Appropriation Bills: Laws In The Making

An appropriation bill is a proposed law that authorises the expenditure of government funds. In the United States, Congress passes 12 annual appropriation acts, as well as supplemental appropriation acts, each year. These acts provide budget authority to spend money from the US Treasury for specific purposes. The process begins with the president submitting a budget to Congress, which contains estimates of federal government income and spending for the upcoming fiscal year, as well as recommended funding levels. Congress must then pass appropriation bills based on these recommendations and its own priorities. If Congress does not pass all appropriation measures by the start of the fiscal year (October 1), it must enact a continuing resolution to keep the government running.

The role of the US Congress and the President in the appropriations process

In the United States, an appropriations bill is a piece of legislation that allocates federal funds to specific government departments, agencies, and programs. The US Congress and the President have distinct and important roles in the appropriations process.

The US Constitution grants Congress the power to make appropriations. Congress passes 12 annual appropriation acts, as well as supplemental appropriation acts, each year. These acts provide budget authority to incur obligations and expend funds from the US Treasury for specified purposes. The 12 acts are named the Legislative Branch Appropriations Bill. Congress also has the power to pass continuing resolutions and omnibus spending bills. The former continues pre-existing appropriations at the same levels as the previous fiscal year if Congress has not passed the regular appropriations bills by the start of a new fiscal year. The latter combines multiple appropriations bills into one larger bill.

The House Committee on Appropriations and the Senate Committee on Appropriations have jurisdiction over appropriations bills. Both committees have 12 matching subcommittees, each tasked with working on one of the 12 annual regular appropriations bills. The subcommittees oversee changes such as transfers (when agencies are given permission to move money from one account to another) and reprogramming (when agencies shift funding to different activities within the same account).

The President, meanwhile, has the power to veto appropriations bills. However, the President does not have line-item veto authority, meaning they must either sign the entire bill into law or veto it. The appropriations process begins with the President submitting a budget proposal to Congress by the first Monday in February every year. This proposal includes estimates of federal government income and spending for the upcoming fiscal year, along with recommended funding levels. Congress then passes appropriations bills based on the President's recommendations and its own priorities. If Congress fails to pass all appropriations measures by the start of the fiscal year (October 1), it must enact a continuing resolution to keep the government running. If Congress fails to pass an appropriation bill or a continuing resolution, or if the President vetoes a passed bill, it may result in a government shutdown.

The types of appropriations bills

There are three types of appropriations bills in the United States: regular appropriations bills, continuing resolutions, and supplemental appropriations bills.

Regular appropriations bills are the twelve standard bills that cover the funding for the federal government for one fiscal year, which runs from October 1 to September 30 of the following year. These must be enacted into law by October 1. Traditionally, regular appropriations bills have provided most of the federal government's annual funding.

If Congress has not enacted the regular appropriations bills by the start of a new fiscal year, it can pass a continuing resolution. This continues the pre-existing appropriations at the same levels as the previous fiscal year (or with minor modifications) for a set amount of time. Continuing resolutions typically provide funding at a rate or formula based on the previous year's funding.

Supplemental appropriations bills are the third type. These add additional funding above and beyond what was originally appropriated at the beginning of the fiscal year. They may be used for areas of sudden need, such as disaster relief, or to provide funding for unexpected expenses. For example, both the War in Afghanistan and the Iraq War were funded with a variety of supplemental appropriations.

Appropriations bills can also come in the format of an omnibus spending bill, which is a combination of multiple appropriations bills into one larger bill.

The process of passing an appropriations bill in the US

The Appropriations Process

• The president submits a budget proposal to Congress by the first Monday in February each year. This proposal includes estimates of federal government income and spending for the upcoming fiscal year, along with recommended funding levels.
• Congress then passes appropriations bills based on the president's recommendations and its own priorities. These bills provide funding for federal government operations, personnel, equipment, and activities.
• The House Committee on Appropriations and the Senate Committee on Appropriations have jurisdiction over these bills. Both committees have twelve matching subcommittees, each tasked with working on one of the twelve annual regular appropriations bills.
• The House and Senate consider the appropriations bills simultaneously. Traditionally, the House went first, but now they work in parallel.
• Any differences between the bills passed by the House and the Senate are resolved in the fall.
• The final appropriations bill is then sent to the president for approval. The president has the power to veto the bill, but does not have line-item veto authority, meaning they must either sign the entire bill into law or veto it.

Types of Appropriations Bills

There are three types of appropriations bills:

• Regular Appropriations Bills: These are the standard bills that cover the funding for the federal government for one fiscal year, which runs from October 1 to September 30. They must be enacted into law by October 1.
• Continuing Resolutions: If Congress has not passed all the regular appropriations bills by the start of the fiscal year, it can pass a continuing resolution. This continues the previous year's funding levels with possible minor modifications for a set amount of time.
• Supplemental Appropriations Bills: These bills provide additional funding above what was originally appropriated. They are used for areas of sudden need, such as disaster relief or funding for wars.

The consequences of failing to pass an appropriation bill

In the United States, failing to pass an appropriation bill can result in a government shutdown. This occurred in 2013 when Congress could not agree on any regular appropriations bills before the start of the fiscal year.

In Westminster parliamentary systems, such as in Australia and New Zealand, the defeat of an appropriation bill in a parliamentary vote generally necessitates either the resignation of the government or a general election. An example of this is the 1975 Australian constitutional crisis, where the Senate refused to approve a package of appropriation and loan bills, leading to the Governor-General dismissing the Prime Minister, Gough Whitlam, and appointing a caretaker Prime Minister, Malcolm Fraser, until the next election.

In the Philippines, if Congress fails to pass a General Appropriation Bill for a fiscal year, the General Appropriation Act for the previous fiscal year is used until a bill for the specific year is passed.

How an appropriation bill differs from an authorization bill

An authorization bill is a type of legislation used in the United States to authorize the activities of the various agencies and programs that are part of the federal government. Authorization bills give those things the legal power to operate and exist. They establish, continue, or modify federal programs, and they are a prerequisite for Congress to appropriate budget authority for programs. Authorization is Congress saying that money can be spent on a given item—not that it necessarily will be spent on that item.

Authorization bills are part of an authorization-appropriation process created by House and Senate rules governing spending. The spending process has two steps. First, an authorization bill is enacted. Second, an appropriations bill is enacted. The appropriations bill provides the funding needed for the agency, program, or activity that was just authorized by the enacted authorization bill.

Appropriations are decisions made by Congress about how to allocate a portion of federal spending. Appropriations bills authorize agencies to make payments from the federal treasury. They authorize the enactment of appropriations and specify how appropriated funds are to be used. Appropriations bills provide the discretionary funding available to agencies and programs that have already been authorized.

Authorization bills are handled by most of the standing committees of the House and Senate, while appropriations bills are handled by the United States House Committee on Appropriations and the United States Senate Committee on Appropriations and their twelve subcommittees. Authorization bills are usually for multiple years, while appropriations bills are ordinarily passed each year.

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