# GAO Flags Withheld Appropriated Funds

The Government Accountability Office has repeatedly found that the administration improperly withheld funds Congress appropriated under the Impoundment Control Act, and some lawmakers are urging GAO to consider seeking judicial enforcement. Congress also needs to enact funding legislation by December 11, 2026—58 days from October 14—which leaves federal agencies and contractors exposed to uncertainty in funding timing and contract execution.

- Contractors should account for possible funding-related delays to contract actions and execution as agencies work under the pending funding deadline.
- Agencies and contractors can use agency funding notices to assess the effect of appropriations timing on planned work, as the signal recommends.
- The dispute over control of appropriated funds may affect how quickly agencies can make funds available for procurement; the signal does not identify specific contracts or procurement values.

**Jurisdictions:** federal
**Topics:** Grants & Funding
**Published:** October 13, 2026

### Government Entities
- Government Accountability Office (GAO)
- U.S. Congress
- Office of Management and Budget (OMB)

### Key Quotes
> But I think this tussle between the two branches may only get more pronounced as we head into next year.
> — Loren Duggan, Bloomberg Government guest

### Sources
- [
        Is Congress losing control over the spending power of the purse? - Federal News Network](https://federalnewsnetwork.com/congress/2026/10/is-congress-losing-control-over-the-spending-power-of-the-purse) - Federal News Network