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Wednesday, September 20, 2023 8:32:24 PM
Q: Can a Federal Agency set its own annual budget and receive the money from sources other than the US Treasury and avoid violating the Appropriations Clause of the US Constitution?
A: No, a federal agency cannot set its own annual budget and receive money from sources other than the U.S. Treasury without violating the Appropriations Clause of the U.S. Constitution. The Appropriations Clause, found in Article I, Section 9, Clause 7, of the Constitution, grants the power to appropriate funds exclusively to Congress. It states that "No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law."
This clause means that only Congress has the authority to authorize the expenditure of federal funds for government activities. Federal agencies are not constitutionally permitted to set their own budgets or independently acquire funds outside of the appropriations process established by Congress. All federal spending, regardless of the source, must be in accordance with appropriations passed by Congress.
While federal agencies may generate revenue through various means, such as fees, fines, or other income, these funds are typically considered "offsetting collections" and are subject to congressional oversight and approval. They cannot be used to bypass the appropriations process or establish independent budgets for agencies. The core principle is that Congress holds the power of the purse and must approve all federal spending, as mandated by the Constitution."
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