February
The President Submits a Budget Proposal
By law, the President must send a detailed budget proposal to Congress by the first Monday in February.
Legislative Branch
The Congressional Budget Process
How Congress funds the federal government, from the President's February proposal to the October 1 deadline, and what happens when the process breaks down.
12
Appropriations Bills
Congress must pass all 12
Oct 1
Fiscal Year Start
Ends September 30
4
Times Done On Time
Since FY1977 (out of 48)
Apr 15
Budget Resolution Deadline
Rarely met
Before We Start: Two Very Different Kinds of Spending
Understanding this distinction is essential to understanding why the budget process works the way it does.
Discretionary Spending
~30%Congress votes on this every year through the appropriations process. It covers most of what people picture when they think of government: defense, education, scientific research, transportation, national parks, federal agencies.
This is what the budget process on this page is about.
Mandatory Spending
~70%This runs on autopilot under existing law, Congress doesn't vote on it annually. Anyone who qualifies legally receives the benefit. Covers Social Security, Medicare, Medicaid, and interest on the national debt.
Changing mandatory spending requires changing the underlying law, not the annual appropriations process.
The Budget Process, Step by Step
Select any step to read the full explanation.
March – April
Budget Committees Draft a Budget Resolution
The House and Senate Budget Committees hold hearings and draft a concurrent budget resolution, Congress's own framework for the year.
Spring – Summer
Appropriations Subcommittees Divide Up the Money
Congress splits the federal budget into 12 categories. Each is handled by a dedicated subcommittee that writes its own spending bill.
Summer
Full Chamber Votes in the House and Senate
Each of the 12 bills must pass both the House and Senate, often with significant differences between the two versions.
Late Summer – Fall
Conference Committees Resolve Differences
When the House and Senate pass different versions of a bill, a conference committee of members from both chambers works out a final compromise.
September 30 Deadline
Presidential Signature, or the Clock Runs Out
All 12 bills must be signed by the President before October 1 for the budget process to be considered complete.
October 1
The New Fiscal Year Begins
The federal government's fiscal year runs October 1 through September 30, not the calendar year.
When the Process Breaks Down
These four situations dominate budget news. Here's what they actually mean.
Continuing Resolutions
Keeping the lights on while negotiations continue
A Continuing Resolution (CR) is a temporary funding measure that keeps the government running at roughly the previous year's spending levels when new appropriations bills haven't been passed.
Omnibus Bills
Thousands of pages, one vote, one deadline
An omnibus bill bundles several, or all 12, appropriations bills into one massive package, typically passed at the end of a budget standoff.
Government Shutdowns
What actually happens when funding runs out
A government shutdown occurs when a funding gap opens, appropriations expire and no new funding (appropriation or CR) is in place. The Antideficiency Act prohibits federal agencies from spending money that hasn't been appropriated.
The Debt Ceiling
Paying bills that Congress already approved
The debt ceiling (officially the debt limit) is a law that sets the maximum total amount the federal government is legally allowed to borrow. It is frequently confused with the budget itself, they are separate issues.