Nixon's impoundment crisis (1972-1974)
President Richard Nixon refused to spend billions in congressionally appropriated funds for programs he opposed, claiming the right to control spending. Congress responded with the Congressional Budget and Impoundment Control Act of 1974, which required presidents to spend appropriated funds unless Congress approved a rescission.
The law created a formal process for cancellations and effectively ended unilateral impoundment.
The NEVI lawsuit tested the same principle — whether an executive can freeze funds Congress already approved.
The states' lawsuit against Trump echoes this 50-year-old constitutional fight over who controls appropriated money.
