What established rule states that the expenditure of public funds is proper only when authorized by Congress?

The concept that public funds can only be expended when authorized by Congress is grounded in the principle of Legislative Authority. This principle is fundamental to the structure of the U.S. government and ensures that taxpayer money is spent only for purposes that have been approved through the legislative process. Congress holds the power of the purse, as outlined in the U.S. Constitution, which means that only through their actions can funds be allocated, appropriated, or authorized.

This rule is essential in maintaining accountability and transparency in how public funds are handled. It prevents executive branch entities from unilaterally deciding how taxpayer money is spent, thus providing a system of checks and balances. Understanding Legislative Authority is critical for all aspects of financial management within the public sector, as it lays the groundwork for formalizing the budget process and ensures community representation in financial decision-making.

In contrast, executive discretion pertains to the decisions made by the executive branch regarding the implementation of laws, judicial review involves the courts' power to interpret laws and check legislative and executive actions, and federal oversight typically relates to regulatory frameworks and compliance monitoring rather than the authorization of expenditures.