Every year, Congress decides how to spend federal dollars.
The process blends lawmaking, negotiation, and oversight — translating national priorities into a detailed financial plan.
1. The Federal Budget Framework
The federal budget is a blueprint, not a law.
The President submits a proposal to Congress each year, outlining spending and revenue goals.
Congress responds with its own budget resolution, setting overall limits on discretionary spending.
Budget season usually begins early in the year and sets the tone for appropriations debates.
2. Appropriations vs. Authorizations
Congress distinguishes between authorization (permission to act) and appropriation (permission to spend).
Authorization bills create or continue programs and set policy goals.
Appropriations bills provide the actual funding to carry them out.
Both are essential — authorization without appropriation is just an idea.
3. The 12 Annual Appropriations Bills
Congress divides discretionary spending into twelve bills, each covering different areas of government.
Examples: Defense, Homeland Security, Transportation, Energy & Water, Labor–HHS–Education.
These bills originate in the Appropriations Committees of both chambers.
Each bill funds specific agencies and programs for the upcoming fiscal year.
4. Negotiation and Conference
After both the House and Senate pass their versions of each appropriations bill, differences must be resolved.
Conference committees merge the two versions into a single compromise bill.
That version then goes back to both chambers for final approval.
Timely passage prevents funding lapses and government shutdowns.
5. Continuing Resolutions and Omnibus Bills
If Congress can’t finish on time, it passes a Continuing Resolution (CR) to extend current funding levels temporarily.
Omnibus bills combine multiple appropriations into one large package to avoid shutdowns.
These tools are stopgaps, not ideal governance.
CRs buy time — but frequent reliance signals gridlock.
6. Why It Matters
The budget and appropriations process is democracy in dollars — a reflection of national priorities.
Every line of funding is a statement about what the country values most.