Conflicting budget priorities of the Pres. and Congress accentuate the tensions between the exec. and legis. branches inherent in the fed. budget process. Impoundment, whereby a Pres. withholds or delays the spending of funds appropriated by Congress, provides a mechanism for budgetary control during budget implementation in the exec. branch; but Congress retains oversight responsibilities. Many Pres. have called for an item veto, or expanded impoundment authority, to provide them with greater control over fed. spending. Contents of this report: Brief History of Impoundment: Controversies Increase; Impoundment Control Act of 1974; Alternative to an Item Veto; Evolution of Expanded Rescission Proposals; Line Item Veto Act of 1996.