impoundment

Impoundment is the act of a president refusing to spend funds that Congress has appropriated by law. The Impoundment Control Act of 1974 (ICA), passed after President Nixon’s extensive impoundments, largely prohibits the practice. Under the ICA, the president may propose rescissions (permanent cancellations) or deferrals (temporary delays), but rescissions require congressional approval and deferrals are subject to congressional override. Courts have consistently held that the president lacks constitutional authority to unilaterally impound appropriated funds, as the power of the purse is vested exclusively in Congress under Article I.