In direct response to President Nixon’s impoundments of congressionally appropriated funds, Congress passed the Congressional Budget and Impoundment Control Act of 1974 (Pub. L. No. 93-344, Title X). The law established two narrow pathways — rescission and deferral — through which the President could legally delay or propose canceling appropriated funds, while prohibiting unilateral indefinite withholding without following either statutory pathway.
Congress Passes Impoundment Control Act