I know that in 1785 the Continental Navy was disbanded. The constitution was ratified in 1789 and Article 1, Section 8 mandates that Congress "provide and maintain a Navy" but the U.S. Navy wasn't reinstated until the Naval Act of 1794. That leaves 5 years without a Navy, spanning the first two congresses. I know money was an issue but how did they legally justify this? Did checks and balances fail or was their some legal loophole they exploited?
The Constitution lists powers granted to Congress, preceded by the words "The Congress shall have power" followed by various phrases including "To provide and maintain a Navy".
This wording is very specific. If the Constitution had read that "Congress shall provide and maintain a Navy", that would be a requirement of the Congress as a matter of its function; that is, there would be no choice and no discretion in the matter. As worded, the Constitution gives Congress the authority "to provide and maintain Navy" when it sees fit.