Coercive deficiency

In United States federal government finance, coercive deficiency is a process by which budget holders can allow themselves to run out of money prior to the end of a fiscal period, on the assumption that Congress will then feel morally obligated to supply the missing funding in order to prevent cessation of services or breach of contracts.^[1]

The phrase was coined by American political economist and historian Lucius Wilmerding, Jr.^[2] in his 1943 book The Spending Power: A History of the Efforts of Congress to Control Expenditures.^[3]

The first attempt to control for coercive deficiency requests to Congress was the Anti-Deficiency Act of 1870, which prevented agencies from obligating more funds than had been appropriated by Congress.^[4][5] Historians have documented examples of coercive deficiencies at the U.S. Post Office in 1879 and 1947 and at the Defense Department.^[3]