Congress passes Impoundment Control Act after Nixon withholds over $10 billion in congressionally appropriated funds

Congress passed the Congressional Budget and Impoundment Control Act of 1974 over President Nixon's veto, responding to Nixon's practice of withholding billions in congressionally appropriated funds from social programs he opposed. Nixon had frozen more than $10 billion in appropriations — concentrated in housing, education, and environmental programs Democrats favored — without informing Congress or the public of the full extent. Courts had compelled the release of impounded funds in dozens of suits. The Act prohibited presidents from impounding funds without congressional approval, dividing impoundments into rescissions (requiring affirmative congressional approval within 45 days) and deferrals (subject to congressional override). It established the modern constitutional framework for executive spending control — the same framework that constrains executive threats to redirect or withdraw congressionally authorized services.