that the Obama administration was acting unlawfully in making CSR payments without a specific appropriation. In another case, the House and Senate negotiated a spending deal that included funding for border fencing, but President Trump declared a national emergency to use other money to accomplish the same goal.
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It can be used to compel US states to pass laws
The power of the purse is vested in the Congress of the United States as per Article I, Section 9, Clause 7 (the Appropriations Clause) and Article I, Section 8, Clause 1 (the Taxing and Spending Clause) of the US Constitution. This power allows Congress to control the actions of another group by withholding funding or putting stipulations on the use of funds.
Congress has used this power to compel US states to pass laws in areas where Congress does not have the desire or constitutional power to make it a federal matter. For instance, in the case of South Dakota v. Dole, Congress passed a law to withhold 10% of federal funds for highways in any state that did not raise the drinking age to 21. The law was upheld by the Supreme Court, despite the 21st Amendment granting control of alcohol to the states, because Congress could not directly change the drinking age. Similarly, in 2009, Congress considered legislation to withhold funding from states that did not pass laws regarding texting while driving.
The power of the purse has been a critical tool for Congress to limit executive power and protect against monarchy. It has been used to pass laws such as the Foreign Assistance Act of 1974, which ended the Vietnam War, and to place limitations on military funding for President Reagan, leading to the withdrawal of US Marines from Lebanon. Congress has also crafted laws like the Antideficiency Act and the Impoundment Control Act to prevent federal agencies from misspending.
However, over time, Presidents and agencies have pushed the boundaries of these laws, exploiting secrecy and enforcement limitations to further their agendas. The Congressional Power of the Purse (CPP) Act aims to help Congress reclaim its constitutional spending authority and safeguard the nation's separation of powers.
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It can be used to positively or negatively influence policy
The 'power of the purse' is a term used to describe the constitutional authority given to a group, often a legislative body, to control the actions of another group by withholding or stipulating the use of funds. In the United States, this power is vested in Congress, as outlined in the Constitution, specifically in Article I, Section 9, Clause 7 (the Appropriations Clause) and Article I, Section 8, Clause 1 (the Taxing and Spending Clause). This power allows Congress to shape social projects and influence federal government objectives, acting as a check on the executive branch.
The power of the purse can be used to positively or negatively influence policy. On the one hand, it can be used to incentivise and reward desirable behaviour or outcomes. For example, extra funding can be awarded to programs that reach certain benchmarks or perform well. This positive reinforcement can encourage the continuation and improvement of effective policies and initiatives. Additionally, the power of the purse can be used to compel compliance or cooperation by offering financial incentives for adopting specific policies or meeting agreed-upon targets.
On the other hand, the power of the purse can also be used to negatively impact or punish undesirable behaviour or outcomes. This can be done by reducing or eliminating funding for a department or program, effectively hindering its operations or even leading to its closure. For instance, during the Vietnam War, Congress, responding to public discontent, exercised its power of the purse by cutting off funding for the war, which ultimately led to the withdrawal of US troops. Similarly, in 1974, Congress passed the Foreign Assistance Act, which eliminated military funding for the South Vietnamese government, ending the war.
Furthermore, the power of the purse can be used to influence policy by setting conditions or stipulations on the use of funds. This can be seen as a form of bargaining or negotiation, where certain requirements must be met to receive funding. For example, in the case of South Dakota v. Dole, Congress passed a law to withhold 10% of federal funds for highways in any state that did not raise the drinking age to 21. This use of the power of the purse allowed Congress to influence state-level policy without directly making it a federal matter.
While the power of the purse is intended to maintain a balance of power and prevent executive overreach, there have been instances where Presidents have challenged this constraint. For example, President Nixon attempted to impound appropriated funds, refusing to spend money allocated by Congress for specific purposes. This led to Congress passing the Budget Impoundment and Control Act of 1974 to reclaim its constitutional authority.
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It is a cornerstone principle in democratic governments
The 'power of the purse' is the ability of a group to control the actions of another group by withholding or stipulating the use of funds. In a democratic government, this power is typically vested in the legislature or parliament, which can use it to control the executive branch. This power is a cornerstone principle in democratic governments because it ensures a balanced power structure and acts as a check on the executive branch.
The concept of the 'power of the purse' has its roots in British constitutional ideas, dating back to the Magna Carta of 1215, where King John of England promised not to levy certain taxes without the consent of the kingdom's barons. This early assertion of controlling public finances can be seen as a predecessor to the modern concept of the 'power of the purse'. The idea was further developed during the 'Glorious Revolution' in 1689, when the monarchy's power was transferred to parliament.
In the United States, the 'power of the purse' is vested in Congress, as laid down in the Constitution, Article I, Section 9, Clause 7 (the Appropriations Clause), and Article I, Section 8, Clause 1 (the Taxing and Spending Clause). This power plays a critical role in the relationship between Congress and the President and has been the main tool by which Congress has limited executive power. For example, during the Vietnam War, Congress responded to public discontent by passing the Case-Church Amendment in 1973, which prohibited further US military activity in Vietnam, Laos, and Cambodia without specific Congressional approval. As a direct exercise of the 'power of the purse', Congress cut off funding for the war, effectively ending it and leading to the withdrawal of US troops.
The 'power of the purse' can also be used to compel states to pass laws in cases where Congress does not have the constitutional power to make it a federal matter. For example, Congress passed a law withholding 10% of federal funds for highways in any state that did not raise the drinking age to 21. This law was upheld by the Supreme Court in the South Dakota v. Dole case.
The 'power of the purse' is a significant aspect of democratic governments as it ensures that the group controlling the finances has a say in how the money is spent. This power can be used to shape public policies, growth, inflation, unemployment rates, and other socio-economic indicators. It also helps evaluate the efficiency of government policies.
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Frequently asked questions
The power of the purse is given to Congress.
The power of the purse is the ability to control the actions of another group by withholding or stipulating funding.
The concept of the power of the purse has its roots in British constitutional ideas, specifically in the Magna Carta of 1215, where King John of England promised not to levy certain taxes without the consent of the kingdom's barons. The idea was further developed in 1689 during the Glorious Revolution, when the monarchy's power was transferred to Parliament.
In the US, the power of the purse is outlined in Article I, Section 9, Clause 7 (the Appropriations Clause) and Article I, Section 8, Clause 1 (the Taxing and Spending Clause) of the US Constitution. This power permits Congress to shape social projects and influence the federal government's objectives by controlling government spending.
One example of the power of the purse being used in the US is the Foreign Assistance Act of 1974, which eliminated all military funding for the government of South Vietnam and ended the Vietnam War. Another example is when Congress placed limitations on military funding for Ronald Reagan, leading to the withdrawal of US Marines from Lebanon.
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