The federal budget process
How the President, Congress and agencies decide what the government spends each year.
- President's budget: The White House (Office of Management and Budget) proposes a budget, usually in February.
- Budget resolution: Congress may adopt an overall plan setting spending totals. It is not a law.
- Appropriations bills: Twelve subcommittee bills set agency funding for the fiscal year.
- Pass and sign: Both chambers pass them and the President signs, by October 1.
- Stopgap if late: If not done, a continuing resolution keeps funding going; otherwise a shutdown.
- Agencies spend: Agencies obligate the money through contracts, grants and loans, published on USAspending.gov.
The federal fiscal year runs October 1 to September 30. You can see where awarded money ends up on the Money page and on every state and county page.
What you can do
- See which agencies award the most money and where.
- Read the official budget overview on USA.gov.
Words used here
- Appropriation
- Money a legislature sets aside by law for a specific purpose. Government agencies may spend public money only as it has been appropriated.
- Continuing resolution
- A temporary law that keeps government agencies funded, usually at the previous year's levels, when the regular yearly spending bills are not finished by the start of the fiscal year.
- Fiscal year
- The 12-month period a government uses for its budget. The federal fiscal year runs from October 1 to September 30 and is named for the calendar year in which it ends. Most states use July 1 to June 30.
- Obligation
- A binding promise by a government agency to pay money, for example by signing a contract or awarding a grant. Spending data such as USAspending.gov counts money when it is obligated, which can be before it is actually paid out.
- CBO cost estimate
- The Congressional Budget Office's estimate of how a federal bill would change government spending and revenue. CBO is nonpartisan.
Official sources
- Budget of the U.S. Government (USA.gov)
- Office of Management and Budget
- Congressional Budget Office
- USAspending.gov
A simplified overview written by PSI Sci editors from the sources above. Details vary, and exceptions exist. Other guides: How a federal bill becomes law · How a state bill becomes law · Authorization vs. appropriation · Rulemaking and the Federal Register · Ballot measures and propositions · Levels of government · How to contact officials effectively