The appropriations process is the heart of Congress's power over the federal purse. It's how lawmakers decide how much money to spend on everything from defense to social programs, shaping national priorities through funding decisions.
Understanding appropriations is crucial for grasping how Congress wields its constitutional authority. It involves complex negotiations between lawmakers, interest groups, and the executive branch, ultimately determining how taxpayer dollars are allocated across the government.
Appropriations Committees and Federal Funds
Role and Responsibilities
The House and Senate Appropriations Committees draft and pass annual that provide funding for federal agencies and programs
Appropriations committees are divided into subcommittees, each responsible for a specific area of federal spending (defense, agriculture, transportation)
The appropriations process begins with the President's budget request, which is then reviewed and modified by the appropriations committees
Appropriations bills must pass both the House and Senate and be signed by the President to become law
Constitutional Power
The power of the purse, or the ability to control government spending, is one of Congress's most important constitutional responsibilities
This power allows Congress to set national priorities and ensure that taxpayer dollars are spent efficiently and effectively
The appropriations process is a key tool for Congress to exercise oversight over the executive branch and hold agencies accountable for their performance
The President can veto appropriations bills, but Congress can override a veto with a two-thirds majority in both chambers
Discretionary vs Mandatory Spending
Discretionary Spending
refers to funds that Congress appropriates annually through the budget process
Examples of discretionary spending include defense, education, transportation, and foreign aid programs
Discretionary spending makes up about one-third of the
Congress can adjust discretionary spending levels each year based on changing priorities and fiscal constraints
Mandatory Spending
, also known as direct spending, refers to funds that are automatically allocated based on eligibility criteria set by law
Examples of mandatory spending include Social Security, Medicare, Medicaid, and food assistance programs
Mandatory spending accounts for about two-thirds of the federal budget
Changing mandatory spending requires amending the underlying laws that govern those programs, which is politically difficult
Interest on the National Debt
Interest on the national debt is a third category of federal spending that is considered mandatory because it must be paid to avoid default
As the national debt grows, interest payments consume an increasing share of the federal budget
In fiscal year 2020, interest on the national debt totaled $345 billion, or about 8% of total federal spending
Reducing the deficit and slowing the growth of the national debt is essential to managing interest costs over the long term
Impact of Continuing Resolutions and Shutdowns
Continuing Resolutions
If Congress fails to pass appropriations bills by the start of the fiscal year on October 1, it may pass a continuing resolution (CR) to temporarily fund government operations at the previous year's levels
CRs can last for a few days, weeks, or even months, and may be used to buy time for further budget negotiations or to avoid a
CRs create uncertainty for federal agencies and recipients of government funds, as they cannot plan for the future or start new programs
Repeated use of CRs can lead to inefficiencies and waste, as agencies may engage in hurried spending at the end of a CR period
Government Shutdowns
Government shutdowns occur when Congress fails to pass appropriations bills or a CR, leading to a lapse in funding and the suspension of non-essential government services
Shutdowns can result in furloughs for federal employees, closed national parks and museums, delays in processing applications for government services, and other disruptions
The longest government shutdown in U.S. history lasted 35 days from December 2018 to January 2019 due to a dispute over funding for a border wall
Shutdowns can have significant economic and social costs, as well as erode public trust in government
To avoid shutdowns, Congress may need to engage in more effective communication, compromise, and long-term budget planning
Lobbyists' Influence on Appropriations
Tactics and Influence
Lobbyists and interest groups seek to influence the appropriations process by advocating for increased or decreased funding for specific programs or agencies
Tactics used by lobbyists include meeting with members of Congress and their staff, testifying at committee hearings, and mobilizing grassroots support among constituents
Some interest groups, such as those representing defense contractors (Lockheed Martin) or agricultural producers (American Farm Bureau), have significant clout in the appropriations process due to their political influence and campaign contributions
Lobbyists may also try to insert specific language or provisions into appropriations bills that benefit their clients or industries
Concerns and Reforms
Critics argue that the influence of lobbyists and interest groups can lead to wasteful spending and skewed priorities in the budget process
Efforts to reduce the influence of special interests include banning , which are targeted spending provisions inserted by individual members of Congress (e.g., funding for a specific bridge or museum)
Increasing transparency around lobbying activities, such as requiring more detailed disclosure of contacts with government officials, can help the public hold lobbyists and lawmakers accountable
Reforming campaign finance laws to limit the role of money in politics could also reduce the influence of special interests on the appropriations process
Ultimately, balancing the needs and interests of various constituencies while ensuring fiscal responsibility is an ongoing challenge for appropriators and the Congress as a whole