Effectively Using The Power Of The Purse

Theoretically, the House of Representatives can limit executive power by using its control of the purse strings. According to the U.S. Constitution, the government cannot spend money unless that spending is authorized by the House of Representatives. We haven’t seen the House of Representatives use that power as much as I would have liked under the Obama Administration, but the power is there. In fact, there was one recent incident where the House of Representatives successfully used that power.

In October I posted a story about the Obama Administration attempting to spend money that was not allocated by Congress. At issue were payments to insurance companies to alleviate their losses under Obama.

As reported by the Daily Signal in October:

In January, Sessions’ committee and the House Energy and Commerce Committee had identified that the Department of Health and Human Services (HHS) lacked an appropriation for bailing out insurance companies through the risk corridors. They asked the Government Accountability Office to look into the matter. That September, the GAO issued its legal opinion: the administration would need an appropriation from Congress to make outgoing payments.

Today The Los Angeles Times reported:

A federal judge ruled for House Republicans on Thursday in their suit against President Obama and declared his administration is unconstitutionally spending money to reimburse health insurers without obtaining an appropriation from Congress.

The judge’s ruling, though a setback for the administration, was put on hold immediately and stands a good chance of being overturned on appeal.

The ruling upholds the Constitution, why would it be overturned on appeal?

The article at The Los Angeles Times reports:

The Constitution says “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law,” said Judge Rosemary Collyer, yet the administration has continued to pay billions to insurers for their extra cost of providing coverage for low-income Americans.

“Paying out Sec. 1402 reimbursements without an appropriation thus violates the Constitution,” she wrote. “Congress is the only source for such an appropriation, and no public money can be spent without one.”

Stay tuned to see if the Constitution will be upheld.