Final answer:
The principle referred to is the 'power of the purse' in Congress, which is the authority to control government spending and influence public policy by funding or cutting budgets of federal agencies.
Step-by-step explanation:
The principle being described in the student's question is related to the power of the purse in Congress. This term refers to the constitutional power granted to Congress to raise and spend money. Congress uses this authority to influence and control the executive branch, public policy, and to ensure that federal agencies adhere to legislative priorities. The case where a legislature allocates more funding to agencies that comply with its direction or cuts the budgets of those who do not is a direct example of the power of the purse.
Section 9, Clause 7 of the U.S. Constitution grants Congress the sole authority to control government spending. Agencies rely on Congress for their budgets, which can be increased or decreased based on compliance with legislative directives. This serves as an important check on executive power.
Understanding the power of the purse is crucial to recognizing how budgetary decisions can affect policy at every level of government, including foreign policy. Through the federal budget process, Congress can influence which areas receive more or less financial support, thereby shaping the nation's priorities.