The Return of the American Caesar
27th February 2025
Few of President Trump’s actions early in his second term have provoked as much furor as the executive order freezing certain federal spending programmes. A federal trial judge in Rhode Island issued a nationwide injunction against the freeze, insisting that he intends to stop the administration from “any federal funding pause”. Five former Treasury secretaries published a protest op-ed in The New York Times, warning that “not since the Nixon administration has this type of executive action been contemplated”.
They’re right about that. Trump’s assertion of the president’s power to pause funding — the right of impoundment — reverses the standard practice of the past two generations. Team Trump aims to restore the traditional exercise of presidential authority to impound congressional spending, a power which was restricted by the Impoundment Control Act of 1974. In doing so, the Trumpians aim to put an end to what political analyst Kevin Phillips called the “Watergate warp” that weakened American presidents, Republican and Democratic, pulling them down from the Caesarist heights summited by pre-Watergate chief executives.
The principle behind impoundments is simple. Congress has the authority to set the ceiling on spending, the thinking runs, but not the floor. If the goal of a programme is achieved without spending the full amount authorised by the legislative branch, the president can decide not to spend the difference. So argued FDR, a frequent user of impoundments. Forcing the president to spend every last dime, he said, “would take from the chief executive every incentive for good management and the practice of commonsense economy”.
If the legal battles over Trump’s executive order freezing some spending lead to a Supreme Court decision clarifying the constitutionality of impoundments — and holding the 1974 act unconstitutional — it would be a huge win for the administration, and they are gearing up for it. But legal battles are downstream of political ones. In Trump’s first term, the president was frequently stymied by coordinated media, legal, and security-apparatus efforts to generate public outcry. After some bluster, Trump usually withdrew to a more conventional position. But he is pulling no punches this time around, and noticeably, he doesn’t need to. The American people appear much less susceptible to supposed threats to “our democracy” than they were in 2017, and Trump’s approval ratings have climbed since he re-entered the Oval Office.