Trump team eyes changes to 1974 law to enable Musk’s budget overhaul plans

November 14, 2024

Alex Delia

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President-elect Donald Trump’s announcement of a commission led by Elon Musk and Vivek Ramaswamy to overhaul federal spending is raising constitutional concerns about executive authority. The commission, unofficially dubbed the “Department of Government Efficiency,” aims to cut up to $2 trillion from the federal budget, but legal experts warn that bypassing Congress could lead to a constitutional clash.

Trump, Musk and Ramaswamy envision the commission as a watchdog on government spending. Musk has pledged to make recommendations and publicize federal expenses considered wasteful.

They aim to reduce funding for outdated programs, streamline agencies and apply business principles to federal budgets. However, the plan’s legality is in question due to the 1974 Impoundment Control Act, which prevents the executive branch from withholding funds allocated by Congress.

The Trump administration has floated the idea of challenging or amending the Impoundment Control Act, potentially giving the White House more budgetary control. Trump’s allies, buoyed by the conservative-leaning Supreme Court, are optimistic that the court might support these reforms.

Supporters argue that increasing executive power over spending is essential to addressing the national debt, which has reached $36 trillion. Russell Vought, Trump’s former budget director and vocal advocate for such reforms, claims the 1974 law limits the president’s authority to reduce waste and has labeled it unconstitutional.

Meanwhile, critics argue that circumventing Congress could endanger the balance of power. Legal scholars caution that allowing any White House to unilaterally cancel spending could set a dangerous precedent. Others, like former House Speaker Newt Gingrich, advocate working with Congress rather than sidestepping it.

As Trump prepares to take office, a potential showdown over the scope of executive power could be one of the first major legal battles of his administration.

Tags: Donald Trump, Elon Musk, Government funding, Government funding bill, National Debt, SpaceX, U.S. Congressional Budget Office, U.S. Economy, Vivek Ramaswamy

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Full story

Trump, Musk and Ramaswamy envision the commission as a watchdog on government spending. Musk has pledged to make recommendations and publicize federal expenses considered wasteful.

As Trump prepares to take office, a potential showdown over the scope of executive power could be one of the first major legal battles of his administration.