Trump Releases Budget Proposal

Yesterday, Donald Trump unveiled his new budget proposal for 2026 which included significant cuts to many programs in the United States – including an 84% cut to State and International Programs, 56% to the National Science Foundation, and 54% to the Environmental Protection Agency while also increasing the budget for Defense by 13% and Homeland Security by 65%.

I would now like to give a quick reminder that the power of appropriations lies with Congress, not the President, and it is Congress that decides the programs the federal government is allowed to spend on:

No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time. Article I; Section 9 – U.S. Constitution

During the campaign trail, President Trump mentioned the idea that even if Congress approved funding, he would still be able to simply not spend it – known as impoundment.  In response to President Nixon holding congressionally approved funds in the early 1970s, Congress codified impoundment and does allow the President to request rescission of funds but if Congress does not grant the request, the President cannot legally impound approved spending.

With the release of his new budget, an official with OMB said they will not rule out impoundment if Congress does not approve the budget Donald Trump wants – meaning he is suggesting illegally overruling the will of Congress if they don’t do what he asks.

Senators Grassley and Ernst, Representative Nunn, please stand up and demand the President follow the law, and demand that he stop trying to intimidate Congress to bend to his will.

I would also like to strongly recommend this episode of River to River – specifically the discussion with ISU Economist Peter Orazem on the impact of trade policies on the Iowa Economy.  In the interest of full disclosure, Dr. Orazem was my major professor at Iowa State.

How national economic uncertainty is affecting Iowa consumers | Iowa Public Radio

 

Sources:

President’s Budget – OMB – The White House

Trump wants big budget cuts, but not for defense or the border : NPR

https://www.nytimes.com/live/2025/05/02/us/trump-budget-2026?unlocked_article_code=1.EU8.AcMW.c8goxewSOzVl&smid=url-share

U.S. Constitution | Constitution Annotated | Congress.gov | Library of Congress

What you need to know about impoundment, and how Trump vows to use it | PBS News

Congressional Budget and Impoundment Control Act of 1974 – Wikipedia

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