Found the answer to the withholding of funds issue.
Congress itself may order a hold on allocated funds. And has. Look...hundreds of times, without issue.
https://www.justsecurity.org/wp-content/uploads/2019/12/ukraine-clearinghouse-letter_from_omb_gc_paoletta_to_gao_gc_armstrong-2019.12.11.pdf
Page 8.
In fiscal years 2017-2019 alone, 0MB is aware of Congressional committees directing that billions of dollars of funds appropriated to State and the U.S. Agency for International Development (USABD) be withheld 10 days or more beyond the statutory notice period:
• In FY 2017, Congressional committee holds of 10 days or more beyond the statutory notice period affected more than $6.7 billion in State and USAID funds. This included one hold of 321 days, one hold of 228 days, and three holds of more than 100 days past the statutory notice period. In total, there were at least 115 instances of Congressionally directed holds in foreign aid funds in FY 2017 that extended 10 days or more past the statutory notice period. 20 Id. See also B-221412 (Feb. 12, 1986). 0MB's position that programmatic delays, including programmatic delays that require the use of its apportionment authority, do not constitute deferrals is not new. That distinction was made in 2002. As a result, no President since that time has reported such actions as deferrals. 21478 U.S. 714 (1986). 22 462 U.S. 919 (1983). 23 As the Supreme Court has noted: [A]n agency's allocation of funds from a lump-sum appropriation requires "a complicated balancing of a number of factors which are peculiarly within its expertise": whether its "resources are best spent" on one program or another; whether it "is likely to succeed" in fulfilling its statutory mandate; whether a particular program "best fits the agency's overall policies"; and, "indeed, whether the agency has enough resources" to fund a program "at all." .. .Of course, an agency is not free simply to disregard statutory responsibilities: Congress may always circumscribe agency discretion to allocate resources by putting restrictions in the operative statutes (though not, as we have seen, just in the legislative history). .. And, of course, we hardly need to note that an agency's decision to ignore congressional expectations may expose it to grave political consequences. Lincoln v. Vigil, 508 U.S. 182, 193 (1993) (internal citations omitted). 24 0MB is aware of instances in which Members of Congress demanded that agencies withhold funds for months— and even years—beyond the period required by statute for reasons wholly unrelated to the purpose of the appropriation. 0MB respectfully suggests that GAO take an interest in this practice, as well. • In FY 2018, Congressional committee holds of 10 days or more beyond the statutory notice period affected more than $3.5 billion in State and US AID funds. This included one hold of 201 days and four holds of more than 100 days past the statutory notice period. In total, there were at least 148 instances of Congressionally-directed holds in foreign aid funds in FY 2018 that extended 10 days or more past the statutory notice period. • In FY 2019, Congressional committee holds of 10 days or more beyond the statutory notice period affected more than $762 million in State and USAID funds. In total, there were at least 31 instances of Congressionally-directed holds in foreign aid funds in FY 2019 that extended 10 days or more past the statutory notice period.
Congress itself may order a hold on allocated funds. And has. Look...hundreds of times, without issue.
https://www.justsecurity.org/wp-content/uploads/2019/12/ukraine-clearinghouse-letter_from_omb_gc_paoletta_to_gao_gc_armstrong-2019.12.11.pdf
Page 8.
In fiscal years 2017-2019 alone, 0MB is aware of Congressional committees directing that billions of dollars of funds appropriated to State and the U.S. Agency for International Development (USABD) be withheld 10 days or more beyond the statutory notice period:
• In FY 2017, Congressional committee holds of 10 days or more beyond the statutory notice period affected more than $6.7 billion in State and USAID funds. This included one hold of 321 days, one hold of 228 days, and three holds of more than 100 days past the statutory notice period. In total, there were at least 115 instances of Congressionally directed holds in foreign aid funds in FY 2017 that extended 10 days or more past the statutory notice period. 20 Id. See also B-221412 (Feb. 12, 1986). 0MB's position that programmatic delays, including programmatic delays that require the use of its apportionment authority, do not constitute deferrals is not new. That distinction was made in 2002. As a result, no President since that time has reported such actions as deferrals. 21478 U.S. 714 (1986). 22 462 U.S. 919 (1983). 23 As the Supreme Court has noted: [A]n agency's allocation of funds from a lump-sum appropriation requires "a complicated balancing of a number of factors which are peculiarly within its expertise": whether its "resources are best spent" on one program or another; whether it "is likely to succeed" in fulfilling its statutory mandate; whether a particular program "best fits the agency's overall policies"; and, "indeed, whether the agency has enough resources" to fund a program "at all." .. .Of course, an agency is not free simply to disregard statutory responsibilities: Congress may always circumscribe agency discretion to allocate resources by putting restrictions in the operative statutes (though not, as we have seen, just in the legislative history). .. And, of course, we hardly need to note that an agency's decision to ignore congressional expectations may expose it to grave political consequences. Lincoln v. Vigil, 508 U.S. 182, 193 (1993) (internal citations omitted). 24 0MB is aware of instances in which Members of Congress demanded that agencies withhold funds for months— and even years—beyond the period required by statute for reasons wholly unrelated to the purpose of the appropriation. 0MB respectfully suggests that GAO take an interest in this practice, as well. • In FY 2018, Congressional committee holds of 10 days or more beyond the statutory notice period affected more than $3.5 billion in State and US AID funds. This included one hold of 201 days and four holds of more than 100 days past the statutory notice period. In total, there were at least 148 instances of Congressionally-directed holds in foreign aid funds in FY 2018 that extended 10 days or more past the statutory notice period. • In FY 2019, Congressional committee holds of 10 days or more beyond the statutory notice period affected more than $762 million in State and USAID funds. In total, there were at least 31 instances of Congressionally-directed holds in foreign aid funds in FY 2019 that extended 10 days or more past the statutory notice period.