11.2 Appropriations process

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 appropriations bills 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

• 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 federal budget
• Congress can adjust discretionary spending levels each year based on changing priorities and fiscal constraints

Mandatory Spending

• 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 government shutdown
• 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 earmarks, 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