Can Wasteful Spending be Mandatory?

 

In the current state of things, a normal president (i.e., almost anyone but Trump) and a normal Congress (with either party in the majority) could and would say there is just nothing we can do because the federal government is just so large, complex, specialized and wired into so many interest groups that we do not have the time or political capital to reign it in and pare it down.

It is near-miraculous that this actual reform and reduction are even being attempted. But could a lawfare campaign kill it?

In the skirmishes at the federal district court level, judge-shopping and legal ambiguities have given some small victories for the pro-waste/fraud/abuse/grift side.  It is important that the proper issues get shaped for appellate review to give SCOTUS a shot at clarifying a vital constitutional issue.  If it is instead only about the Trump Administration failing to touch all the bases, resulting in violating some civil service technicalities, the left could win a strategic victory by achieving a sizeable delay.

If, instead, the issue before SCOTUS is about finally delineating the constitutional powers of the executive branch with respect to the uses and non-use of appropriated funds, it could permit a rollback of the federal leviathan and a return to democratic rule. Rather than a loss of turf for Congress, this could result in more congressional control over the bureaucracies to which it has largely surrendered.

If it were expressly tested and brought before SCOTUS, I think there is a good chance the 1974 Impoundment Control Act (the President may not refuse to spend money appropriated by Congress) would be found unconstitutional.  But there is still a lot of gray area.

It is elementary school Civics 101 that POTUS may not spend money that Congress did not authorize nor spend funds on some entirely separate purpose contrary to the express will of Congress.  It is also clear that Congress cannot micromanage how funds are used, or tell generals and admirals to prosecute a war in a manner contrary to the orders of the commander-in-chief. But what if POTUS does not want to spend the money? Does it matter specifically how the legislation directs the spending?

Congress automatically and generically feeds a beast no longer fully controlled by Congress or the president, so whither that needed constitutional clarity?

Did Congress require USAID to issue LGBTQ coloring books in Peru? If not, does the money still have to be spent on something else? If an entire program or agency is rife with fraud and waste, can it be suspended or ended without congressional consent?

If POTUS were given $20 billion by Congress to build a particular weapons system and DOD brings it in for $16 billion (yes, wildly hypothetical, but humor me), does he still have to give the builders the other $4 billion?  Spend it elsewhere on defense, or can he give it back to the Treasury?  There are precedents for this situation in the Truman Administration.

Can Congress mandate waste?  Yes.  Legislation can specify methods and acquisitions that are pure pork or just stupid.  Can Congress mandate fraud? Not exactly, but exemptions could be created and incentives overwhelming.

SCOTUS will probably soon have to define the circumstances, reasons and procedures within which the President can substantially block abuses. And Trump’s people really need to avoid stepping on mines and instead build a defensible record of grounds and reasons for massive cuts.

In an ideal world, SCOTUS would give the president wide latitude but not total discretion (he can’t abolish an agency or entire program if Congress specifically established it without a heckofa good reason), especially if there is considerable discretion written into the appropriation.  This would also force Congress to be far more specific instead of punting to the bureaucracies and make all of government more responsive and transparent.  It could re-empower committees, bring about better oversight, and create accountability that currently does not exist (i.e., they know controversial groups and actions are being funded but don’t have to vote on the specifics).

I really hope the administration has a legal strategy in place for the protracted battles to come.  A lot of battlespace needs prepping, and, unfortunately, the forces of evil are really good at this kind of thing.  They figure (probably correctly) that significant litigation delays and just a few key electoral victories in 2026 might be enough to kill momentum and make the normals despair.

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  1. Susan Quinn Member
    Susan Quinn
    @SusanQuinn

    The whole idea of having to spend all the money appropriated and not returning it to Treasury is stupid. How about a change in that perception?!

    • #1
  2. She Member
    She
    @She

    Great post.  I also hope there’s a long-term strategy in place to address this problem once and for all. 

    I wonder if there’s any analysis being done of the “use it or lose it” aspect of federal budgeting.  (To be fair, lots of non-governmental industries and corporations do the same thing.)  Do most of the “Let’s teach Afghan peasant women to appreciate modern art by showing them pictures of urinals” type of expenditures come towards the end of the fiscal year?  After all, there are only so many African Ebola victims to save, and the rest of those leftover dollars won’t just spend themselves.

    Once you’ve completely drained the $70B you were assigned for this year, on whatever ridiculous projects you could dredge up, then you’re in line for the automatic percentage increase for next year, and on and on it goes.  Perhaps there should be 1) incentives provided for not spending all the money allocated in any given year and 2) no blanket guarantee of a budgetary increase, rather than the reverse.

    WRT the question posed in the OP’s title (Can Wasteful Spending be Mandatory?): Yes, it sure can.  I’m a retired surviving member of the healthcare IT “community.”  The amount of money that the healthcare industry has to spend on mandatory, duplicative, ridiculous, and wasteful “compliance” edicts from both the federal and state government must contribute substantially to the outrageous cost of US healthcare 

    I’ve said many times before here (maybe the first time had to do with Hillary’s bathroom email server) that if the private sector behaved as the government does, its corporations would be shut down and its executive officers would all be either fined or jailed for life.  Nothing has changed.  Perhaps it’s about to.  That would be good.

     

    • #2
  3. kedavis Coolidge
    kedavis
    @kedavis

    Seems likely that “appropriation” should be taken to mean “allow” not so much “require.”

    • #3
  4. Old Bathos Member
    Old Bathos
    @OldBathos

    Susan Quinn (View Comment):

    The whole idea of having to spend all the money appropriated and not returning it to Treasury is stupid. How about a change in that perception?!

    Is it a perception or the law?  CNN thinks it is the law.

    • #4
  5. Old Bathos Member
    Old Bathos
    @OldBathos

    kedavis (View Comment):

    Seems likely that “appropriation” should be taken to mean “allow” not so much “require.”

    Some say it is only a ceiling but others say that it is not that simple.

    • #5
  6. kedavis Coolidge
    kedavis
    @kedavis

    Old Bathos (View Comment):

    kedavis (View Comment):

    Seems likely that “appropriation” should be taken to mean “allow” not so much “require.”

    Some say it is only a ceiling but others say that it is not that simple.

    Maybe the problem comes from the idea that the president/administration is supposed to have a budget to be voted on, and Congress then appropriates money to fit the budget, not the other way around.  Appropriations for what they agree with, no appropriations – and hence no spending allowed – for what they don’t agree with.  If that gets turned around, you run into several problems, not just one.

    • #6
  7. MarciN Member
    MarciN
    @MarciN

    Old Bathos: If it were expressly tested and brought before SCOTUS, I think there is a good chance the 1974 Impoundment Control Act (the President may not refuse to spend money appropriated by Congress) would be found unconstitutional.  But there is still a lot of gray area.

    Great post. I’ve been wondering about all of this for weeks, and particularly that.

    My guess is that the Democrat lawyers are hard at work exploring this. 

     

     

    • #7
  8. Sisyphus Member
    Sisyphus
    @Sisyphus

    Old Bathos (View Comment):

    Susan Quinn (View Comment):

    The whole idea of having to spend all the money appropriated and not returning it to Treasury is stupid. How about a change in that perception?!

    Is it a perception or the law? CNN thinks it is the law.

    It has been a point of contention between many Congresses and many presidents, and has seen legislative patches. This round, the immediate patch is a budget recision bill to formalize in Congress the acceptable changes presented by DOGE. There is no legal obligation (unless otherwise specified in the appropriation) to spend prior to the end of the fiscal year, September 30th. That is my best recollection of Sen. Ted Cruz on this topic, I am not a budget lawyer and am already further out on this particular branch than comfortable.

    And CNN says whatever Democrat staffers feed them and repeat it as Eternal Writ. I trust them to be wrong more than right.

    • #8
  9. Ekosj Member
    Ekosj
    @Ekosj

    Susan Quinn (View Comment):

    The whole idea of having to spend all the money appropriated and not returning it to Treasury is stupid. How about a change in that perception?!

    The idea of having to spend all the money allocated presupposes that the problem being addressed by the spending will not be solved or appreciably improved this year.

    • #9
  10. Susan Quinn Member
    Susan Quinn
    @SusanQuinn

    Ekosj (View Comment):

    Susan Quinn (View Comment):

    The whole idea of having to spend all the money appropriated and not returning it to Treasury is stupid. How about a change in that perception?!

    The idea of having to spend all the money allocated presupposes that the problem being addressed by the spending will not be solved or appreciably improved this year.

    Now THAT is a really smart concept to convey–doh!

    • #10
  11. Sisyphus Member
    Sisyphus
    @Sisyphus

    Ekosj (View Comment):

    Susan Quinn (View Comment):

    The whole idea of having to spend all the money appropriated and not returning it to Treasury is stupid. How about a change in that perception?!

    The idea of having to spend all the money allocated presupposes that the problem being addressed by the spending will not be solved or appreciably improved this year.

    If you solve a problem, no money for you next year!

    • #11
  12. DonG (¡Afuera!) Coolidge
    DonG (¡Afuera!)
    @DonG

    Either Congress has millions of line items in their spending bills or the president has discretion how the money is spent.   If the money must be spent, then the president should spend it on things the left hates (free firearms training, debt relief for the USA,…)

    • #12
  13. Old Bathos Member
    Old Bathos
    @OldBathos

    Sisyphus (View Comment):

    Ekosj (View Comment):

    Susan Quinn (View Comment):

    The whole idea of having to spend all the money appropriated and not returning it to Treasury is stupid. How about a change in that perception?!

    The idea of having to spend all the money allocated presupposes that the problem being addressed by the spending will not be solved or appreciably improved this year.

    If you solve a problem, no money for you next year!

    The mechanics of agency budget growth was caricatured perfectly in The Weed Agency by Jim Geraghty. I recommend it for a very enjoyable read.

    • #13
  14. Sisyphus Member
    Sisyphus
    @Sisyphus

    Old Bathos (View Comment):

    Sisyphus (View Comment):

    Ekosj (View Comment):

    Susan Quinn (View Comment):

    The whole idea of having to spend all the money appropriated and not returning it to Treasury is stupid. How about a change in that perception?!

    The idea of having to spend all the money allocated presupposes that the problem being addressed by the spending will not be solved or appreciably improved this year.

    If you solve a problem, no money for you next year!

    The mechanics of agency budget growth was caricatured perfectly in The Weed Agency by Jim Geraghty. I recommend it for a very enjoyable read.

    I’ve lived decades of it. But if one hasn’t, there it is.

    • #14
  15. Henry Castaigne Member
    Henry Castaigne
    @HenryCastaigne

    Old Bathos: Did Congress require USAID to issue LGBTQ coloring books in Peru?

    You would be fact checked false by Snopes. Apparently, the embassy of Peru spent 32,000 thousand dollars promoting a comic that featured a gay character. However, the gay character was in a parade with trans looking people in the cover of the second issue with the rainbow flag. The rainbow flag also represents trans people so I get the mistake.

    I scrolled through it and the art and colors look pretty good for government work.

    More importantly, it was funded by the State Department rather than USAID as many other useless things are.

    Because the white house press secretary made these two mistakes, you can technically say that USAID wasted 32,000 dollars on trans propaganda is entirely false.

    I word argue that the deeper meaning of the story is that the government is wasting money frivolously for political and politically correct ends so I would categorize the story as being, ‘mostly true with some errors.’

    Snopes disagrees and other leftists fact checkers deem the story false.

    It’s fascinating how different folks interpret stuff.

     

    • #15
  16. CarolJoy, Not So Easy To Kill Coolidge
    CarolJoy, Not So Easy To Kill
    @CarolJoy

    As far as your lead question, I’d say the answer is that Congress figured out a long time ago that wasteful and pointless spending could be made mandatory. Why shouldn’t it be? How else could people making $175K to $225K a year go from a personal net worth of under 2 million dollars to one valued at over 100 million in just 2 decades?

    The defense industries understood the game and knew Congress would play along. .

    As did big pharma, about which anyone paying attention began to understand during the COVID debacle.

    Few Americans know that during the same speech which Pres Eisenhower delivered in order to warn America about the dangers within, he attempted to point out that there was a medical industrial complex that could be as dangerous as the military complex was.

    • #16
  17. CarolJoy, Not So Easy To Kill Coolidge
    CarolJoy, Not So Easy To Kill
    @CarolJoy

    Henry Castaigne (View Comment):

    Old Bathos: Did Congress require USAID to issue LGBTQ coloring books in Peru?

    You would be fact checked false by Snopes. Apparently, the embassy of Peru spent 32,000 thousand dollars promoting a comic that featured a gay character. However, the gay character was in a parade with trans looking people in the cover of the second issue with the rainbow flag. The rainbow flag also represents trans people so I get the mistake.

    (function() { var scribd = document.createElement(“script”); scribd.type = “text/javascript”; scribd.async = true; scribd.src = “https://www.scribd.com/javascripts/embed_code/inject.js”; var s = document.getElementsByTagName(“script”)[0]; s.parentNode.insertBefore(scribd, s); })()

    I scrolled through it and the art and colors look pretty good for government work.

    More importantly, it was funded by the State Department rather than USAID as many other useless things are.

    Because the white house press secretary made these two mistakes, you can technically say that USAID wasted 32,000 dollars on trans propaganda is entirely false.

    I word argue that the deeper meaning of the story is that the government is wasting money frivolously for political and politically correct ends so I would categorize the story as being, ‘mostly true with some errors.’

    Snopes disagrees and other leftists fact checkers deem the story false.

    It’s fascinating how different folks interpret stuff.

     

    Of course it is very important to understand who funds Snopes. Having a “fact checking” site that is funded by such a person as George Soros.

    Google has been part of the alliance. https://www.youtube.com/watch?v=c9Q9RBzO_VU&ysclid=m7paryuc3n721236515

    The above is from 6 years ago, and features Alex Jones. I find it hard to deal with his overly strident screeching, but it is a lot of necessary info in a mere 1 min 56 seconds. So if you can stiffen yr resolve, it is worth it!

    • #17
  18. CarolJoy, Not So Easy To Kill Coolidge
    CarolJoy, Not So Easy To Kill
    @CarolJoy

    Sisyphus (View Comment):

    Old Bathos (View Comment):

    Susan Quinn (View Comment):

    The whole idea of having to spend all the money appropriated and not returning it to Treasury is stupid. How about a change in that perception?!

    Is it a perception or the law? CNN thinks it is the law.

    It has been a point of contention between many Congresses and many presidents, and has seen legislative patches. This round, the immediate patch is a budget recision bill to formalize in Congress the acceptable changes presented by DOGE. There is no legal obligation (unless otherwise specified in the appropriation) to spend prior to the end of the fiscal year, September 30th. That is my best recollection of Sen. Ted Cruz on this topic, I am not a budget lawyer and am already further out on this particular branch than comfortable.

    And CNN says whatever Democrat staffers feed them and repeat it as Eternal Writ. I trust them to be wrong more than right.

    CNN has lost so many viewers that if it were not for the vast sums that US AID distributes to our traditional media, CNN might no longer exist.

    But to keep the forces behind the US AID money happy with their news propaganda, they must toe the liberal/Globalist line.

    Remember a lot of money comes from Soros to the media. That family’s foundation will still be driving various messages into the mouths of Talking Heads  long after George himself is dead.

     

    • #18
  19. The Scarecrow Thatcher
    The Scarecrow
    @TheScarecrow

    Sisyphus (View Comment):

    Ekosj (View Comment):

    Susan Quinn (View Comment):

    The whole idea of having to spend all the money appropriated and not returning it to Treasury is stupid. How about a change in that perception?!

    The idea of having to spend all the money allocated presupposes that the problem being addressed by the spending will not be solved or appreciably improved this year.

    If you solve a problem, no money for you next year!

    This pertains now. It’s woven into what got us here, $31,000,000,000,000 in debt. 

    I don’t know if Elon is exactly a Savior or anything, but he is a clear-eyed engineer, and he sees things like this and says “aha, I think I have discovered a problem. Let’s stop this.”

    One of the greatest lines in any movie ever was from Anton Chigurth, in the immortal NCFOM: “If the philosophy you followed led you to this, of what use is your philosophy?”

    We do so many things right, get things right; it has made us a great, hugely successful  country. But we allow and give into so many stupid things—most in a pretense to an imaginary virtue—that are illogical, and cheap and easy, that will destroy us. And should.

    This new  movement, MAGA or whatever it will be known as,  isn’t perfect, but nothing is. Luckily we don’t need perfect, we just need honest, effective, stalwart, humble, and unwavering. A repudiation of the casual cynicism that every big organization HAS to drift into corruption. It may, but honorable men can live by a philosophy that says we always stand guard against casual and easy corruption.

    Sorry, just watched LoTR again. 

    • #19
  20. Sisyphus Member
    Sisyphus
    @Sisyphus

    The Scarecrow (View Comment):

    This new  movement, MAGA or whatever it will be known as,  isn’t perfect, but nothing is. Luckily we don’t need perfect, we just need honest, effective, stalwart, humble, and unwavering. A repudiation of the casual cynicism that every big organization HAS to drift into corruption. It may, but honorable men can live by a philosophy that says we always stand guard against casual and easy corruption.

    Sorry, just watched LoTR again. 

    How dare you be sincere and unironic when the fate of the republic is at stake!

    “Forget  it, Jake, it’s Chinatown.”

    It’s unfair to suddenly show up and apply the rules. I went to a Jack Nicholson movie and I was suddenly in the Untouchables. Forensic accounting is the order of the day. Stay strong, I think Jimmy Stewart is the second bill. Mr Smith Goes to Washington.

    • #20
  21. RufusRJones Member
    RufusRJones
    @RufusRJones

    What does trade and automation produce? Deflation. 

    Artificial intelligence creates massive deflation.

    What does the central bank do anyway? You know what it does. They lie about the figure. Felix Zulaf says it’s double what they state it is. 

    We do it because it’s the only way to be materialistic, otherwise known as keeping the trade routes open. Regressive taxation. The other thing is, we are too stupid and corrupt to keep a fractional reserve banking system together without lying about inflation. 

    The whole system is predicated on the constant infusion of debt principle into the system, spent as income. The Fed is always screwing around with the “wealth effect” which is simply getting rich people to spend money instead of focusing on wages and profit.

    The system is stupid and it’s going to end the hard way. 

    • #21
  22. RufusRJones Member
    RufusRJones
    @RufusRJones

     

    In the ‘60s you had this nascent semiconductor boom that sucked capital away. You had conglomerate mania, the nifty 50, set it and forget it. Very similar in a lot of ways to passive investing today, right? You don’t have to make any decisions, you just kind of go into the highest valuation parts of the market and you let size do the rest. And in the ‘90s of course you had the .com bubble, so you had the similar setup in all cases. In all cases you’ve had investment dollars come out of the commodity space, which of course leads to a supply response. Eventually that market ratchets tighter and tighter and tighter and tighter, until the weight of depletion overcomes and you get this slip from surplus back into deficit and you set up in the next bull cycle. And I think we’re the process of that happening today. I think it’s happening for the fundamentals, but most excitedly of all, I think it’s happening because of this big shift that I see taking place in global monetary systems in the next 12 months.

    Grant Williams (00:06:41):

    That’s such a crucial point. And I think people tend to think of commodities in and of themselves kind of extracted from the monetary system, because most people, apart from gold and silver, they’re not monetary assets. But again, when these systems tend to shift and morph, and be forced to change, because these changes never happened voluntarily, it is that return to the real that’s so important and that tangibility of commodities. So this time around, what do you think is going to be the driving force for that? Because if you’re paying close enough attention, we are seeing signs that this monetary system is at least reaching somewhere close to the end of its useful life, given the amount of debt that’s been layered on top of it. Is that likely to be the catalyst or do you see something else potentially stepping in?

    Adam Rozencwajg (00:07:23):

    No, I think ultimately that will be the catalyst. And obviously, we’re devotees of people like Jim Grant and others who’ve talked for a long time how the current system is unsustainable. And I couldn’t agree more. The big question of course is what’s going to trigger that realization, because you could have said that a couple of years ago and you would’ve been right, but here we are and things are only getting bigger. The debts and deficits are getting bigger and more unwieldy. And I think a reasonable and rational investor could have looked at the state of affairs five, six or even seven years ago and said, “Well, this doesn’t seem sustainable,” and yet here we are. But I think today is different, because I do think that we’re on the verge of a major shift. But before I get into exactly where I think that’s taking place, I want to talk about a book that made a big impression on us here at Goehring and Rozencwajg this year, and it’s called The Rise of Carry by Tim Lee, Jamie Lee and Kevin Coldiron.

    And what they talk about is effectively how the whole world has become one giant carry trade. And to me, reading through this, I suspect people will either gravitate to it or just shy away from it if you’re predisposed to thinking in these terms. But basically, what they talk about is how classic carry trade is one, let’s say where you borrow in yen and you invest in Australia, that would be the classic quintessential textbook carry trade. You have a cost of capital, arbitrage and differential. You have to use a lot of leverage to magnify and amplify that differential. And the trade basically works, as long as the world stays the same. What do I mean by that? Well, as long as the exchange rates hold in sync, you can borrow cheap in Japan, invest in Australia, and in fact there is an arbitrage there that persists over in some cases many years, in some cases a decade.

    https://www.grant-williams.com/podcast/the-grant-williams-podcast-adam-rozencwajg/

    • #22
  23. RufusRJones Member
    RufusRJones
    @RufusRJones

    DOGE found that they spent thousands of dollars to educate the people in ***Nepal*** about federalist decentralized, spending or something. I thought this is really stupid because that is such a small country. Well, it actually has 31 million people in it. lol Having said that, you know it isn’t going to do a damn thing.

    • #23
  24. Full Size Tabby Member
    Full Size Tabby
    @FullSizeTabby

    We had some of this same problem in the 1970s and 80s as federal judges took over telling school districts how to run schools (under the guise of fixing racial discrimination), and ordered school districts to spend money in ways counter to what the electorate wanted. 

    • #24
  25. Henry Castaigne Member
    Henry Castaigne
    @HenryCastaigne

    RufusRJones (View Comment):
    Felix Zulaf

    That is such a cool weird name.

    • #25
  26. kedavis Coolidge
    kedavis
    @kedavis

    RufusRJones (View Comment):

    What does trade and automation produce? Deflation.

    Artificial intelligence creates massive deflation.

    What does the central bank do anyway? You know what it does. They lie about the figure. Felix Zulaf says it’s double what they state it is.

    We do it because it’s the only way to be materialistic, otherwise known as keeping the trade routes open. Regressive taxation. The other thing is, we are too stupid and corrupt to keep a fractional reserve banking system together without lying about inflation.

    The whole system is predicated on the constant infusion of debt principle into the system, spent as income. The Fed is always screwing around with the “wealth effect” which is simply getting rich people to spend money instead of focusing on wages and profit.

    The system is stupid and it’s going to end the hard way.

    “We must have inflation, but we shouldn’t.”

    • #26
  27. RufusRJones Member
    RufusRJones
    @RufusRJones

    Old Bathos:

    Congress automatically and generically feeds a beast no longer fully controlled by Congress or the president, so whither that needed constitutional clarity?

    Did Congress require USAID to issue LGBTQ coloring books in Peru? If not, does the money still have to be spent on something else? If an entire program or agency is rife with fraud and waste, can it be suspended or ended without congressional consent?

    If POTUS were given $20 billion by Congress to build a particular weapons system and DOD brings it in for $16 billion (yes, wildly hypothetical, but humor me), does he still have to give the builders the other $4 billion?  Spend it elsewhere on defense, or can he give it back to the Treasury?  There are precedents for this situation in the Truman Administration.

    Can Congress mandate waste?  Yes.  Legislation can specify methods and acquisitions that are pure pork or just stupid.  Can Congress mandate fraud? Not exactly, but exemptions could be created and incentives overwhelming.

     

    That’s why I always say that government should just consist of public goods. Supposedly 80% of government is non-public goods.

    • #27
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