Nixon Withholds $12 Billion in Congressionally Appropriated Funds

President Nixon refused to spend approximately $12 billion in funds that Congress had appropriated for housing, environmental, and education programs between 1972 and 1974, asserting an executive right to "impound" appropriated funds rather than spend them as directed. Federal courts and Congress repeatedly rejected his impoundment claims, ruling that the president had no constitutional authority to unilaterally refuse to execute spending laws. The standoff directly triggered the Impoundment Control Act of 1974.