Guide to the Federal Budget Process
Each year, the president and Congress make decisions about how government funds will be spent. You can influence Congress by engaging in the federal budget process and urging members to allocate resources to address the crises of extreme hunger, poverty and disease. The following provides a description of the annual federal appropriations process and how you can make a difference:
Step 1. The president proposes a budget
[The first Monday of February]
The president presents Congress with a budget request for the next fiscal year. The budget projects revenue and provides a plan for how that revenue will be used. The president's request signals his priorities to Congress and how much funding the president thinks is needed in each budget area. The president and the administration continue to interact with Congress at each step in the funding process, trying to convince Congress to approve the administration's spending priorities.
Step 2. Congress passes a budget resolution
[March – May]
After the president submits his budget proposal, the Senate Budget Committee and the House Budget Committee each develop their own separate budget resolution, taking into account requests from leadership and congressional committees. The full House must consider and approve the House budget resolution, while the full Senate must consider and approve the Senate budget resolution. The House and Senate try to negotiate the differences in the budget resolutions and agree on a single joint resolution that is approved by both chambers. The budget resolution does not have the force of law but provides a blueprint and a target for spending.
Step 3: Appropriations Committees Propose Annual Funding Levels
[April- September]
Based on the budget resolution, the House and Senate Appropriations chairmen allocate a funding level for each discretionary spending bill. The 12 appropriation subcommittees in the Senate and 10 in the House then draft an appropriations bill. The State, Foreign Operations Appropriations Subcommittee in the Senate and the Foreign Operations Appropriations Subcommittee in the House are responsible for most foreign aid spending, including most poverty-focused development assistance. It is up to each of these subcommittees to decide, within its spending limit, the funding levels for different programs in its jurisdiction. Once the subcommittee approves the spending bill, the bill moves to the full House and Senate appropriations committees for approval.
Step 4. The House and the Senate each pass their appropriation bills
[Summer – Fall]
Each chamber must approve each of the appropriations bills. Senators and representatives can increase specific funding levels by offering or voting for amendments when the appropriations bills go to the House or Senate floor for debate and final passage.
Step 5. Congress approves all appropriations bills
[Fall]
Differences between the House and Senate versions must be worked out through a conference committee. Congress is supposed to complete action on all the spending bills by September 30, which is the end of the fiscal year. If any bills are not finished by then, Congress can pass a temporary funding bill, which defines funding levels until final agreements are reached. These extensions are called Continuing Resolutions. The appropriations process is complete when the president signs each of the appropriations bills into law.
At every step of the process, you and other constituents can make a difference. Urge your members of Congress to make hungry and poor people a priority in their budget decisions.
