The federal budget determines how the government collects and spends trillions of dollars each year. Understanding this process helps you follow policy debates, hold your officials accountable, and see where your tax dollars go.
The federal fiscal year runs from October 1 to September 30. The annual budget process generally follows these steps:
President's Budget Request
The President submits a budget proposal to Congress, typically in early February. This is a request — Congress is not required to follow it.
Congressional Budget Resolution
The House and Senate Budget Committees draft a budget resolution that sets overall spending levels. This resolution is not signed by the President and doesn't have the force of law — it's an internal framework for Congress.
Appropriations Bills
The House and Senate Appropriations Committees write 12 annual spending bills that fund specific areas of government. These must pass both chambers and be signed by the President before the fiscal year begins.
Continuing Resolutions & Shutdowns
If Congress doesn't pass all 12 bills on time, it may pass a continuing resolution (CR) to keep the government funded at current levels temporarily. If no funding is enacted, affected agencies shut down.
Programs authorized by permanent law that continue without annual congressional action. The largest mandatory programs include Social Security, Medicare, and Medicaid. Mandatory spending accounts for the majority of the federal budget. Changing these programs requires passing new legislation — they are not part of the annual appropriations process.
Funding that Congress must approve each year through the 12 appropriations bills. This includes defense, education, transportation, scientific research, foreign aid, and the day-to-day operations of federal agencies. Discretionary spending is where most annual budget debates focus.
The federal government pays interest on the national debt. This is a legally obligated payment that has grown as the debt has increased. Interest payments are separate from both mandatory programs and discretionary spending.
Tell your officials what you think the budget should fund.
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