The Budget and Appropriations
How Congress decides what the government can spend. 12 questions, each answer with its official source.
Test Yourself FirstWho has the power to lay and collect taxes?
Congress
Article I, Section 8 gives Congress the power to lay and collect taxes, duties, imposts and excises.
How can money be drawn from the Treasury?
Only through appropriations made by law
The Appropriations Clause in Article I, Section 9 says no money shall be drawn from the Treasury but in consequence of appropriations made by law.
When does the federal fiscal year begin?
October 1
Federal law sets the fiscal year from October 1 to September 30. Fiscal year 2027, for example, starts on October 1, 2026.
By when does the law ask the president to submit the annual budget?
The first Monday in February
31 U.S.C. 1105 has the president submit the budget on or after the first Monday in January and no later than the first Monday in February.
What is a budget resolution?
A concurrent resolution setting overall spending and revenue levels, which does not go to the president
Section 301 of the Congressional Budget Act provides for an annual concurrent resolution on the budget. It guides Congress's own work and is not signed into law.
Which committees write the bills that fund federal agencies?
The House and Senate Appropriations Committees
House Rule X and Senate Rule XXV give the Appropriations Committees jurisdiction over appropriations of revenue for the support of the government.
How many regular appropriations bills does Congress usually consider each year?
12
Each Appropriations Committee has 12 subcommittees, and each writes one regular bill. They are often combined into larger packages called omnibus bills.
What does an authorization bill do?
It creates or continues a program but does not itself provide the money
Authorizations set up programs and may recommend funding levels; a separate appropriation is needed to actually spend the money.
What is a continuing resolution?
A temporary measure that keeps agencies funded when regular appropriations are not enacted on time
A continuing resolution is a joint resolution that funds the government, usually at existing rates, for a set period while Congress finishes regular appropriations.
What happens when funding for agencies lapses?
Agencies must stop work not allowed without appropriations, which leads to a shutdown
The Antideficiency Act bars agencies from spending or obligating money before it is appropriated, apart from narrow exceptions such as protecting life and property.
What is mandatory spending?
Spending required by existing law, such as Social Security, that does not need yearly appropriations
Mandatory spending flows from laws that set eligibility and benefit rules. Discretionary spending, by contrast, is set each year in appropriations bills.
What is the debt limit?
A cap set by law on how much the Treasury can borrow
31 U.S.C. 3101 limits the total amount of federal debt. Congress raises or suspends the limit by passing a law.
Other Topics
- How Congress WorksHow a Bill Becomes LawFrom introduction to the president's desk
- How Congress WorksThe House435 voting members, elected every two years
- How Congress WorksThe SenateTwo senators per state, six-year terms
- How Congress WorksCommitteesWhere most bills are studied, amended or left to wait
- How Congress WorksFloor Votes and Roll CallsHow members vote and how votes are recorded
- How Congress WorksThe Filibuster and ClotureExtended debate in the Senate and how to end it
- How Congress WorksVetoes and OverridesThe president's no, and how Congress can overcome it
- How Congress WorksImpeachmentHow Congress can charge and remove federal officials
- How Congress WorksTreaties and NominationsThe Senate's advice and consent