United States federal budget

United States federal budget
Name	United States federal budget
Caption	Fiscal composition and flows for the fiscal year
Jurisdiction	United States
Budget year	Fiscal year
Total	Total outlays and receipts

Contents

United States federal budget is the annual plan for United States government receipts and outlays for a fiscal year, prepared by the Office of Management and Budget and enacted by the United States Congress. It allocates resources among federal agencies such as the Department of Defense, Department of Health and Human Services, and Department of Education, and sets funding priorities guided by laws like the Budget Control Act of 2011 and debated in venues including the United States Senate and United States House of Representatives. The budget interacts with macroeconomic factors involving the Federal Reserve System, the Bureau of Economic Analysis, and international actors such as the International Monetary Fund.

Overview

The federal budget encompasses projected receipts from sources like the Internal Revenue Service and outlays for programs administered by agencies such as the Social Security Administration, Centers for Medicare & Medicaid Services, and the Department of Veterans Affairs. Key documents include the President's Budget submitted by the President of the United States, analytical reports from the Congressional Budget Office, and audit work by the Government Accountability Office. Fiscal metrics tracked include gross domestic product estimates from the Bureau of Economic Analysis, budget deficits reported to the Department of the Treasury, and credit ratings assessed by firms such as Standard & Poor's and Moody's Investors Service.

The process begins with agency budget requests coordinated by the Office of Management and Budget and culminates in appropriations and authorizations by the United States Congress and signature by the President of the United States. Key milestones include the President's Budget rollout in early spring, review by the House Budget Committee and Senate Budget Committee, and reconciliation bills under rules set in the Congressional Budget Act of 1974. When regular appropriations fail, lawmakers may pass continuing resolutions or face potential United States federal government shutdowns, with oversight hearings held by committees including the House Appropriations Committee and the Senate Appropriations Committee.

Federal revenues derive primarily from individual income taxes administered by the Internal Revenue Service, payroll taxes funding Social Security and Medicare (United States), corporate taxes enforced under the Internal Revenue Code, and tariffs collected by the United States Customs and Border Protection. Major expenditure categories include defense spending administered by the Department of Defense, health programs through the Centers for Medicare & Medicaid Services, and income security programs such as those overseen by the Social Security Administration and the Department of Labor. Economic cycles monitored by the Federal Reserve System and tax reform episodes like the Tax Cuts and Jobs Act of 2017 influence revenue flows and spending pressures.

Mandatory spending—driven by statutory entitlements—covers programs such as Social Security, Medicare (United States), and the Supplemental Nutrition Assistance Program, administered respectively by the Social Security Administration, Centers for Medicare & Medicaid Services, and the United States Department of Agriculture. Discretionary programs, funded through annual appropriations, include defense under the Department of Defense, education initiatives via the Department of Education, and research financed by agencies like the National Institutes of Health and the National Science Foundation. Entitlement reforms debated in venues such as the United States Senate Finance Committee and policy analyses by the Brookings Institution and the Heritage Foundation shape long-term projections by the Congressional Budget Office.

When outlays exceed receipts, the federal government records a budget deficit financed by issuing Treasury securities through the United States Department of the Treasury and sold in markets involving institutions like the Federal Reserve Bank of New York and global investors including the People's Bank of China. The cumulative shortfalls contribute to the United States public debt reported to credit agencies such as Fitch Ratings. Fiscal policy decisions—tax changes, spending programs, and stimulus measures—are coordinated among the Treasury Department, the Office of Management and Budget, and the Federal Reserve System, and debated during crises exemplified by responses to the 2008 financial crisis and the COVID-19 pandemic.

Budget enforcement mechanisms include statutory caps, pay-as-you-go rules under the Statutory Pay-As-You-Go Act of 2010, and sequestration triggers established by the Budget Control Act of 2011. Annual appropriations are crafted by the House Appropriations Committee and Senate Appropriations Committee across subcommittees for defense, agriculture, energy, and other sectors, producing 12 regular appropriations bills or temporary continuing resolutions. Oversight involves auditing and investigative roles performed by the Government Accountability Office, inspectors general within agencies like the Department of Defense Office of Inspector General, and enforcement actions adjudicated by the United States Court of Federal Claims and congressional oversight panels.