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

2 hrs ago

Karah Rucker Reporter

By Karah Rucker (Reporter), Alex Delia (Producer), Jake Larsen (Video Editor)

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.

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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.

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They aim to reduce funding for outdated programs, streamline agencies and apply business principles to federal budgets.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

[Karah Rucker]

PRESIDENT ELECT DONALD TRUMP INTRODUCED TECH BILLIONAIRE ELON MUSK AND FORMER G-O-P CANDIDATE VIVEK RAMASWAMY AS LEADERS OF A NEW COMMISSION DEDICATED TO OVERHAULING FEDERAL SPENDING. CRITICS ARE CONCERNED THESE PLANS COULD SIDESTEP CONGRESS AND DISRUPT LONGSTANDING BUDGET RULES. NOW THE WASHINGTON POST REPORTS TRUMP’S TEAM IS LOOKING TO CHALLENGE A 50-YEAR OLD LAW… POTENTIALLY GIVING THE PRESIDENT MORE OVERSIGHT ON WHERE GOVERNMENT DOLLARS ARE GOING.

THE NEWLY NAMED “DEPARTMENT OF GOVERNMENT EFFICIENCY”… OR DOGE, AS ELON MUSK HAS NICKNAMED IT… AIMS TO SCRUTINIZE FEDERAL SPENDING WITH A SHARP EYE FOR CUTS. MUSK, RAMASWAMY, AND THE TRUMP TEAM HAVE A TARGET IN MIND… CUTTING OR DE-FUNDING UP TO 2-TRILLION FROM THE FEDERAL BUDGET BY ELIMINATING PROGRAMS THEY VIEW AS WASTEFUL.

Elon Musk:
“We’ll just take a look at all the federal agencies, and say… do we really need 428 federal agencies?…. ”
“I think we should be able to get away with 99 agencies”

THE COMMISSION, OFFICIALLY SET UP OUTSIDE THE ADMINISTRATION AND NOT AN ACTUAL GOVERNMENT AGENCY ITSELF, WILL STILL COORDINATE WITH THE WHITE HOUSE BUDGET OFFICE.

THESE CUTS COULD AFFECT THOUSANDS OF PROGRAMS AND MILLIONS OF FEDERAL WORKERS. AND IF THEY GET THE GREEN LIGHT, DOGE COULD CHANGE THE FACE OF GOVERNMENT SPENDING DRAMATICALLY.

BUT FIRST, THE TRUMP ADMINISTRATION WILL HAVE TO FIND A WAY TO CHANGE THE IMPOUNDMENT CONTROL ACT.

ANY CHANGES TO FEDERAL SPENDING REQUIRE CONGRESSIONAL APPROVAL UNDER THE 1974 LAW. THIS ACT, SIGNED IN THE WAKE OF WATERGATE, RESTRICTS THE PRESIDENT FROM WITHHOLDING FUNDS THAT CONGRESS HAS ALLOCATED.

TRUMP’S TEAM WANTS TO CHALLENGE THAT LAW, EITHER BY APPEALING TO THE COURTS OR ASKING CONGRESS TO AMEND IT. THIS WOULD LET THE WHITE HOUSE POTENTIALLY IMPLEMENT DOGE’S CUTS WITHOUT WAITING FOR CONGRESSIONAL APPROVAL…

AND IT’S NOT JUST CHANGING THE IMPOUNDMENT ACT THAT THE TEAM HAS ITS EYE ON. MUSK AND RAMASWAMY HAVE HINTED AT OTHER WORKAROUNDS… LIKE ENDING EXPIRED PROGRAMS THAT CONGRESS HAS NEGLECTED TO FORMALLY CLOSE. RAMASWAMY REPLIED TO A FOX NEWS POST ON X WHICH REPORTED MILLIONS SPENT ON PROGRAMS LIKE THE ALPHA GENESIS RESEARCH FACILITY, OR ‘MONKEY ISLAND’ IN SOUTH CAROLINA… SAYING ANYTHING THAT DOESN’T ADVANCE THE INTEREST OF AMERICAN CITIZENS IS ON THE CHOPPING BLOCK.

SUPPORTERS OF THIS REFORM POINT TO THE RISING FEDERAL DEBT, NOW APPROACHING 36-TRILLION DOLLARS, AS A REASON FOR DRAMATIC ACTION. THEY ARGUE THAT PRESIDENTS IN THE PAST REGULARLY WITHHELD SPENDING, AND TODAY’S DEBT CRISIS DEMANDS BOLD SOLUTIONS.

Vivek Ramaswamy
“We will face the temptation to say we want to staff the bureaucracies with our own people and claim we want to reform them… No. The right answer is to get down there and shut down the bureaucracy. That’s how we save this country”

BUT NOT EVERYONE IS ON BOARD WITH RUSHING INTO A DECISION LIKE THIS… AND ARE URGING PEOPLE TO CONSIDER THE CONSEQUENCES WHEN IT COMES TO CUTTING FEDERAL BENEFITS… INCLUDING TENNESSEE CONGRESSMAN STEVE COHEN.

REP. STEVE COHEN, D-TN

“A lot of people who voted for Trump are gonna be seeing those cuts… as efficiency in the eyes of 2 billionaires. I mean… I’m not sure 2 billionaires can relate to the average American who’s making 75 or 100-thousand a year.”

THE DEBATE OVER DOGE AND BUDGET CONTROL IS JUST BEGINNING.

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FOR STRAIGHT ARROW NEWS… I’M KARAH RUCKER.