Power of the purse
Encyclopedia
The power of the purse is the ability of one group to manipulate
and control the actions of another group by withholding funding, or putting stipulations on the use of funds. The power of the purse can be used to save their money and positively (e.g. awarding extra funding to programs that reach certain benchmarks) or negatively (e.g. removing funding for a department or program, effectively eliminating it). The power of the purse is most often utilized by forces within a government that do not have direct executive power
but have control over budgets and taxation.
was limited in his powers to engage in various war efforts by a refusal by Parliament to levy further taxes and his inability to secure loans from foreign nations, making him much less powerful.
and the President of the United States
, and has been the main historic tool by which Congress can limit executive power. One of the most recent examples is the Foreign Assistance Act of 1974, which eliminated all military funding for the government of South Vietnam
and effectively ended the Vietnam War
. Other recent examples include limitations on military funding placed on Ronald Reagan
by Congress, which led to the withdrawal of United States Marines from Lebanon. Appropriation
bills cannot originate in the Senate, but the Senate can amend appropriation bills that originate in the House.
Although it is famously used today by Congress to limit the power of the executive in military affairs, it was once a larger power. Congress used the power of the purse to choose whether to appropriate funding to any area which the executive might desire. If the executive wanted to spend money, Congress would have to write a bill, pass that bill into law, and appropriate the funds for it. This was the check of the legislative upon the executive authority in domestic as well as foreign affairs. However, after the Great Depression
and the passage of the National Industrial Recovery Act
, bureaus and agencies were created by the executive, with enough spending power that the Congress no longer held the reins of power over domestic spending. Other laws were passed allowing the new bureaus to pass their own directives within a wide sphere of authority. Because of the far reach of these agencies, the domestic power of the purse check is less prominent today, but remains influential in the daily execution of federal funds.
The power of the purse in military affairs was famously subverted during the Iran-Contra scandal in the 1980s. Congress denied further aid to the Contras
in Nicaragua
. Unwilling to accept the will of Congress, members of the Reagan Administration
solicited private donations, set up elaborate corporate schemes and brokered illegal arms deals with Iran in order to generate unofficial funds that could not be regulated by Congress.
Presently, budget limitations and using the power of the purse form a controversial part of discussion regarding Congressional opposition to the Iraq War. On March 23, 2007, the U.S. House of Representatives passed a supplemental war budget that imposed a timeline on the presence of American combat troops in Iraq, but the legislation was not passed.
The power of the purse has also been used to compel the U.S. state
s to pass laws, in cases where Congress does not have the desire or constitutional power to make it a federal matter. The most well-known example of this is regarding the drinking age, where Congress passed a law to withhold federal funds for highways in any state that did not raise the age to 21. Congress was not allowed to pass the law itself because the 21st Amendment
(which ended Prohibition
in the U.S.) gave control of alcohol to the states. In 2009, Congress has also considered similar legislation regarding texting while driving
.
funding to a senator or other delegate or representative, or deny his or her appropriations bill or amendment a vote, because he or she refused to support a bill which the chairperson wanted (a tit-for-tat retaliation).
The administration or student government at a college or university may revoke some or even all funding for a student newspaper or student radio station, because it has printed or aired an article or editorial critical of it. This is also an example of censorship.
Psychological manipulation
Psychological manipulation is a type of social influence that aims to change the perception or behavior of others through underhanded, deceptive, or even abusive tactics. By advancing the interests of the manipulator, often at the other's expense, such methods could be considered exploitative,...
and control the actions of another group by withholding funding, or putting stipulations on the use of funds. The power of the purse can be used to save their money and positively (e.g. awarding extra funding to programs that reach certain benchmarks) or negatively (e.g. removing funding for a department or program, effectively eliminating it). The power of the purse is most often utilized by forces within a government that do not have direct executive power
Executive Power
Executive Power is Vince Flynn's fifth novel, and the fourth to feature Mitch Rapp, an American agent that works for the CIA as an operative for a covert counter terrorism unit called the "Orion Team."-Plot summary:...
but have control over budgets and taxation.
In the United Kingdom
The power of the purse's earliest examples in a modern sense is by the English Parliament, which was given the exclusive power to levy taxes and thus could control the nation's cash flow. Through this power, Parliament slowly subverted the executive strength of the crown; King Charles IICharles II of England
Charles II was monarch of the three kingdoms of England, Scotland, and Ireland.Charles II's father, King Charles I, was executed at Whitehall on 30 January 1649, at the climax of the English Civil War...
was limited in his powers to engage in various war efforts by a refusal by Parliament to levy further taxes and his inability to secure loans from foreign nations, making him much less powerful.
In the United States
The power of the purse plays a critical role in the relationship of the United States CongressUnited States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
and the President of the United States
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
, and has been the main historic tool by which Congress can limit executive power. One of the most recent examples is the Foreign Assistance Act of 1974, which eliminated all military funding for the government of South Vietnam
South Vietnam
South Vietnam was a state which governed southern Vietnam until 1975. It received international recognition in 1950 as the "State of Vietnam" and later as the "Republic of Vietnam" . Its capital was Saigon...
and effectively ended the Vietnam War
Vietnam War
The Vietnam War was a Cold War-era military conflict that occurred in Vietnam, Laos, and Cambodia from 1 November 1955 to the fall of Saigon on 30 April 1975. This war followed the First Indochina War and was fought between North Vietnam, supported by its communist allies, and the government of...
. Other recent examples include limitations on military funding placed on Ronald Reagan
Ronald Reagan
Ronald Wilson Reagan was the 40th President of the United States , the 33rd Governor of California and, prior to that, a radio, film and television actor....
by Congress, which led to the withdrawal of United States Marines from Lebanon. Appropriation
Appropriation (law)
In law and government, appropriation is the act of setting apart something for its application to a particular usage, to the exclusion of all other uses....
bills cannot originate in the Senate, but the Senate can amend appropriation bills that originate in the House.
Although it is famously used today by Congress to limit the power of the executive in military affairs, it was once a larger power. Congress used the power of the purse to choose whether to appropriate funding to any area which the executive might desire. If the executive wanted to spend money, Congress would have to write a bill, pass that bill into law, and appropriate the funds for it. This was the check of the legislative upon the executive authority in domestic as well as foreign affairs. However, after the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
and the passage of the National Industrial Recovery Act
National Industrial Recovery Act
The National Industrial Recovery Act , officially known as the Act of June 16, 1933 The National Industrial Recovery Act (NIRA), officially known as the Act of June 16, 1933 The National Industrial Recovery Act (NIRA), officially known as the Act of June 16, 1933 (Ch. 90, 48 Stat. 195, formerly...
, bureaus and agencies were created by the executive, with enough spending power that the Congress no longer held the reins of power over domestic spending. Other laws were passed allowing the new bureaus to pass their own directives within a wide sphere of authority. Because of the far reach of these agencies, the domestic power of the purse check is less prominent today, but remains influential in the daily execution of federal funds.
The power of the purse in military affairs was famously subverted during the Iran-Contra scandal in the 1980s. Congress denied further aid to the Contras
Contras
The contras is a label given to the various rebel groups opposing Nicaragua's FSLN Sandinista Junta of National Reconstruction government following the July 1979 overthrow of Anastasio Somoza Debayle's dictatorship...
in Nicaragua
Nicaragua
Nicaragua is the largest country in the Central American American isthmus, bordered by Honduras to the north and Costa Rica to the south. The country is situated between 11 and 14 degrees north of the Equator in the Northern Hemisphere, which places it entirely within the tropics. The Pacific Ocean...
. Unwilling to accept the will of Congress, members of the Reagan Administration
Reagan Administration
The United States presidency of Ronald Reagan, also known as the Reagan administration, was a Republican administration headed by Ronald Reagan from January 20, 1981, to January 20, 1989....
solicited private donations, set up elaborate corporate schemes and brokered illegal arms deals with Iran in order to generate unofficial funds that could not be regulated by Congress.
Presently, budget limitations and using the power of the purse form a controversial part of discussion regarding Congressional opposition to the Iraq War. On March 23, 2007, the U.S. House of Representatives passed a supplemental war budget that imposed a timeline on the presence of American combat troops in Iraq, but the legislation was not passed.
The power of the purse has also been used to compel the U.S. state
U.S. state
A U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...
s to pass laws, in cases where Congress does not have the desire or constitutional power to make it a federal matter. The most well-known example of this is regarding the drinking age, where Congress passed a law to withhold federal funds for highways in any state that did not raise the age to 21. Congress was not allowed to pass the law itself because the 21st Amendment
Twenty-first Amendment to the United States Constitution
The Twenty-first Amendment to the United States Constitution repealed the Eighteenth Amendment to the United States Constitution, which had mandated nationwide Prohibition...
(which ended Prohibition
Prohibition
Prohibition of alcohol, often referred to simply as prohibition, is the practice of prohibiting the manufacture, transportation, import, export, sale, and consumption of alcohol and alcoholic beverages. The term can also apply to the periods in the histories of the countries during which the...
in the U.S.) gave control of alcohol to the states. In 2009, Congress has also considered similar legislation regarding texting while driving
Texting while driving
Texting while driving is the act of composing, sending, reading text messages, email, or making other similar use of the web on a mobile phone while operating a motor vehicle. The practice has been viewed by many people and authorities as dangerous. It has also been ruled as the cause of some motor...
.
Other uses
The chairperson of a legislative committee may refuse to give pork barrelPork barrel
Pork barrel is a derogatory term referring to appropriation of government spending for localized projects secured solely or primarily to bring money to a representative's district...
funding to a senator or other delegate or representative, or deny his or her appropriations bill or amendment a vote, because he or she refused to support a bill which the chairperson wanted (a tit-for-tat retaliation).
The administration or student government at a college or university may revoke some or even all funding for a student newspaper or student radio station, because it has printed or aired an article or editorial critical of it. This is also an example of censorship.