Insight into the Appropriations Process
With Congress out for August Recess, we wanted to provide an overview of the appropriations process that has been underway this past summer and will pick up again in September.
The Senate Appropriations Committee has already passed all 12 of the bills, which will head to the Senate floor upon their return. The House Appropriations Committee has passed all bills except its Commerce, Justice, and Science bill and Labor, HHS, and Education bill. You can view an appropriations status tracker here.
Until the chambers reconvene, here is some background information on the daunting appropriations process that takes place each fiscal year.
What are Appropriations?
Appropriations are decisions made by Congress about how to allocate a portion of federal spending. In general, the appropriations process addresses the discretionary portion of the federal budget – spending ranging from national defense to food safety to education to federal employee salaries – but excludes mandatory spending, such as Medicare and Social Security, which is spent automatically according to formulas.
What is the President’s Budget?
The president submits a budget to Congress by the first Monday in February every year. The budget contains estimates of federal government income and spending for the upcoming fiscal year and also recommends funding levels for the federal government. Congress then must pass appropriations bills based on the president's recommendations and Congressional priorities.
Appropriations Subcommittee Process
The House and Senate develop their own budget resolutions to set spending levels. These will often deviate from each other as well as from the President's request. The House and Senate Appropriations Subcommittees (12) hold hearings to examine the budget requests and needs of federal spending programs. The House and Senate then produce appropriations bills to fund the federal government. These bills are "marked up," amended as needed, and approved by the full Appropriations Committee in each chamber.
What do the Appropriations Subcommittees do?
The Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies oversees funding for the USDA (except the Forest Service) and other agencies;
The Subcommittee on Commerce, Justice, Science, and Related Agencies oversees funding for the Department of Commerce, the Department of Justice, NASA, and other agencies;
The Subcommittee on Defense oversees funding for the military, the intelligence community, and other national defense-related agencies;
The Subcommittee on Energy and Water Development oversees funding for the Department of Energy, the U.S. Army Corps of Engineers, and other agencies;
The Subcommittee on Financial Services and General Government oversees funding for the Department of the Treasury, the Executive Office of the President, and other government functions;
The Subcommittee on Homeland Security oversees funding for the Department of Homeland Security;
The Subcommittee on Interior, Environment, and Related Agencies oversees funding for the Department of the Interior, the EPA, the U.S. Forest Service, and a number of independent agencies;
The Subcommittee on Labor, Health and Human Services, Education, and Related Agencies oversees funding for the Department of Education, the Department of Health and Human Services, the Department of Labor, and other agencies;
The Subcommittee on Legislative Branch oversees funding for the House of Representatives (the Senate Legislative Branch oversees funding for the U.S. Senate), the U.S. Capitol, the Library of Congress, and other legislative branch functions;
The Subcommittee on Military Construction, Veterans Affairs, and Related Agencies oversees funding for military construction (including military housing), the Department of Veterans Affairs, and related agencies;
The Subcommittee on State, Foreign Operations, and Related Programs oversees funding for the U.S. State Department, USAID, and related programs;
The Subcommittee on Transportation, Housing and Urban Development, and Related Agencies oversees funding for the Department of Transportation, HUD, and related agencies.
Appropriations Conference and Passage
After approval by the Appropriations Committees, the bills head to the House and Senate floors where they may be further amended and eventually passed. Most times, the bills passed by House and Senate differ in some significant ways and must be reconciled. Final Passage - Once a final bill has been negotiated between the two chambers, it must then pass the House and Senate and be signed by the President. If Congress cannot agree on new funding levels before Oct. 1, a continuing resolution is required.
What is a Continuing Resolution?
If Congress does not pass all appropriations measures by the start of the fiscal year (October 1), it has to enact a continuing resolution to keep the government running. The period where funding has expired for the fiscal year and a continuing resolution is unable to pass is commonly referred to a "government shutdown."
What is Appropriations Report Language?
By long-standing practice, the Appropriations Committees use the written reports that accompany bills to provide detailed information about congressional intent concerning how agencies should use appropriated funds. Because the text of these reports is not included in the legislative text, it does not establish a statutory requirement or obligation that the agency must follow. Nevertheless, agencies tend to heed report language, since it indicates congressional intent. Each chamber subcommittee releases its own report, and then a "joint explanatory statement" is issued with the conferenced bill.