The Antideficiency Act (ADA), Pub.L. 97–258, 96 Stat. 923, is legislation enacted by the United
States Congress to prevent the incurring of obligations
or the making of expenditures (outlays) in excess of amounts available in appropriations or funds.
The law was initially enacted in 1884, with
major amendments occurring in 1950 (64 Stat. 765) and 1982 (96 Stat. 923). It is now codified at 31 U.S.C. § 1341. The ADA
prohibits the federal government of the United States 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 is sometimes known as Section 3679 of the Revised Statutes, as
amended.
The Antideficiency Act has
evolved over time in response to various abuses. The earliest version of the
legislation was enacted in 1870 (16 Stat. 251), after the Civil War, to end the executive
branch's long history of creating coercive deficiencies.
Many agencies,
particularly the military, would intentionally run out of money, obligating
Congress to provide additional funds to avoid breaching contracts. Some went as
far as to spend their entire budget in the first few months of the fiscal year,
funding the rest of the year after the fact with additional appropriations from
Congress.
The act provided:... that it shall not be lawful for any
department of the government to expend in any one fiscal year any sum in excess
of appropriations made by Congress for that fiscal year, or to involve the
government in any contract for the future payment of money in excess of such
appropriations.
Amendments in 1905 and
1906 mandated all appropriations to be apportioned in monthly installments and
criminal penalties were imposed for violations.
The "Antideficiency
Act" actually includes provisions of Title 31 that are not always
associated with the principal provision of the Act which is found at 31 USC
1341. Thus, the ADA also includes 31 USC 1342, a provision which prohibits voluntary
services. It also includes 31 USC 1501-1519, provisions which require that
appropriated funds be subdivided, "apportioned" and
"allocated" before any of the appropriated funds can be expended by
the Executive Branch.
The earliest version of
the legislation was enacted in 1870 (16 Stat. 251). The Antideficiency Act
(Pub.L. 97–258, 96 Stat. 923) was initially enacted in
1884.
The Act was amended and
expanded several times, most significantly in 1905 and 1906. It was further
modified by an executive order in 1933 and significantly revamped in 1950
(64 Stat. 765). The current
version was enacted on September 12, 1982 (96 Stat. 923). It is now codified
at 31 U.S.C. § 1341.
To some extent, but not entirely, it implements
the provisions of Article One of the United States
Constitution, 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."
The Government
Accountability Office, inspectors general, and individual agencies
investigate potential violations of the Antideficiency Act every year. The act
has ramifications for agencies and individual employees alike.
Although the ADA and its
predecessors are over 120 years old, no one has ever been convicted or indicted
for its violation. However, agreements have been changed and reported due to
ADA violations and punitive administrative actions are routinely taken
against government employees.
The ADA is cited as the
reason for a government
shutdown when
Congress misses a deadline for passing an interim or full-year appropriations
bill.
Comments
Government spending
should be based on revenue. Congressional “oversight” hearings should proceed
when agencies face higher expenses that will exceed their traditional expenses.
The hearings should focus on reducing other agency expenses and should be based
on “Lean Management” elimination of unnecessary processes and automation to
lower costs.
Norb Leahy, Dunwoody
GA Tea Party Leader
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