Antideficiency Act

In the nineteenth century agencies sometimes spent their annual funds early and then presented Congress with deficiencies it felt bound to cover, undermining the power of the purse. Congress responded with a series of laws beginning in 1870 and strengthened in 1905, 1906, and 1950, together known as the Antideficiency Act. It forbids officers and employees from making or authorizing expenditures or obligations exceeding available appropriations, or before an appropriation is made, unless authorized by law, and from accepting voluntary services except in emergencies involving the safety of human life or the protection of property.

The act also requires the Office of Management and Budget to apportion funds to agencies, usually by quarter or by project, so they do not run out early. Violations must be reported to the President, Congress, and the Government Accountability Office, and officials may face administrative discipline, fines of up to $5,000, and up to two years in prison for knowing and willful violations, though no one is known to have been prosecuted. GAO issues decisions finding violations, which are common in small amounts.

The act became the legal basis for government shutdowns after Attorney General Benjamin Civiletti concluded in 1980 and 1981 that agencies must halt most operations when appropriations lapse. Only activities funded by other means or excepted to protect life and property, or necessarily implied by law, may continue, and excepted employees work without pay until funding resumes. A 2019 law guarantees back pay for federal employees after a shutdown. Disputes during the 2025 shutdown over layoffs and which activities could continue tested how the act applies.