Bailout's constitutionality questioned

WASHINGTON, Jan. 16 (UPI) -- One conservative group is raising warning flags about the constitutionality of the $700 billion bailout for U.S. financial markets.

The FreedomWorks Foundation argues that the Emergency Economic Stabilization Act of 2008 passed in October violates constitutional principles that restrict the amount of power the legislative branch can delegate to the executive branch, The New York Times reported Friday.

The foundation, a self-proclaimed leader in the "the fight for lower taxes, less government and more freedom," said it plans to file a lawsuit against the program, although officials haven't indicated when.

The group, led by former Republican House Majority Leader Dick Armey of Texas, sent a memo to Congress Thursday, outlining its argument that "when Congress delegates so much authority to the executive branch with so few rules to guide its discretion, Congress unconstitutionally transfers its lawmaking power to the executive."

The bailout's size alone takes it beyond other congressional delegations of authority found to be constitutional, the memo said.

"As far as we can tell, Congress has never delegated so much power to an executive agency with so little to constrain the agency's discretion," the memorandum said, resulting in "a classic violation of the non-delegation principle."