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The executive branch

impoundment

A President declining to spend money Congress appropriated. Sharply limited since 1974: withholding now requires notifying Congress, and permanent cancellation requires its approval.

In full

After Nixon impounded funds for programs he opposed, Congress passed the Impoundment Control Act. It splits the practice in two: a rescission proposal withholds money for up to 45 days and dies unless Congress enacts it, and a deferral delays spending within a fiscal year for stated reasons. The Government Accountability Office polices the line and reports violations.

Also written as: deferral

Where to go next

Written from GAO, Glossary of Terms Used in the Federal Budget Process

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A plain-language explanation for civic education, not legal advice. When in doubt, the official source named above controls.