Trump's Impoundment Claim Could Hinge on IRS Funding

Public Policy & Regulation attorney Robert Bradner spoke with Tax Notes about how former President Donald Trump would approach funds appropriated to the IRS if re-elected. During Trump's first term, the issue of impounding funds arose during his impeachment trial, which involved allegations that he pressured Ukrainian President Volodymyr Zelenskyy to investigate the Biden family in exchange for unlocking military aid approved by the U.S. Congress. The Government Accountability Office (GAO) determined that this violated the Congressional Budget and Impoundment Act of 1974, which prohibits presidents from withholding funds appropriated by Congress. The issue has come up again in relation to funding for the IRS as part of the Inflation Reduction Act, to which Trump has signaled his opposition. Mr. Bradner commented he foresees a challenge from the Trump Administration to the funding, which would likely trigger a GAO investigation finding that the president violated the impoundment act. He added that the GAO's role is tricky, especially after a U.S. Supreme Court decision that limited its involvement in reviewing the impoundment of appropriated funds.

"The issue is the GAO, which has the authority to review the use of appropriated funds and sue the executive branch, is part of the legislative branch," he said. "They can't be involved in the execution of the law."

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