Final answer:
The "power of the purse" is Congress's authority to control government spending and taxation, which constitutes a significant check on the executive branch and influences how federal agencies operate based on legislative priorities. Congress utilizes this power through various constitutional provisions, including the necessary and proper clause, giving it expansive control over the federal budget and expenditures.
Step-by-step explanation:
The term "power of the purse" refers to the ability of a legislative body to control government spending and revenue collection. In the United States, this authority is vested in Congress, specifically as delineated in Article I, Section 8, and Section 9 Clause 7 of the U.S. Constitution. Congress exercises the power of the purse through its exclusive capacity to levy taxes, set tariffs, authorize expenditures, raise an army and navy, and borrow money. This power is a significant check and balance against the executive branch, as it requires the President to obtain approval from Congress for all federal spending through appropriations bills. Moreover, Congress can use this fiscal power as a tool to influence the executive branch's agencies by funding or cutting their budgets based on compliance with legislative priorities.
Congress's budgetary authority is amplified by the "necessary and proper clause" or the elastic clause (Section 8 Clause 18), which allows for implied powers that enable Congress to undertake actions deemed necessary to carry out its enumerated powers. For instance, Congress has often used this clause to justify the establishment of federal programs and agencies beyond the explicit listing in the Constitution. The power to appropriate federal funds, coupled with the ability to create debt through issuing bonds, provides Congress with extensive influence over the executive branch's functioning and the overall direction of national fiscal policy.