Sen. Merkley warns of impoundment risks after program cancellations; Mr. Duncan says OMB is complying with law

Sen. Merkley pressed Mr. Duncan on whether the Office of Management and Budget would signal concerns if OMB proposed canceling programs that are authorized and funded, citing the Impoundment Control Act and Supreme Court reinforcement of separation-of-powers principles. Merkley named USAID as an example of programs he said have been canceled despite authorization and funding.

Mr. Duncan replied that he is “fully committed to upholding the Constitution” and said he believed the administration has been in compliance with the Impoundment Control Act to date. He acknowledged the issue has been litigated and said he looks forward to continuing to work with the senator on OMB-related matters.

What was not resolved: Merkley sought an explicit assurance that OMB would raise a formal “yellow flag” when a proposed cancellation might violate separation-of-powers principles; Mr. Duncan answered in general terms about compliance and commitment to the law but did not provide a detailed procedure for flagging such proposals during the hearing.

Why it matters: The Impoundment Control Act limits executive ability to withhold funds appropriated by Congress. Senators said recent cancellations of authorized programs raise separation-of-powers concerns that would merit heightened internal review and clear notification to Congress.

Ending: The committee did not receive a detailed, documented procedure for how OMB would escalate potential impoundment issues to Congressional oversight; Mr. Duncan said he would work with senators on these topics going forward.