Restoring the Power of the Purse: Legislative Options

PURPOSE:

• To examine use of fines, fees, penalties, and settlements to fund agency priorities outside of the appropriations process.
• To discuss H.R. 5499, the Agency Accountability Act of 2016 as a potential solution.

BACKGROUND:

• The Constitution vests the power of the purse in Congress, and over time it has been subverted by spending that occurs outside of the appropriations process.
• Agencies routinely use funds collected through fines, fees, penalties, and settlements, to fund agency operations and unappropriated programs.
• The Government Accountability Office calls this “backdoor spending.”