Appendix I
Overview of the Development and
Execution of the Federal Budget
Page 110 GAO-05-734SP Budget Glossary
The differences between the two houses are typically resolved in a conference
committee and the resulting legislation is passed by both houses and must be signed
by the President to become law.
Appropriations and Other Fiscal Legislation
Generally, throughout this period, Congress considers revenue legislation and
legislation affecting spending, including the regular appropriations acts.
10
All
legislation considered by Congress that affects revenue or spending must comply
with the committee allocations and the total levels of revenues and spending in the
concurrent resolution on the budget.
11
Appropriations bills are developed by the House and Senate Appropriations
Committees and their subcommittees.
Each subcommittee has jurisdiction over
specific federal agencies or programs and is responsible for one of the general
appropriations bills.
12
The Constitution requires that all revenue (tax) bills originate
in the House; by custom, the House also originates appropriations measures.
The Congressional Budget Act requires that the House and Senate Appropriations
Committees subdivide the amounts allocated to them under the budget resolution
10
Less than 40 percent of total budget authority is appropriated through the annual appropriations process.
The remainder of the budgetary resources spent by the federal government are provided by law other than
annual appropriations acts. (For further explanation, see the definitions of Backdoor Authority, Budget
Authority, Direct Spending, Obligational Authority, and Outlay.)
11
The rules of the House of Representatives also prohibit consideration of appropriations bills for
expenditures not previously authorized by law. See Rule XXI, Rules of the House of Representatives. A
similar, but more limited provision exists in Rule XVI, Standing Rules of the Senate. (See Point of Order.)
(Some agency programs or functions are reauthorized every year, while others are authorized for several
years or permanently.) The effect of such rules is that an appropriation bill is subject to a point of order if it
is not preceded by an authorization of appropriation.
12
As of March 2005, the House of Representatives has 10 appropriation subcommittees: Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies; Defense; Energy and Water
Development, and Related Agencies; Foreign Operations, Export Financing and Related Programs;
Homeland Security; Interior, Environment, and Related Agencies; Labor, Health and Human Services,
Education, and Related Agencies; Military Quality of Life and Veterans Affairs and Related Agencies;
Science, the Departments of State, Justice, and Commerce, and Related Agencies; and Transportation,
Treasury, and Housing and Urban Development, the Judiciary, and the District of Columbia. The Senate has
12 appropriation subcommittees: Agriculture, Rural Development, and Related Agencies; Commerce,
Justice, and Science; Defense; District of Columbia; Energy and Water; Homeland Security; Interior and
Related Agencies; Labor, Health and Human Services, Education and Related Agencies; Legislative Branch;
Military Construction and Veterans Affairs; State, Foreign Operations, and Related Programs; and
Transportation, Treasury, the Judiciary, Housing and Urban Development, and Related Agencies.