An Examination Of Presidential Power Over Investigation Of Corrupt Government Spending

Presidential Power, Copyright, RCR

The United States has three branches of government—executive, legislative, and judicial—because the framers of the Constitution sought to prevent tyranny by ensuring that no single entity held unchecked power. This system is rooted in the principle of separation of powers, first articulated by Montesquieu in The Spirit of the Laws (1748), and reinforced by a system of checks and balances to maintain equilibrium among the branches.

The Legislative Branch (Congress)

Primary Power: Makes laws.

• Checks on the Other Branches:
• Can override a presidential veto with a two-thirds vote.
• Controls funding for executive agencies and military operations.
• Can impeach and remove the president or federal judges.
• Must confirm presidential appointments and ratify treaties (Senate).
• Can propose constitutional amendments to override judicial decisions.

The Executive Branch (President and Administration)

Primary Power: Enforces laws.

• Checks on the Other Branches:
• Can veto legislation passed by Congress.
• Appoints federal judges and Supreme Court justices.
• Can issue executive orders (though these are subject to judicial review).
• Acts as Commander-in-Chief, controlling military operations.
• Can pardon individuals convicted of federal crimes, checking judicial power.

The Judicial Branch (Federal Courts and Supreme Court)

Primary Power: Interprets laws.

• Checks on the Other Branches:
• Can declare laws passed by Congress unconstitutional (judicial review).
• Can rule executive actions unconstitutional.
• Justices serve for life (pending good behavior), insulating them from political pressures.

Checks and Balances in Action

• If Congress passes a controversial law, the president can veto it.
• If the president abuses power, Congress can impeach and remove them.
• If a law or executive action is unconstitutional, the judiciary can strike it down.
• If courts make rulings deemed inappropriate, Congress can amend the Constitution or pass new laws.

This structure ensures that power is diffused, preventing any one branch from dominating government functions. It embodies the founders’ intent for a stable, self-regulating system based on liberty and accountability.

What Is A “Constitutional Crisis?”

Presidential Power to Investigate Government Spending and End Corruption

The president, as the chief executive, has broad authority to oversee how federal money is spent and to take action against waste, fraud, and corruption. However, the extent of this power is subject to legal and constitutional limits, particularly in relation to Congress’s authority over federal appropriations.

Executive Authority Over Government Spending

The president has several tools to investigate and address wasteful spending:

Executive Orders & Directives: The president can issue executive orders directing agencies to audit their spending and eliminate waste.

Office of Management and Budget (OMB): The OMB, which operates under the Executive Office of the President, oversees the implementation of the federal budget and can direct agencies to review and reduce inefficient spending.

Inspectors General (IGs): Each federal agency has an inspector general tasked with investigating fraud and mismanagement. The president can request IGs to conduct audits and report findings.

Department of Justice (DOJ): If corruption is found, the president can direct the DOJ to investigate and prosecute those responsible. The DOJ has the authority to enforce anti-corruption laws, such as the False Claims Act.

Government Accountability Office (GAO) Reports: The GAO is an independent agency under Congress, but the president can request its reports on government waste and use them to push for reforms.

Presidential Limits: Can Congress Infringe?

The legislative branch has the power of the purse, meaning it controls appropriations and federal spending under Article I, Section 9, Clause 7 of the Constitution:

“No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.”

This means that: The president cannot unilaterally withhold or reallocate funds appropriated by Congress unless authorized by law (e.g., impoundment power is restricted by the Impoundment Control Act of 1974).

Congress can conduct its own investigations through committees and subpoena executive officials to testify about spending.

While the president can push for spending cuts and anti-corruption reforms, Congress must ultimately enact laws to eliminate programs or reallocate funds.

Can Congress Block a Presidential Investigation?

Congress cannot directly prevent the president from ordering an investigation within the executive branch, but it can:

Restrict funding for investigations (e.g., defund an oversight office).

1. Pass laws limiting executive control over agencies like the DOJ or IGs.
2. Override executive actions by enacting statutes that make certain spending mandatory.
3. Subpoena executive branch officials in oversight hearings, sometimes leading to legal battles over executive privilege.

However, if Congress actively obstructs a corruption investigation (e.g., by shielding corrupt officials or agencies from scrutiny), the president can use public pressure, veto powers, or legal challenges to push back.

A Complex Balance of Power

The president has significant authority to investigate and expose wasteful spending but cannot unilaterally cancel appropriations without congressional approval. The separation of powers ensures that neither branch has absolute control over government spending, creating a system where transparency and accountability require cooperation—or, in cases of conflict, legal and political maneuvering.

A federal judge does not have the constitutional authority to outright prevent the president from investigating federal budget spending or corruption within the executive branch. However, courts may become involved in cases where the president’s actions conflict with existing laws, congressional authority, or constitutional rights.

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The President’s Right to Investigate Federal Spending

The president, as the head of the executive branch, has clear authority to:

Investigate fraud, waste, and abuse within federal agencies.

• Order audits and financial reviews of government spending.
• Direct inspectors general (IGs) and the Office of Management and Budget (OMB) to conduct oversight.
• Refer findings to the Department of Justice (DOJ) for prosecution of corruption and mismanagement.

This power derives from the Take Care Clause (Article II, Section 3) of the U.S. Constitution, which mandates that the president “shall take Care that the Laws be faithfully executed.”

When Can a Federal Judge Intervene?

While a judge cannot prohibit the president from investigating wasteful spending, courts may intervene if: The president’s actions violate federal law

Example: If a president tries to impound congressionally appropriated funds without legal justification (as restricted by the Impoundment Control Act of 1974), a court may rule against such actions.

—A federal agency, contractor, or official challenges the investigation

If an entity subject to investigation claims the president’s actions violate due process or exceed executive authority, courts may review the case.

—Executive action is seen as politically retaliatory

If an investigation is perceived as targeting political opponents or whistleblowers without clear legal basis, courts may intervene under First Amendment or due process grounds.

—Congressional oversight conflicts arise

If Congress asserts that an executive investigation interferes with its constitutional spending power (Article I, Section 9), a legal dispute may reach the courts.

What a Judge Cannot Do

• A judge cannot prevent the president from ordering an investigation into government spending or corruption.
• A judge cannot prohibit the president from referring criminal findings to the DOJ for prosecution.
• A judge cannot override the president’s power to enforce financial accountability within executive agencies.

How the President Can Challenge a Judicial Ruling

If a federal judge attempts to block a presidential investigation unjustly, the president can:

1. Appeal the ruling to a higher court, potentially reaching the Supreme Court.
2. Invoke executive privilege in cases involving national security or sensitive information.
3. •Use the bully pulpit to expose congressional or judicial obstruction and rally public support for transparency.

There Is Limited Judicial Oversight, Strong Executive Authority

While courts can review specific legal challenges against how a president investigates federal spending, they cannot prohibit the president from initiating, conducting, or acting upon corruption findings. Any judicial intervention would likely be procedural, requiring the president to operate within legal constraints but not stopping the executive from exposing and eliminating wasteful spending.

The president has several legal authorities that empower them to direct inquiries and investigations into improperly disbursed federal funds, corruption, and wasteful spending. These authorities are derived from constitutional powers, federal statutes, and executive branch oversight mechanisms.

Constitutional Authority

Take Care Clause (Article II, Section 3)

“[The President] shall take Care that the Laws be faithfully executed.”

This gives the president broad authority to ensure that federal funds are being spent lawfully and in accordance with congressional appropriations.

Commander-in-Chief Clause (Article II, Section 2)

The president has authority over military-related expenditures, including investigations into fraud and mismanagement within the Department of Defense (DoD) and military contracts.

Statutory Laws Empowering the President

Inspector General Act of 1978 (5 U.S.C. App. 3)

• Establishes Inspectors General (IGs) in executive agencies.
• IGs conduct audits, investigations, and evaluations of government spending.
• The president appoints IGs (for most executive agencies), ensuring oversight accountability.
• The president can direct IGs to investigate waste, fraud, and abuse.

The Chief Financial Officers Act of 1990 (31 U.S.C. § 901 et seq.)

Requires executive agencies to audit financial statements.

The president, through the Office of Management and Budget (OMB), oversees agency compliance with financial accountability standards.

Federal Funding Accountability and Transparency Act of 2006 (31 U.S.C. § 6101)

• Requires federal expenditures to be publicly disclosed.
• The president can direct executive agencies to investigate discrepancies in reported spending.

Impoundment Control Act of 1974 (2 U.S.C. §§ 681–688)

• Limits the president’s ability to withhold congressionally approved funds.
• However, the president can propose rescission or deferrals of funds suspected of being misused.

False Claims Act (31 U.S.C. §§ 3729–3733)

• Empowers the Department of Justice (DOJ) to prosecute fraud related to federal spending.
• The president can direct the DOJ to investigate fraudulent claims and file lawsuits.

Program Fraud Civil Remedies Act of 1986 (31 U.S.C. §§ 3801–3812)

• Allows the executive branch to impose fines and penalties for false claims.
• The president can instruct agencies to use this law to recover misused funds.

Government Performance and Results Act of 1993 (31 U.S.C. §§ 1115–1125)

• Requires federal agencies to set performance goals and report on spending efficiency.
• The president can demand accountability reports and order investigations into non-compliance.

Federal Managers’ Financial Integrity Act of 1982 (31 U.S.C. § 3512)

• Requires agencies to establish internal financial control systems.
• The president, through the OMB and Treasury, can direct audits and reviews.

Presidential Oversight Tools

Office of Management and Budget (OMB)

• OMB reviews agency budgets and can audit spending under presidential direction.
• The president can order OMB to investigate financial irregularities.

The Government Accountability Office (GAO)

While GAO is a legislative branch agency, the president can request its audits and use findings to take executive action.

The Department of Justice (DOJ)

The president can direct the DOJ to investigate and prosecute corruption involving federal funds.

Special Task Forces & Executive Orders

The president can create special task forces (e.g., anti-corruption or financial fraud teams) via executive orders.

Example: President Reagan’s Executive Order 12333 (intelligence oversight) and President Trump’s Executive Order on Combating Public Sector Corruption (2017).

Can Congress or the Courts Block These Investigations?

• Congress controls appropriations but cannot prohibit the president from investigating corruption.
• Federal courts may intervene if an investigation is deemed politically motivated, but they cannot prevent lawful executive inquiries.
• The Supreme Court has upheld executive oversight authority, particularly in cases related to fraud and mismanagement.

The president has broad constitutional, statutory, and administrative authority to investigate improperly disbursed federal funds, fraud, and wasteful spending. While Congress controls appropriations, the president is fully empowered to direct executive agencies, auditors, and law enforcement to root out corruption and financial mismanagement.

Supreme Court Precedence

Several U.S. Supreme Court decisions have upheld executive oversight authority, particularly regarding the president’s power to investigate fraud, waste, and corruption in federal spending. These cases affirm the president’s constitutional and statutory authority to direct inquiries, order audits, and enforce laws against financial mismanagement.

Myers v. United States (1926) – Executive Control Over Investigations

Key Holding: The president has exclusive authority over executive branch investigations and can remove executive officials responsible for oversight.

• The Supreme Court ruled that Congress cannot interfere with the president’s authority to remove executive officials (in this case, a postmaster).
• This case reinforces that the president has full authority to direct executive agencies and oversee financial accountability.

Relevance: The ruling supports the president’s ability to appoint or remove Inspectors General (IGs) and agency heads responsible for investigating corruption.

Humphrey’s Executor v. United States (1935) – Limits on Removal but Not on Oversight

Key Holding: The president cannot remove independent agency officials at will but still maintains oversight power over executive departments.

• The Court ruled that Congress can create independent agencies but cannot strip the president of executive oversight powers over financial mismanagement.

Relevance: While the ruling limits arbitrary removals of officials in agencies like the Federal Trade Commission (FTC), it does not prevent the president from ordering investigations into fraud or corruption.

United States v. Nixon (1974) – Executive Privilege and Accountability

Key Holding: The president cannot use executive privilege to obstruct investigations into government misconduct.

• The Court ruled against President Nixon’s attempt to withhold evidence in the Watergate investigation.

Relevance: This case affirms that the executive branch is subject to accountability mechanisms and that investigations into government corruption must proceed unhindered.

Morrison v. Olson (1988) – Presidential Oversight Over Investigations

Key Holding: The president has broad authority to direct and oversee federal investigations into corruption.

• The Court upheld the constitutionality of an independent counsel law but recognized that the executive branch has the primary authority to investigate and prosecute fraud and corruption.

Relevance: This decision reinforces the president’s ability to investigate mismanagement and enforce anti-corruption laws through agencies like the Department of Justice (DOJ) and Inspectors General.

Free Enterprise Fund v. Public Company Accounting Oversight Board (2010) – President’s Power to Remove Oversight Officials

Key Holding: The president must have the power to remove officials involved in oversight and investigations.

• The Court struck down restrictions that prevented the president from removing members of an independent oversight board.

Relevance: This ruling supports the president’s ability to oversee and investigate financial fraud by ensuring executive control over watchdog agencies.

Trump v. Mazars USA, LLP (2020) – Presidential Oversight of Financial Records

Key Holding: The president has a strong role in financial oversight, but investigations must align with constitutional authority.

• The Court ruled that Congress must have a legitimate legislative purpose when seeking the president’s financial records.

Relevance: This case confirms the principle of executive oversight while ensuring financial investigations comply with constitutional limits.

The Supreme Court Precedents Strongly Uphold Presidential Oversight

These cases establish that:

1. The president has broad authority to oversee executive agencies and investigate government spending (Myers, Morrison, Free Enterprise Fund).
2. The executive branch cannot be obstructed from investigating fraud and corruption (United States v. Nixon).
3. Congress cannot interfere with executive oversight power, though independent agencies have some protections (Humphrey’s Executor, Trump v. Mazars).

The president has the legal authority to direct investigations into improper spending, fraud, and corruption within the federal government without interference from Congress or the judiciary, unless those investigations violate constitutional or statutory limits.

Sources and Citations:

The following is a list of sources and citations for the constitutional provisions, federal statutes, and Supreme Court decisions I referenced in our discussion about presidential power to investigate corruption and wasteful spending.

Constitutional Provisions

• Article II, Section 3 – The Take Care Clause
• “[The President] shall take Care that the Laws be faithfully executed.”
• Source: U.S. Constitution, Article II, Section 3

Link: National Archives

Article II, Section 2 – Commander-in-Chief Clause

• Provides the president with authority over military spending oversight.
• Source: U.S. Constitution, Article II, Section 2
• Article I, Section 9, Clause 7 – The Power of the Purse
• “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.”
• Source: U.S. Constitution, Article I, Section 9

Federal Laws Granting Oversight Powers

• Inspector General Act of 1978 (5 U.S.C. App. 3)
• Establishes Inspectors General (IGs) to conduct financial audits and corruption investigations.
• Source: Public Law 95-452, 92 Stat. 1101
• Link: GovInfo.gov

Chief Financial Officers Act of 1990 (31 U.S.C. § 901 et seq.)

• Requires federal agencies to conduct financial audits and report on waste.
• Source: Public Law 101-576, 104 Stat. 2838
• Link: Congress.gov

Federal Funding Accountability and Transparency Act of 2006 (31 U.S.C. § 6101)

• Mandates public disclosure of federal expenditures for transparency.
• Source: Public Law 109-282, 120 Stat. 1186
• Link: Congress.gov

 Impoundment Control Act of 1974 (2 U.S.C. §§ 681–688)

• Limits the president’s ability to withhold congressionally approved funds but allows for requests to rescind misused spending.
• Source: Public Law 93-344, 88 Stat. 297
• Link: GovInfo.gov

False Claims Act (31 U.S.C. §§ 3729–3733)

• Allows the Department of Justice (DOJ) to prosecute fraud involving federal funds.
• Source: Revised in 1986, Public Law 99-562
• Link: Congress.gov

Government Performance and Results Act of 1993 (31 U.S.C. §§ 1115–1125)

• Requires federal agencies to report on financial efficiency.
• Source: Public Law 103-62, 107 Stat. 285
• Link: GovInfo.gov

Federal Managers’ Financial Integrity Act of 1982 (31 U.S.C. § 3512)

• Mandates internal financial control systems within executive agencies.
• Source: Public Law 97-255, 96 Stat. 814
• Link: GovInfo.gov

U.S. Supreme Court Decisions on Executive Oversight

• Myers v. United States, 272 U.S. 52 (1926)
• Holding: The president has exclusive control over executive officials responsible for investigations.
• Source: U.S. Supreme Court, 272 U.S. 52 (1926)
• Link: Justia

Humphrey’s Executor v. United States, 295 U.S. 602 (1935)

• Holding: The president cannot remove independent agency officials at will but retains oversight authority.
• Source: U.S. Supreme Court, 295 U.S. 602 (1935)
• Link: Justia

United States v. Nixon, 418 U.S. 683 (1974)

• Holding: The president cannot use executive privilege to obstruct investigations into government misconduct.
• Source: U.S. Supreme Court, 418 U.S. 683 (1974)
• Link: Justia

Morrison v. Olson, 487 U.S. 654 (1988)

• Holding: The president has authority to direct federal investigations into fraud and corruption.
• Source: U.S. Supreme Court, 487 U.S. 654 (1988)
• Link: Justia

Free Enterprise Fund v. Public Company Accounting Oversight Board, 561 U.S. 477 (2010)

• Holding: The president must have power to remove officials involved in financial oversight.
• Source: U.S. Supreme Court, 561 U.S. 477 (2010)
• Link: Justia

Trump v. Mazars USA, LLP, 591 U.S. ___ (2020)

• Holding: The executive branch retains a strong role in financial oversight, but investigations must follow constitutional procedures.
• Source: U.S. Supreme Court, 591 U.S. ___ (2020)
• Link: Justia

Each of these sources confirms the constitutional, statutory, and judicial basis for presidential oversight of government spending. If you need further references or case law analysis, let me know! I’m happy to help with historical, legal, or policy research as needed.

Categories: Robert Clifton Robinson