Isabella Carter
The U.S. Constitution gives Congress the power to create a federal budget, which is then approved by the President. The Constitution does not require annual appropriations, but since the First Congress, the practice has been to make appropriations for a single fiscal year. The Constitution also does not require the President to make recommendations concerning the revenues and spending of the federal government. However, the President proposes annual budget guidelines, which are considered and amended by House and Senate committees. Congress is supposed to adopt a budget resolution to guide its budgetary action for the year, and the annual federal budget process usually starts when the President submits a detailed budget request.
| Characteristics | Values |
|---|---|
| Who is responsible for the budget? | The budget is the responsibility of both Congress and the President. |
| Who proposes the budget? | The President proposes the annual budget. |
| Who approves the budget? | The budget is approved by the President after it has been considered and amended by the House and Senate committees. |
| What is the purpose of the budget? | The federal budget is used to support the economy and people of the United States. |
| What is included in the budget? | The budget includes mandatory and discretionary spending. |
| What is mandatory spending? | Mandatory spending includes funding for programs such as Medicare and SNAP. |
| What is discretionary spending? | Discretionary spending is money approved by Congress and the President during the appropriations process each year. |
| What is the role of Congress? | Congress has the power to create a federal budget and determine how much money the government can spend. |
| What is the role of the President? | The President proposes the budget and has the power to request annual appropriations. |
| Is there a constitutional requirement for a balanced budget? | There is no requirement for a balanced budget in the US Constitution, but there have been proposals to amend this. |
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What You'll Learn
The Constitution does not require annual appropriations
The U.S. Constitution does not require annual appropriations. However, since the First Congress, the practice has been to make appropriations for a single fiscal year. The Constitution does not provide for a budget, nor does it require the President to make recommendations concerning the revenues and spending of the federal government.
The Constitution gives Congress the power to create a federal budget, determining how much money the government can spend over the upcoming fiscal year. Congress's budget is then approved by the President. Congress decides on the amount and type of discretionary spending and provides resources for mandatory spending. The President proposes annual budget guidelines, which are considered and amended by House and Senate committees. The President's budget is a request, and Congress is not required to adopt these recommendations. Nevertheless, the President's proposals often influence congressional revenue and spending decisions.
The Constitution makes clear that Congress holds the "power of the purse", giving it the authority "to lay and collect Taxes, Duties, Imposts and Excises" and specifying that "No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by law." In other words, federal taxing and spending require legislation that is enacted into law.
The Budget and Accounting Act of 1921 established the executive budget process and required the President to submit a proposed annual budget to Congress. This added to the executive branch's powers. However, this Act did not directly alter the procedures by which Congress makes revenue and spending decisions.
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The Constitution gives Congress the power to create a federal budget
The US Constitution gives Congress the power to create a federal budget. This is known as "the power of the purse". The Constitution makes it clear that Congress has the authority "to lay and collect Taxes, Duties, Imposts and Excises" and that "No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by law". In other words, federal taxing and spending require legislation that is enacted into law.
The annual federal budget process typically begins when the President submits a detailed budget request for the coming fiscal year, which starts on October 1. The proposed budget from the president is then considered and amended by House and Senate committees. The House and Senate then vote to approve the final budget, after which the President signs the individual bills or the one bill that includes the entire budget.
The Constitution that resulted from the Constitutional Convention in Philadelphia in 1787 contained broad provisions that established that all of Congress would ultimately play a part in the federal budget, including spending and taxes. Article 1, Section 9, Clause 7 contains two clauses: The Appropriations Clause and the Statement and Accounts Clause.
In 1921, the Budget and Accounting Act moved many of the preliminary budget-setting functions to the President and the executive branch. This added to the considerable power allocated to the executive branch. In 1974, Congress passed the Congressional Budget and Impoundment Control Act to confront these growing presidential budgetary powers.
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The President proposes annual budget guidelines
The US Constitution does not explicitly require the adoption of an annual budget. However, the Congressional Budget Act of 1974 establishes an internal process for Congress to formulate and enforce an overall plan each year for acting on budget legislation. The Constitution tasks Congress, and more specifically, the House of Representatives, with "the power of the purse." This power is derived from the Constitution's grant of authority to Congress "to lay and collect Taxes, Duties, Imposts and Excises" and the specification that "No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by law."
Once the President submits the budget request, it is considered and amended by House and Senate committees. Congress holds hearings to question administration officials about their requests and may develop its own budget plan, called a "budget resolution." The budget resolution sets targets for congressional committees to propose legislation directly appropriating funds or changing spending and tax laws. It can also establish an expedited process for mandatory spending and tax changes through "reconciliation."
Congress is supposed to pass the budget resolution by April 15, with the fiscal year starting on October 1. However, Congress often misses this deadline, and in recent years, it has rarely followed the orderly process outlined in the Congressional Budget Act. If Congress does not complete action on appropriations bills by the start of the fiscal year, it must approve, and the President must sign, a continuing resolution (CR) to provide stopgap funding for affected agencies and programs. Deadlocks over the budget can lead to a government shutdown if continuing resolutions are not passed by the deadline.
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Congress holds the 'power of the purse'
The Constitution of the United States grants Congress the "power of the purse", which is the authority to make spending and tax decisions. This power is derived from Article I, Section 9, Clause 7 (the Appropriations Clause) and Article I, Section 8, Clause 1 (the Taxing and Spending Clause) of the Constitution. The "power of the purse" allows Congress to control government spending and taxation, and it serves as a check on the executive branch.
The "power of the purse" has been a critical tool for Congress to limit executive power and shape policy. For example, Congress's decision to eliminate military funding for South Vietnam in 1974 effectively ended the Vietnam War. Similarly, Congress's limitations on military funding during the Reagan administration led to the withdrawal of US Marines from Lebanon. The "power of the purse" has also been used to influence policy in other areas, such as the government's response to the 2008 financial crisis, President Trump's border wall funding, and President Biden's student debt relief plan.
While Congress holds the "power of the purse", the budget process involves collaboration between Congress and the President. The President proposes annual budget guidelines, which are then considered and amended by House and Senate committees. A group of House and Senate members then works to reconcile differences between the appropriations bills. If the House and Senate approve the final budget, the President signs the individual bills or the single bill encompassing the entire budget.
However, the budget process has been subject to delays and deadlocks. In recent years, Congress has rarely followed the orderly process outlined in the Congressional Budget Act. Additionally, there have been instances where Congress's "power of the purse" has been subverted, such as during the Iran-Contra scandal in the 1980s when the Reagan administration sought alternative funding sources to circumvent Congress's denial of aid.
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The President's budget is a request, not a requirement
The US Constitution does not explicitly require the adoption of an annual budget. Instead, it tasks Congress, and more specifically, the House of Representatives with "the power of the purse". The Constitution grants Congress the authority "to lay and collect Taxes, Duties, Imposts and Excises" and specifies that "No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by law".
While the Constitution does not mandate an annual budget, the annual federal budget process typically begins when the President submits a detailed budget request for the upcoming fiscal year, commencing on October 1. This request is considered a proposal and is subject to amendment by House and Senate committees. The President's role in the budget process was established by the Budget and Accounting Act of 1921, which mandated the President to submit a proposed annual budget to Congress.
The President's budget request serves as a starting point for negotiations and is not binding. Congress holds the ultimate authority to make spending and tax decisions through various legislative actions. The House and Senate Budget Committees draft and enforce the congressional budget resolution, which is then voted on by both chambers. This resolution is a “concurrent” resolution, meaning it does not require the President's signature or veto.
It is important to note that the President does possess some degree of influence over the budget process. They can propose annual budget guidelines and make changes to the functional categories in the budget in consultation with the Committees on Appropriations and the Budget of both Houses of Congress. Additionally, the President has the authority to prescribe the contents and order of statements in the budget, including expenditures, estimated expenditures, and proposed appropriations.
In summary, while the President's budget request initiates the annual federal budget process, it is ultimately a request rather than a requirement. The President's proposal is subject to amendment and negotiation by Congress, which holds the constitutional power to make final spending and tax decisions.
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Frequently asked questions
No, the US Constitution does not require the adoption of an annual budget. The Constitution gives Congress the power to create a federal budget, which is then approved by the President. However, there is no constitutional requirement for a budget to be adopted annually.
Congress has the power of the purse, meaning it decides on the amount and type of discretionary spending and provides resources for mandatory spending. It passes appropriations bills that authorize federal agencies to incur obligations and the Treasury Department to make payments. Congress also has the authority to lay and collect taxes.
The President proposes annual budget guidelines and submits a detailed budget request for the coming fiscal year. The President's budget is a request, and Congress is not required to adopt these recommendations. However, the President's proposals often influence congressional revenue and spending decisions.
No, there is no balanced budget provision in the US Constitution. While there have been proposals to amend the Constitution to include a balanced budget requirement, economists generally agree that strict annual balanced budget amendments would have harmful economic effects.
