Impoundment
I was reading this article about the White House plan to oversee reopening of states after the Coronavirus shutdown…
I am not so quick to dismiss the president’s power to regulate the re-opening of state businesses. While the federal government lacks a police force, they do control the purse strings for billions in federal finding that can be conditioned on state’s reopening. Additionally, the federal government has wide latitude over interstate businesses and facilities that cross lines.
If Congress adopts a law, the federal government can clearly say an interstate accommodation must be allowed to operate. That’s pretty clear with the Heart of Atlanta Supreme Court case. Congress can also tie Medicaid or Highway funding to states allowing businesses being reopened.
While the Impoundment Control Act of 1974 would clearly prohibit most appropriated funding to the states from being impounded by by the President other funding is discretionary and the President and his administrative agencies could set out clear guidelines to ensure state compliance before the discretionary funding is released. Some of that would push up against the Impoundment Control Act but the state might reopen on its own before winding through the courts.
