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The simple version: The three branches of the U.S. government are the Legislative branch, the Executive branch, and the Judicial branch. The Legislative branch is described in Article I of the Constitution; it is comprised of the Senate and the House of Representatives; it makes and passes laws and the national budget; it votes on bills; approves the appointed federal judges and can declare war. The Executive branch is described in Article II of the Constitution; it is comprised of the President of the United States and his Cabinet; it enforces laws; makes treaties; and the President signs or vetoes bills. The Judicial branch is described in Article III of the Constitution; it is comprised of all the courts in the land; it interprets laws and punishes lawbreakers; it decides whether laws are constitutional or not.
Article III, Section 1, of the Constitution prescribes creation of the US Supreme Court, and gives Congress the authority to establish lower courts, as necessary. Congress formally established the federal judiciary in the Judiciary Act of 1789.The Framers of the Constitution placed the court system in the Judicial branch because "Judicial" refers to "judging," making the Judicial branch the most appropriate for the courts.Article III Section 1. The judicial power of the United States, shall be vested in one Supreme Court, and in such inferior courts as the Congress may from time to time ordain and establish. The judges, both of the supreme and inferior courts, shall hold their offices during good behaviour, and shall, at stated times, receive for their services, a compensation, which shall not be diminished during their continuance in office.
The Legislative branch according to the US constitution has the power of the purse over the Judicial branch. They determine the funding for the Judicial branch and can determine the working elements of the Judicial Branch. The Legislative branch also has the power to confirm Judicial nominees to the Judicial Branch and the confirmation process provides a series of checks to confirm the soundness of the judicial appointee.
Fourth Chief Justice of the US Supreme Court, John Marshall. This idea is clearly stated in his opinions, beginning with Marbury v. Madison, (1803).For more information, see Related Questions, below.