Congressional budget resolution

Congressional budget resolution
Name	Congressional Budget Resolution
Legislature	United States Congress
Jurisdiction	Federal government of the United States
Related legislation	Congressional Budget and Impoundment Control Act of 1974
Admin agency	Congressional Budget Office

Congressional budget resolution. A concurrent resolution passed by both chambers of the United States Congress that establishes a budgetary framework for the upcoming fiscal year. It sets aggregate spending, revenue, and deficit levels but does not become law or require the President's signature. The resolution provides the blueprint for subsequent appropriations and tax legislation, guiding the work of committees like the House Committee on Appropriations and the Senate Committee on Finance.

Overview

The modern process was established by the Congressional Budget and Impoundment Control Act of 1974, which created the Congressional Budget Office and the House Committee on the Budget. This legislative framework was a response to perceived executive overreach during the administration of Richard Nixon. Unlike a joint resolution, it does not carry the force of law but serves as an internal congressional plan, coordinating the efforts of authorizing, appropriations, and tax-writing committees. Its passage is a central task for the United States House of Representatives and the United States Senate each year, outlining priorities for discretionary spending and mandatory spending.

Process and timeline

The process begins with the submission of the President's budget request, typically in early February, which is analyzed by the Congressional Budget Office. Each chamber's Budget committee then drafts and reports its own version of the resolution. Following debate and passage in the House of Representatives and the Senate, a conference committee reconciles differences between the two versions. The Budget Act sets April 15 as the target date for final adoption, though this deadline is frequently missed. The entire sequence is governed by rules established in the Congressional Budget Act of 1974.

Content and components

The resolution contains aggregate totals for budget authority, outlays, revenues, and the surplus or deficit. It allocates spending among functional categories, such as national defense or transportation, to the relevant committees. It may include instructions to authorizing committees regarding changes in mandatory spending programs. The document also outlines levels for public debt and may establish reserve funds for specific priorities. These components guide the subsequent work of the Appropriations Committee and the Ways and Means Committee.

Role in the federal budget process

The resolution is the central congressional response to the executive budget formulated by the Office of Management and Budget. It establishes enforceable limits for the annual appropriations process managed by the House Appropriations Committee. For revenue legislation, it provides a framework for the Senate Finance Committee. By setting overall fiscal goals, it aims to impose discipline on the disparate spending and tax decisions made by various panels, influencing legislation affecting agencies like the Department of Defense and the Department of Health and Human Services.

Enforcement and reconciliation

Enforcement occurs primarily through points of order that can be raised on the floor of the House or Senate against legislation violating the resolution's totals. The most powerful enforcement tool is the reconciliation process, initiated by specific instructions in the resolution. This process allows certain committees to produce legislation that changes mandatory spending or revenue laws, which is then considered under expedited procedures. Notable reconciliation bills include the Economic Growth and Tax Relief Reconciliation Act of 2001 and the American Rescue Plan Act of 2021.

Historical development and changes

The process was fundamentally altered by the Gramm–Rudman–Hollings Act in the 1980s, which instituted deficit targets and sequestration. The Budget Enforcement Act of 1990 shifted focus to pay-as-you-go rules for new spending and revenue legislation. Partisan conflicts, such as the government shutdowns during the Clinton administration, have often stalled the adoption of a resolution. In recent years, Congress has frequently operated without a formal resolution, relying instead on direct agreements like the Bipartisan Budget Act of 2019 between congressional leaders and the White House.

Category:United States federal budget Category:United States Congress