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Budget and Impoundment Act of 1974

Rational

Basics

July 12, 1974, Congress overrode Nixon's veto

Congress felt that Nixon was abusing his power to impound appropriations of programs he opposed

Congress was controlled by Democrats

Strengthen and centralize Congress' budget authority

Main sponsor was Senator Al Ullman

The new budget committee was required to pass a concurrent budget resolution (to be passed by Congress no later than May 15) outlining the government's overall expenditures and receipts, based in CBO estimates

Amended

The Act has been amended several times, through provision in the Balanced Budget and Emergency Deficit Control Act of 1985, the Budget Enforcement Act of 1997, and the Balanced Budget Act of 1990, however the original legislation remains the basic blueprint for budget procedures

Bibliography

"1974 Congressional Budget and Impoundment

Control Act." 1974 Budget and Impoundment Control Act. N.p., n.d. Web. 04 Feb. 2014.

This all happened because

What it did

Nixon claimed he was trying to cut the deficit

Modified the role of Congress in the Budgetary process

In the 1972 presidential election, he called on Congress to grant the President authority to cut federal spending to keep the budget under control

Created Budget committees in the House and the Senate

Established the congressional Budget Office (CBO)

Moved the fiscal year from July 1st to October 1st

Congress said no, and in 1972 created the Joint Study Committee on the Budget Control which would allow Congress to examine the federal budge from an "overall point of view, together with a congressional system of deciding petitions"

Train v The City of New York

Nixon was under the impression that the administration was not obligated to disburse all funds allocated by Congress to states seeking federal monetary assistance under Water Pollution Control Act of 1972 and ordered the impoundment of 12 billion dollars of environmental protection funds for a program he vetoed, and which had been overridden by Congress

Court ruled that the president could not order the impoundment of substantial amounts of environmental protection funds for a program through impoundment

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