Social Question

janbb's avatar

Who controls the money in the Federal government?

Asked by janbb (63393points) 3 days ago

I realize this is a naive question. I always learned that Congress has the power of the purse but Trump feels like he can take away money from institutions at will.

“The art of the deal” indeed!

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8 Answers

SQUEEKY2's avatar

You have to remember Trump is above all laws ,your corrupt supreme court made it so.

seawulf575's avatar

It’s a bit of both. Congress has the power of the purse. They are on the hook for all budgetary issues. However, the Executive Branch does have the ability to limit the spending. The Constitution gives the power over spending money to the Legislative Branch. However the Constitution also gives the Executive the responsibility to ensure the money is being allocated and spent in accordance with the law. In 1974, Congress passed the Congressional Budget and Impoundment Control Act to further define those abilities the POTUS controls. Effectively the POTUS can defer or rescind payments that are allocated but there are stipulations with both of those actions.

So it is really both. Confusing? You bet. That’s why bigger government is not better government. They get their fingers into to many pieces of the pie and it starts getting sticky.

elbanditoroso's avatar

The real answer – No one.

@seawulf575 is correct as to formalities of things.

But the bottom line is that the Dept of Treasury / Disbursement division (or something like that) actually writes the checks or does the deposits. They work on the basis of payment vouchers from the various departments. And the departments are (guess what!) political.

So you can have a theoretical framework that can be short-circuited by politicians.

The difference this time is that politicians are not respecting the time-honored rules of action, in order to press their liberal agenda.

So much for being conservatives. The current DOGE group is more radical than Bernie Sanders every hoped to be.

zenvelo's avatar

@seawulf575 ”... ensure the money is being allocated and spent in accordance with the law. In 1974, Congress passed the Congressional Budget and Impoundment Control Act to further define those abilities the POTUS controls”.

That law was passed because Nixon would not spend money that had been approved by Congress and signed into law as the budget. Trump is being sued in Federal Court for violating that law; he has cut funding to programs approved and budgeted by Congress.

But since he finds himself above the law and not bound by the Constitution or needing to heed the Courts, we are in our current crisis.

filmfann's avatar

The power of the purse belongs to Congress.
Currently, Congress is ceding that control to the White House.

KRD's avatar

It is mostly controlled by the President and congress both.

Caravanfan's avatar

Well the Federal Reserve controls how much money is released into circulation and how expensive it becomes to borrow money. The Congress controls how that money will be allocated and the President controls how it will be spent.

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