Anti-Deficiency Act
Encyclopedia
The Anti-Deficiency Act , is legislation
Legislation
Legislation is law which has been promulgated by a legislature or other governing body, or the process of making it...

 enacted by the United States Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....

 to prevent the incurring of obligations or the making of expenditures (outlays) in excess of amounts available in appropriation
Appropriation (law)
In law and government, appropriation is the act of setting apart something for its application to a particular usage, to the exclusion of all other uses....

s or funds. It is now codified at . The ADA prohibits the Federal government from entering into a contract that is not "fully funded" because doing so would obligate the government in the absence of an appropriation adequate to the needs of the contract. This Act of Congress
Act of Congress
An Act of Congress is a statute enacted by government with a legislature named "Congress," such as the United States Congress or the Congress of the Philippines....

 is sometimes known as Section 3679 of the Revised Statutes, as amended.

History

This Act has evolved over time in response to various abuses. It was originally enacted in 1884; a new version was enacted in 1950.

Constitutional authority

To some extent, but not entirely, it implements the provisions of Article One of the United States Constitution
Article One of the United States Constitution
Article One of the United States Constitution describes the powers of Congress, the legislative branch of the federal government. The Article establishes the powers of and limitations on the Congress, consisting of a House of Representatives composed of Representatives, with each state gaining or...

, Section 9, Clause 7 (the "power of the purse"), which provides that "No money shall be drawn from the treasury, but in consequence of appropriations made by law." In part, the Act is actually inconsistent with the Constitution because it recites that expenditures without appropriations can be made where expressly permitted by Congress: the Constitution permits no such exception.

Although the ADA and its predecessors are over 120 years old, no one has ever been convicted or even indicted for its violation.
However, agreements have been changed and reported due to ADA violations

An important corollary of the constitutional provision is that departments and agencies of the government may not "augment" appropriations either by raising money instead of seeking and getting an appropriation or by retaining funds collected and using them instead of receiving an appropriation. This bar to augmentation of appropriations is regularly violated by the executive branch and often with the consent of Congress. Practices in the nature of revolving funds (funds that are kept liquid by the use of "income" realized by agencies) clearly violate the augmentation limitation.

External links

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