Federal Budget Process Notes

The Federal Budget Process

Overview

The federal budget process is how the government decides how to spend money. It comprises five main steps:

  1. President's Budget Request: The president submits a budget proposal to Congress.

  2. Congressional Budget Resolutions: Congress drafts and votes on budget resolutions in the House and Senate.

  3. Appropriations Subcommittees: House and Senate Appropriations Subcommittees mark up appropriations bills.

  4. House and Senate Vote: The House and Senate vote on the appropriations bills and consolidate them into one comprehensive bill.

  5. Presidential Approval: The president signs the appropriations bills into law, enacting the budget.

Historical Context

In 1974, Congress sought to reassert its control over federal spending, concerned about an imbalance of power with the president. Legislation was passed to grant Congress greater authority in managing the budget.

Detailed Breakdown of Each Step

1. The President's Budget Request

  • The president's budget request reflects their spending priorities.

  • The process starts with the president consulting various government departments (e.g., Department of Education, Department of Labor) to understand their budgetary needs.

  • The president then formulates a budget request that includes:

    • Proposed spending levels.

    • Anticipated tax revenues.

    • Whether the government will operate with a surplus or deficit.

  • After preparing the budget request, the president submits it to Congress for review.

2. Congressional Budget Resolutions

  • Congress consists of the House of Representatives and the Senate.

  • Both the House and Senate independently draft and vote on their budget resolutions.

  • A budget resolution represents each chamber's plan for government spending.

  • The Congressional budget resolutions may differ significantly from the president's request due to differing priorities.

  • The House and Senate must agree on a unified budget resolution.

    • If the House and Senate pass different versions, they can:

      • Adopt the other chamber's bill.

      • Enter a conference to reconcile the differences.

  • Conference Committee:

    • A Conference Committee is formed to merge the House and Senate resolutions into a single, compromise resolution.

    • The committee presents the final resolution to both chambers for a vote.

  • If both chambers approve the resolution, it is adopted, but it only serves as a plan. Appropriations bills are required to enact actual spending.

3. Appropriations Bills

  • House and Senate Appropriations Committees:

    • Both chambers have Appropriations Committees responsible for writing appropriations bills.

    • These committees are further divided into 12 subcommittees, each focusing on specific areas of the federal government.

  • Subcommittee Activities:

    • Each subcommittee consults with relevant government officials.

    • They draft a bill that reflects their decisions.

    • The Appropriations Committee reviews these bills, marking them up (making changes or amendments).

    • Once the committee approves a bill, it advances to the next step.

  • This process is repeated for each of the 12 subcommittees in both the House and Senate.

  • The House typically begins the appropriations process before the Senate.

4. Senate and House Vote on Appropriations Bills

  • Once the House Appropriations Committee approves a bill, the full House votes on it.

  • If passed by the House, the bill moves to the Senate.

  • The Senate may draft its own bills concurrently or wait for the House bills.

  • Senate review:

    • Senate Appropriations Subcommittees review the House bills and propose changes.

    • These are then reviewed by the full Senate Appropriations Committee, which can make further revisions.

    • Finally, the full Senate votes on the bill.

  • To pass, a bill must be approved in identical form by both the House and Senate.

  • If either chamber amends a bill, the other must revote on the revised version, which can be a lengthy process.

5. Presidential Approval

  • Once the House and Senate has voted on the same version of the appropriations bill, it goes to the president to be approved. If the president approves, the budget becomes law.

Conclusion

The federal budget process is intricate and often confusing, even for experienced members of Congress.

To learn more, visit AutisticAdvocacy.org/Budget for additional videos in this series, produced by the Autistic Self Advocacy Network.