July 7, 1986court rulingfederal budgetseparation of powersfiscal policyconstitutional lawseparation of powersfederal budgetjudiciary
SCOTUS Strikes Gramm-Rudman Deficit Law in Bowsher v. Synar
The Supreme Court ruled 7-2 on July 7, 1986, in Bowsher v. Synar that the Gramm-Rudman-Hollings Balanced Budget Act was unconstitutional because it assigned spending-cut authority to the Comptroller General, an officer removable by Congress rather than the president. The Court held that Congress cannot vest executive powers in an officer it controls. The ruling constrained congressional attempts to create automatic budget mechanisms and reinforced separation of powers in fiscal policy.