Congressional Budget and Impoundment Control Act signed into law

President Gerald Ford signed the Congressional Budget and Impoundment Control Act on July 12, 1974. The law directly responded to President Nixon impounding over $10 billion in congressionally appropriated funds without authorization. Nixon used impoundment to override spending priorities Congress had enacted into law. The ICA made presidential impoundment illegal, required the executive to spend funds as Congress directed, and created a formal process for any rescissions — subject to congressional approval. It also created the Congressional Budget Office.