The federal budget process is a complex undertaking, involving numerous stages and actors. Once 302a allocations are determined, the process moves to the appropriations committees in the House and Senate.
The Appropriations Committees are among the most influential in Congress, responsible for setting funding levels for individual federal programs. This is achieved through 12 separate appropriations bills, each developed by a specific subcommittee, covering individual federal agencies or groups of agencies. An example is the Labor, Health and Human Services, Education, and Related Agencies appropriations bill, which includes funding for student financial aid, the National Institutes of Health, the Departments of Labor, Health and Human Services, Education, and other smaller agencies such as the Corporation for Public Broadcasting.
The chairs of the appropriations subcommittees, guided by the appropriations committee chairperson, distribute the 302a allocation among the 12 subcommittees. This distribution establishes the total funding available for each appropriations bill, known as the “302b allocation.” Essentially, the 302a allocation represents the total federal funding available, while the 302b allocation represents one of the 12 slices of that funding “pie.”
Subcommittee Activities and Bill Creation
With their 302b allocation in hand, the subcommittees then allocate funding to specific programs under their purview. This involves several key activities:
- Public Hearings: Subcommittees hold public hearings, inviting agency secretaries to testify regarding their budget requests.
- Legislator Requests: Legislators and their staff, even those outside the subcommittees, submit requests advocating for specific funding levels for programs they support.
- Advocate Meetings: Committee staff often meet with program advocates to discuss the funding landscape and priorities.
Following these activities, the subcommittee staff drafts an appropriations bill, which is then brought to the full subcommittee for a vote. Amendments are possible at this stage, but not typical. If the bill passes the subcommittee, it proceeds to the full Appropriations Committee, often with further amendments.
House and Senate Differences and “Riders”
The appropriations process operates similarly in both the House and Senate. However, the two chambers may adopt different 302a and 302b allocations, leading to potentially significant differences in their versions of the appropriations bills. These differences can amount to millions or even billions of dollars. Even when allocation levels are similar, disparities often arise in the funding levels assigned to specific programs within each bill.
Furthermore, the inclusion of policy changes, or “riders,” in appropriations bills has become increasingly common. A typical rider might prohibit an agency from using allocated funds to perform a specific action opposed by legislators. Other riders may implement policy changes designed to reduce program costs, such as adjustments to Pell Grant eligibility criteria to address projected funding shortfalls. Variations in these riders between the House and Senate further complicate the process of reaching agreement on a unified bill.
The October 1st Deadline and Government Shutdowns
Ideally, all 12 appropriations bills are passed in “regular order,” meaning full passage through both chambers of Congress and presidential signature by October 1st, the start of the federal fiscal year. Failure to meet this deadline can trigger a government shutdown, forcing federal agencies to suspend all nonessential discretionary functions until a budget is enacted. While government shutdowns were once rare, they have become more frequent in recent years, with three shutdowns occurring since 2013, ranging from two to 34 days.
Continuing Resolutions, Omnibus Bills, and Presidential Action
In recent years, it is rare for all, or even any, appropriations bills to be passed in regular order. Congress often relies on continuing resolutions (CRs), short-term spending bills that typically maintain funding at the previous year’s levels. CRs can last for a few days, weeks, or months, and are renewed as negotiations continue. CRs may also include policy provisions and revisions to funding levels.
Given the number of bills and potential areas of disagreement between the House and Senate, Congress often struggles to pass individual appropriations bills in a timely manner. As the fiscal year deadline approaches, congressional leadership may negotiate to pass all remaining bills together in a single combined package known as an omnibus bill. In some cases, less controversial bills are passed individually, while the remaining bills are bundled into a “minibus” to complete the funding process. The omnibus approach provides greater negotiating flexibility and reduces the likelihood of a presidential veto over specific issues.
The final step in enacting program funding, regardless of the form the appropriations bills take, is the President’s signature. The President has the authority to veto appropriations bills, which Congress can then attempt to override with a two-thirds vote in both chambers.
In conclusion, the federal budget and appropriations process is a complex and often contentious process. Understanding the various stages and actors involved is crucial for navigating the federal funding landscape.
