Overview of the Authorization versus the Appropriations Process
Congress exercises its power of
the purse through the authorization and appropriation of federal
spending to carry out government activities. While the power over
appropriations is granted to Congress by the U.S. Constitution, the
authorization-appropriation process derives from House and Senate rules.
The formal process consists of two sequential steps: (1) enactment of an
authorization measure to create or to continue an agency or program as
well as to allow the subsequent enactment of appropriations; and (2)
enactment of appropriations to provide funds for the authorized agency
or program.
The authorizing and
appropriating duties in this two-step process are carried out by a
division of labor within the committee system. Legislative committees,
such as the House Committee on Armed Services and the Senate Committee
on Commerce, Science, and Transportation, are responsible for
authorizing legislation related to the agencies and programs under their
jurisdiction; most standing committees have authorizing
responsibilities. The Appropriations Committees of the House and Senate
have jurisdiction over appropriations measures. As discussed below,
House and Senate rules generally prohibit encroachment of these
committee responsibilities by the authorizers and
appropriators.
Agencies and programs funded
through the annual appropriations process (“discretionary
spending”) generally follow this two-step process. However, not
all federal agencies and programs are funded through the
authorization-appropriations process. For example, funding for some
agencies and programs is provided by the authorizing legislation and
thereby bypasses the usual two-step process. Such spending
(“direct spending”) currently constitutes approximately
two-thirds of all federal spending. Some direct spending—mostly
entitlement programs—is funded by permanent appropriations in the
authorizing law. Other direct spending (“appropriated
entitlements”), such as Medicaid, is funded in appropriations
acts, but the amount appropriated is controlled by the authorizing
legislation.
AUTHORIZING LEGISLATION
An authorizing measure can establish, continue, or modify an agency
or program for a fixed or indefinite period of time. It also may set
forth the duties and functions of an agency or program, its
organizational structure, and the responsibilities of agency or program
officials.
Authorizing legislation also allows the enactment of appropriations
for an agency or program. The amount authorized to be appropriated may
be specified for each fiscal year or may be indefinite (providing
“such sums as may be necessary”). The authorization of
appropriations is intended to provide guidance regarding the amount of
funds appropriate to carry out the authorized activities of an
agency.
<SEC. 406H. [ 20 U.S.C. 1070a-28] AUTHORIZATION OF APPROPRIATIONS
FOR GEAR UP. There are authorized to be appropriated to carry out this
chapter $200,000,000 for fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years.>
APPROPRIATIONS MEASURES
An appropriations measure provides budget authority to an agency for
specified purposes. Budget authority allows federal agencies to incur
obligations and authorizes payments to be made out of the Treasury. Each
year, appropriations acts fund discretionary agencies and programs and
appropriated entitlement programs.
Each of the 13 subcommittees of the Appropriations Committees of the
House and Senate is responsible for one of the regular appropriations
acts. The regular appropriations acts provide budget authority for the
next fiscal year, which begins October 1. Congress usually adopts one or
more supplemental appropriations acts to provide additional funding for
unexpected needs while the fiscal year is in progress. If the regular
appropriations acts are not completed by October 1, then Congress must
adopt a continuing appropriations act (a “continuing
resolution”) providing stop-gap funding. Congress may include
several appropriations in either an omnibus appropriations measure or a
continuing appropriations bill providing funding for the full fiscal
year, rather than adopt the regular appropriations measures
individually.
<GEAR UP—The bill includes $300,000,000 for the GEAR UP
program, $6,918,000 above last year’s level and $15,000,000 above
the budget request. GEAR UP provides grants to states and partnerships
of low-income middle and high schools, institutions of higher education,
and community organizations to target entire grades of students and give
them the skills and encouragement to successfully pursue postsecondary
education.>
ENFORCING THE AUTHORIZATION-APPROPRIATIONS PROCESS
The separation of the two steps of the authorization-appropriations
process is enforced through points of order provided by rules of the
House and Senate:
(1) The rules prohibit appropriations for unauthorized agencies and
programs; an appropriation in excess of an authorized amount is
considered unauthorized.
(2) The rules prohibit the inclusion of legislative language in
appropriations measures.
(3) The House (but not the Senate) prohibits appropriations in
authorizing legislation.
While the rules encourage the integrity of the process, a point of
order must be raised to enforce the rules. Further, the rules may be
waived by suspension of the rules by unanimous consent or, in the House,
by a special rule. If unauthorized appropriations are enacted into law
through circumvention of House and Senate rules, the agency (in most
cases) may spend the entire amount.
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