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Congressional Rules and Practices Concerning User Fees and Other Nonrevenue Collections in the Federal Budget

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Congressional Rules and Practices Concerning
October 25, 2022
User Fees and Other Nonrevenue Collections
James V. Saturno
in the Federal Budget
Specialist on Congress and
the Legislative Process

Congressional Rules and Practices Concerning User Fees and Other Nonrevenue Collections in the Federal Budget

Updated October 1, 2024 (R47292) Jump to Main Text of Report

Summary

The collection of funds to finance the operations of the federal government is a fundamental part The collection of funds to finance the operations of the federal government is a fundamental part

of federal budgeting and the policymaking process. Although the power to of federal budgeting and the policymaking process. Although the power to “"lay and collect taxes, lay and collect taxes,
duties, imposts, and excisesduties, imposts, and excises”" is one of the enumerated powers of Congress under the is one of the enumerated powers of Congress under the

Constitution, not all of the receipts of the federal government actually result from this authority. Constitution, not all of the receipts of the federal government actually result from this authority.
Federal receipts may also result from various voluntary or business transactions of individuals with the government. Receipts Federal receipts may also result from various voluntary or business transactions of individuals with the government. Receipts
collected as a consequence of the taxing power, including tariffs, are considered revenues in a constitutional sense and are collected as a consequence of the taxing power, including tariffs, are considered revenues in a constitutional sense and are
subject to a number of specific rules and requirements. Receipts from voluntary or business transactions can be distinguished subject to a number of specific rules and requirements. Receipts from voluntary or business transactions can be distinguished
from revenues in a constitutional sense. As a consequence, they are not subject to those rules and requirements that apply to from revenues in a constitutional sense. As a consequence, they are not subject to those rules and requirements that apply to
revenues but are subject to other rules and requirements.revenues but are subject to other rules and requirements.
Nonrevenue collections include many user, regulatory, and other fees, charges, and assessments levied on a class of payors Nonrevenue collections include many user, regulatory, and other fees, charges, and assessments levied on a class of payors
that directly avail themselves of, or are directly subject to, a governmental service, program, or activity. Nonrevenue that directly avail themselves of, or are directly subject to, a governmental service, program, or activity. Nonrevenue
collections also include rents and royalties paid to the federal government and proceeds from the sale of federal assets, collections also include rents and royalties paid to the federal government and proceeds from the sale of federal assets,
because the purchase is voluntary and the payors receive something of commensurate value for their payments. Civil and because the purchase is voluntary and the payors receive something of commensurate value for their payments. Civil and
criminal penalties are similarly not generally regarded as revenue in the constitutional sense under the general premise that criminal penalties are similarly not generally regarded as revenue in the constitutional sense under the general premise that
malfeasance is voluntary and therefore does not involve a tax on involuntary behavior.malfeasance is voluntary and therefore does not involve a tax on involuntary behavior.
Although jurisdiction over revenue measures, including taxes and tariffs, is granted to the House Ways and Means and Senate Although jurisdiction over revenue measures, including taxes and tariffs, is granted to the House Ways and Means and Senate
Finance Committees, jurisdiction over nonrevenue collections is dispersed among a variety of committees. In addition, while Finance Committees, jurisdiction over nonrevenue collections is dispersed among a variety of committees. In addition, while
the Constitution grants the House the prerogative to originate revenue legislation, that prerogative does not apply to the Constitution grants the House the prerogative to originate revenue legislation, that prerogative does not apply to
nonrevenue collections, so the Senate may originate such legislation.nonrevenue collections, so the Senate may originate such legislation.
Nonrevenue collections are also distinguished from revenues in the way they are recorded in the federal budget process. Nonrevenue collections are also distinguished from revenues in the way they are recorded in the federal budget process.
Rather than being recorded as revenues, they are treated as negative amounts of budget authority and recorded as offsets to Rather than being recorded as revenues, they are treated as negative amounts of budget authority and recorded as offsets to
spending.spending.
The distinction between revenue and nonrevenue may be made at different stages in the lawmaking process for different The distinction between revenue and nonrevenue may be made at different stages in the lawmaking process for different
purposes: when a measure is referred to committee under Rule X in the House or Rule XXV in the Senate, when a measure is purposes: when a measure is referred to committee under Rule X in the House or Rule XXV in the Senate, when a measure is
considered by the House under Rule XXI, when Congress or the courts are asked to enforce the Origination Clause of the considered by the House under Rule XXI, when Congress or the courts are asked to enforce the Origination Clause of the
Constitution, or when it is recorded in the federal budget. This report provides an analysis of the guidelines used for making Constitution, or when it is recorded in the federal budget. This report provides an analysis of the guidelines used for making
this distinction and how they are applied in each circumstance.

Congressional Research Service

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Contents
Distinguishing Revenue and Nonrevenue Collections .................................................................... 1
Committee Jurisdiction and Referral ............................................................................................... 2
The Origination Clause ................................................................................................................... 3
Statutory Authority for Nonrevenue Collections ............................................................................. 4
Independent Offices Appropriation Act .................................................................................... 5
The Miscellaneous Receipts Act ............................................................................................... 5
Treatment of Nonrevenue Collections in the Federal Budget Process ............................................ 5
Offsetting Collections ............................................................................................................... 6
Offsetting Receipts .................................................................................................................... 6

Contacts
Author Information .......................................................................................................................... 6

Congressional Research Service

Congressional Rules and Practices Concerning Nonrevenue Collections

Distinguishing Revenue and Nonrevenue
Collections
this distinction and how they are applied in each circumstance.

Distinguishing Revenue and Nonrevenue Collections

The collection of funds to finance the operations of the federal government is a fundamental part The collection of funds to finance the operations of the federal government is a fundamental part
of federal budgeting and the policymaking process. The power to of federal budgeting and the policymaking process. The power to “"lay and collect taxes, duties, lay and collect taxes, duties,
imposts, and excisesimposts, and excises”" is one of the enumerated powers of Congress under the Constitution. is one of the enumerated powers of Congress under the Constitution.1
1 Although this power is broad, not all of the receipts of the federal government actually result Although this power is broad, not all of the receipts of the federal government actually result
from this authority. Federal receipts may also result from various voluntary or business from this authority. Federal receipts may also result from various voluntary or business
transactions of individuals with the government. The distinction between these types of receipts is transactions of individuals with the government. The distinction between these types of receipts is
applied at several points in the legislative process. Receipts collected as a consequence of the applied at several points in the legislative process. Receipts collected as a consequence of the
taxing power, including tariffs, are considered revenues in a constitutional sense and are subject taxing power, including tariffs, are considered revenues in a constitutional sense and are subject
to a number of specific rules and requirements.to a number of specific rules and requirements.22 Receipts from some type of voluntary or business Receipts from some type of voluntary or business
transaction, however, are not considered revenues in a constitutional sense. As a consequence, transaction, however, are not considered revenues in a constitutional sense. As a consequence,
they are not subject to the rules or requirements applied to revenues, although they may be they are not subject to the rules or requirements applied to revenues, although they may be
subject to other specific rules or requirements.subject to other specific rules or requirements.3 Nonrevenue receipts include Nonrevenue receipts include
user, regulatory and other fees, charges, and assessments levied on a class directly availing user, regulatory and other fees, charges, and assessments levied on a class directly availing
itself of, or directly subject to, a governmental service, program, or activity, but not on the itself of, or directly subject to, a governmental service, program, or activity, but not on the
general public, as measures to be utilized solely to support, subject to general public, as measures to be utilized solely to support, subject to annual annual
appropriations,appropriations, the the service,service, program, or activity … for which such fees, charges, and
assessments are established and collected and not to finance the costs of program, or activity … for which such fees, charges, and assessments are established and collected and not to finance the costs of Government Government
generally. The fee must be paid by a class benefitting from the service, program or activity, generally. The fee must be paid by a class benefitting from the service, program or activity,
or being regulated by the agency; in short, there must be a reasonable connection between or being regulated by the agency; in short, there must be a reasonable connection between
the payors and the agency or function receiving the fee.the payors and the agency or function receiving the fee.3
4 Similarly, rents and royalties paid to the federal government and proceeds from the sale of federal Similarly, rents and royalties paid to the federal government and proceeds from the sale of federal
assets constitute nonrevenue collections, because the purchase is voluntary and the payors receive assets constitute nonrevenue collections, because the purchase is voluntary and the payors receive
something of commensurate value for their payments. In this context, civil and criminal penalties something of commensurate value for their payments. In this context, civil and criminal penalties
are not generally regarded as revenue in the constitutional sense under the general premise that are not generally regarded as revenue in the constitutional sense under the general premise that
malfeasance is voluntary and therefore does not involve a tax on involuntary behavior.malfeasance is voluntary and therefore does not involve a tax on involuntary behavior.4
5 The House may also view certain legislative language as constituting revenue even if it is framed The House may also view certain legislative language as constituting revenue even if it is framed
as a nonrevenue collection—for example, when the amount of funds to be collected would (or as a nonrevenue collection—for example, when the amount of funds to be collected would (or
could) exceed the governmentcould) exceed the government’'s costs for providing a specific service or the connection between s costs for providing a specific service or the connection between
the payor and the beneficiary is attenuated. In such cases, these collections may be regarded as the payor and the beneficiary is attenuated. In such cases, these collections may be regarded as
designed, in part, to finance the cost of government operations generally, because the payor designed, in part, to finance the cost of government operations generally, because the payor
would not derive any particular benefit associated with the payment.would not derive any particular benefit associated with the payment.
Although the distinction between revenues and nonrevenue collections is applied in both the Although the distinction between revenues and nonrevenue collections is applied in both the
House and Senate, it is particularly salient in the House, where it is made explicit at the beginning House and Senate, it is particularly salient in the House, where it is made explicit at the beginning
of each Congress when the Speaker of the House enunciates certain policies with respect to

1 Article 1, Section 8. For a discussion of federal taxing power, see CRS Report R46551, The Federal Taxing Power: A
Primer, by Milan N. Ball.
2 See CRS Report R41408, Rules and Practices Governing Consideration of Revenue Legislation in the House and
Senate, by Megan S. Lynch.
3 “Policies of the Chair,” Congressional Record, vol. 137 (January 3, 1991), p. 66.
4 This is in contrast to an interpretation recommended in the Report of the President’s Commission on Budget
Concepts, and frequently applied in other contexts, that categorizes any receipts that are “‘governmental’ in character”
as revenues, including regulatory fees and fines. See Report of the President’s Commission on Budget Concepts
(Washington: GPO, 1967), p. 65.
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of each Congress when the Speaker of the House enunciates certain policies with respect to several aspects of the legislative process.several aspects of the legislative process.56 Among these policies is guidance concerning the Among these policies is guidance concerning the
application of House rules, precedents, and practices with respect to two separate but related application of House rules, precedents, and practices with respect to two separate but related
procedures. First, this concept is applied in connection with defining committee jurisdictions with procedures. First, this concept is applied in connection with defining committee jurisdictions with
respect to governmental receipts and assisting committees in staying within their appropriate respect to governmental receipts and assisting committees in staying within their appropriate
jurisdictions. Second, the meaning of what receipts are considered revenues in a constitutional jurisdictions. Second, the meaning of what receipts are considered revenues in a constitutional
sense is fundamental for understanding enforcement of the Housesense is fundamental for understanding enforcement of the House’'s constitutional prerogative to s constitutional prerogative to
originate revenue legislation, particularly when determining when the House may take action to originate revenue legislation, particularly when determining when the House may take action to
enforce that prerogative.enforce that prerogative.6
7 Committee Jurisdiction and Referral
Jurisdiction over revenue measures, including taxes and tariffs, is granted to the House Ways and Jurisdiction over revenue measures, including taxes and tariffs, is granted to the House Ways and
Means and Senate Finance Committees, while jurisdiction over nonrevenue collections is Means and Senate Finance Committees, while jurisdiction over nonrevenue collections is
dispersed among a variety of committees.dispersed among a variety of committees.78 Unlike jurisdiction over measures concerning Unlike jurisdiction over measures concerning
revenues, jurisdiction over measures concerning nonrevenue collections is not specifically revenues, jurisdiction over measures concerning nonrevenue collections is not specifically
identified in House and Senate rules. Instead, such collections are treated as an aspect of identified in House and Senate rules. Instead, such collections are treated as an aspect of
committee jurisdiction over some underlying legislative issue or subject area. For example, committee jurisdiction over some underlying legislative issue or subject area. For example,
jurisdiction over agricultural inspection fees is exercised by the House and Senate Committees on jurisdiction over agricultural inspection fees is exercised by the House and Senate Committees on
Agriculture as an aspect of their jurisdiction over agriculture and agricultural inspections Agriculture as an aspect of their jurisdiction over agriculture and agricultural inspections
generally.generally.
In the House, after a measure is introduced, the Speaker, acting on the advice of the Office of the In the House, after a measure is introduced, the Speaker, acting on the advice of the Office of the
Parliamentarian, refers legislation to the appropriate committee(s) based on how its contents align Parliamentarian, refers legislation to the appropriate committee(s) based on how its contents align
with the subject matter jurisdiction of committees established in clause 1 of House Rule X. In with the subject matter jurisdiction of committees established in clause 1 of House Rule X. In
addition, when a measure includes provisions under the jurisdiction of multiple committees, addition, when a measure includes provisions under the jurisdiction of multiple committees,
House rules charge the Speaker with referring legislationHouse rules charge the Speaker with referring legislation
in such a manner as to ensure to the maximum extent feasible that each committee that has in such a manner as to ensure to the maximum extent feasible that each committee that has
jurisdiction under clause 1 of rule X overjurisdiction under clause 1 of rule X over the subjectthe subject matter of amatter of a provision thereof may provision thereof may
consider such provision and report to the House thereon.consider such provision and report to the House thereon.8
9 As a matter of practice, then, the jurisdictions of committees over particular subjects As a matter of practice, then, the jurisdictions of committees over particular subjects isare generally generally
protected by the referral process. This is supplemented in the case of revenue legislation by protected by the referral process. This is supplemented in the case of revenue legislation by
House Rule XXI, clause 5(a)(1) (stated below), which specifically provides that a point of order House Rule XXI, clause 5(a)(1) (stated below), which specifically provides that a point of order
may be raised against the consideration of a measure or amendment that includes a revenue may be raised against the consideration of a measure or amendment that includes a revenue
provision if it were reported from a committee other than the Ways and Means Committee:provision if it were reported from a committee other than the Ways and Means Committee:9
A bill or joint resolution carrying a tax or tariff measure may not be reported by a
10 A bill or joint resolution carrying a tax or tariff measure may not be reported by a committee not having jurisdiction to report tax or tariff measures, and an amendment in committee not having jurisdiction to report tax or tariff measures, and an amendment in
the House or proposed by the Senate carrying a tax or tariff measure shall not be in order

5 “Announcement by the Speaker Pro Tempore,” Congressional Record, daily edition (January 4, 2021), p. H38. In this
announcement, a reference is made to a full statement of the policy announced at the beginning of the 102nd Congress
with respect to jurisdictional concepts related to clause 5(a) of Rule XXI, Congressional Record, vol. 137 (January 3,
1991), p. 66.
6 For a discussion of how the concept of revenues is interpreted for enforcing House prerogatives under Article I,
Section 7, clause 1, of the U.S. Constitution (known as the Origination Clause), see CRS Report R46558, The
Origination Clause of the U.S. Constitution: Interpretation and Enforcement, by James V. Saturno.
7 The jurisdiction of the House Ways and Means Committee and the Senate Finance Committee are specified in House
Rule X, clause 1(t), and Senate Rule XXV, paragraph 1(i), respectively.
8 House Rule XII, clause 2.
9 For more information on points of order and the enforcement of House rules, see CRS Report 98-307, Points of
Order, Rulings, and Appeals in the House of Representatives, by Valerie Heitshusen.
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during the consideration of a bill or joint resolution reported by a committee not having
that jurisdiction. A point of order against a tax or tariff measure in such a bill, joint
resolution, or amendment thereto may be raised at any time during pendency of that
measure for amendment.
the House or proposed by the Senate carrying a tax or tariff measure shall not be in order during the consideration of a bill or joint resolution reported by a committee not having that jurisdiction. A point of order against a tax or tariff measure in such a bill, joint resolution, or amendment thereto may be raised at any time during pendency of that measure for amendment. Interpreting what constitutes revenues is essential for the application of House rules concerning Interpreting what constitutes revenues is essential for the application of House rules concerning
committee jurisdiction and the referral of legislation. The same interpretation necessarily informs committee jurisdiction and the referral of legislation. The same interpretation necessarily informs
the converse and clarifies what constitutes nonrevenue collections as well, because such the converse and clarifies what constitutes nonrevenue collections as well, because such
collections are not revenues. In this way, House rules distinguish between revenue legislation, collections are not revenues. In this way, House rules distinguish between revenue legislation,
which must be referred to the Ways and Means Committee, and nonrevenue legislation, which which must be referred to the Ways and Means Committee, and nonrevenue legislation, which
may be referred to the committee (or committees) having jurisdiction over the subject matter may be referred to the committee (or committees) having jurisdiction over the subject matter
upon which the fees or charges might be based.
upon which the fees or charges might be based.

House Rule XXI, clause 5(a)(1), also has an impact on the consideration of legislation and amendments that may be offered. The prohibition on revenue provisions in measures reported by a committee not having that jurisdiction or amendments containing revenue provisions, either in the House or proposed by the Senate, would apply to any language that would produce "a necessary, certain, and inevitable change in revenue collections or tax statuses or liabilities."11

Senate practices similarly distinguish between revenue and nonrevenue legislation. Legislation is Senate practices similarly distinguish between revenue and nonrevenue legislation. Legislation is
referred in the Senate by the presiding officer, on the advice of the Office of the Parliamentarian, referred in the Senate by the presiding officer, on the advice of the Office of the Parliamentarian,
based on the application of committee jurisdictions set forth in Senate Rule XXV. In addition, based on the application of committee jurisdictions set forth in Senate Rule XXV. In addition,
under Senate Rule XVII, a measure is referred to the committee with under Senate Rule XVII, a measure is referred to the committee with “"jurisdiction over the jurisdiction over the
subject matter which predominates in such proposed legislation.subject matter which predominates in such proposed legislation.”" In almost all cases, if a measure In almost all cases, if a measure
includes a revenue provision, such a provision would be considered the predominant subject. includes a revenue provision, such a provision would be considered the predominant subject.
Legislation with revenue provisions is thus referred to the Finance Committee, while legislation Legislation with revenue provisions is thus referred to the Finance Committee, while legislation
with nonrevenue receipts is referred to the committee having jurisdiction over the predominant with nonrevenue receipts is referred to the committee having jurisdiction over the predominant
subject matter in the measure.subject matter in the measure.
The Origination Clause
Article I, Section 7, clause 1, of the U.S. Constitution is known as the Origination Clause because Article I, Section 7, clause 1, of the U.S. Constitution is known as the Origination Clause because
it requires:it requires:
All bills for raising revenue shall originate in the House of Representatives; but the Senate All bills for raising revenue shall originate in the House of Representatives; but the Senate
may propose or concur with amendments as on other bills.may propose or concur with amendments as on other bills.
As generally understood, this clause carries two kinds of prohibitions. First, the Senate may not As generally understood, this clause carries two kinds of prohibitions. First, the Senate may not
originate any measure that includes a provision for raising revenue, and second, the Senate may originate any measure that includes a provision for raising revenue, and second, the Senate may
not propose any amendment that would raise revenue to a House-passed nonrevenue measure. not propose any amendment that would raise revenue to a House-passed nonrevenue measure.
However, the Senate may generally amend a House-originated revenue measure as it sees fit.However, the Senate may generally amend a House-originated revenue measure as it sees fit.
The Constitution does not provide specific guidelines as to what constitutes a bill for raising The Constitution does not provide specific guidelines as to what constitutes a bill for raising
revenue, so the House relies on its own precedents to guide its interpretation. The House applies a revenue, so the House relies on its own precedents to guide its interpretation. The House applies a
broad standard and construes its prerogatives expansively to include any broad standard and construes its prerogatives expansively to include any “"meaningful revenue meaningful revenue
proposal.proposal.”" This standard is based on a provision-by-provision review of whether a measure may This standard is based on a provision-by-provision review of whether a measure may
be considered to have the potential to affect revenue and not simply whether it would make be considered to have the potential to affect revenue and not simply whether it would make
changes in the tax code directly. The precedents and practices of the House that distinguish changes in the tax code directly. The precedents and practices of the House that distinguish
between revenue and nonrevenue collections inform the types of language the House considers to between revenue and nonrevenue collections inform the types of language the House considers to
be subject to its prerogative to originate bills for raising revenue. This includes not only be subject to its prerogative to originate bills for raising revenue. This includes not only
legislation to make changes in the tax code directly but also legislation framed as fees that would legislation to make changes in the tax code directly but also legislation framed as fees that would
(or could) be used to pay for government operations generally rather than as payment for (or could) be used to pay for government operations generally rather than as payment for
something of specific value to the payor, as well as any potential change in tariffs, including any something of specific value to the payor, as well as any potential change in tariffs, including any
trade sanctions that could impose import restrictions.trade sanctions that could impose import restrictions.
As a constitutional requirement, rather than a House rule, the House may not choose to waive its As a constitutional requirement, rather than a House rule, the House may not choose to waive its
application, and so whether a Senate measure or amendment will or will not be disallowed may application, and so whether a Senate measure or amendment will or will not be disallowed may
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present a significant issue between the chambers.present a significant issue between the chambers.1012 Although the House may enforce its Although the House may enforce its
prerogative through any of several methods, the most common is through the adoption of a prerogative through any of several methods, the most common is through the adoption of a
privileged resolution returning the measure to the Senate. Because this resolution has historically privileged resolution returning the measure to the Senate. Because this resolution has historically
been printed on blue paper, this is known as blue-slipping.been printed on blue paper, this is known as blue-slipping.11
13 The House prerogative to originate revenue legislation, however, does not apply to nonrevenue The House prerogative to originate revenue legislation, however, does not apply to nonrevenue
collections. As a consequence, the Senate may originate such legislation.collections. As a consequence, the Senate may originate such legislation.
Statutory Authority for Nonrevenue Collections
Federal agencies that engage in transactions with the general public must have statutory authority Federal agencies that engage in transactions with the general public must have statutory authority
to charge a fee. In some cases, this authority may be specific to an agency and may allow it to to charge a fee. In some cases, this authority may be specific to an agency and may allow it to
retain such collections. In other cases, agencies may use general authority retain such collections. In other cases, agencies may use general authority originally provided under the provided under the
Independent Offices Appropriations Act, FY1952 (IOAA).Independent Offices Appropriations Act, FY1952 (IOAA).12
14 Circular A-11, issued by the Office of Management and Budget (OMB), states that what it terms Circular A-11, issued by the Office of Management and Budget (OMB), states that what it terms
“"user chargesuser charges”" includes any includes any “"fee, charge, or assessment the Government levies on a class of the fee, charge, or assessment the Government levies on a class of the
public directly benefiting from, or subject to regulation by, a Government program or activity,public directly benefiting from, or subject to regulation by, a Government program or activity,”
" with the further proviso that the authorizing law with the further proviso that the authorizing law “"must limit the payers of the charges to those must limit the payers of the charges to those
benefiting from, or subject to regulation by, the program or activity.benefiting from, or subject to regulation by, the program or activity.”13"15 OMB identifies the OMB identifies the
following as user charges:following as user charges:
Collections from nonfederal sources for goods and services provided (for Collections from nonfederal sources for goods and services provided (for
example, the proceeds from the sale of goods by defense commissaries, example, the proceeds from the sale of goods by defense commissaries,
electricity by power marketing administrations, stamps by the Postal Service, electricity by power marketing administrations, stamps by the Postal Service,
fees charged to enter national parks, and premiums charged for flood and health fees charged to enter national parks, and premiums charged for flood and health
insurance);insurance);
Voluntary payments to social insurance programs, such as Medicare Part B Voluntary payments to social insurance programs, such as Medicare Part B
insurance premiums;insurance premiums;
Miscellaneous customs fees (for example, U.S. Customs Service merchandise Miscellaneous customs fees (for example, U.S. Customs Service merchandise
processing fees);processing fees);
Proceeds from asset sales (property, plant, and equipment);Proceeds from asset sales (property, plant, and equipment);
Proceeds from the sale of natural resources (such as timber, oil, and minerals);Proceeds from the sale of natural resources (such as timber, oil, and minerals);
Outer Continental Shelf receipts;Outer Continental Shelf receipts;
Spectrum auction proceeds;Spectrum auction proceeds;
Many fees for permits and regulatory and judicial services;Many fees for permits and regulatory and judicial services;
  • Specific taxes and duties on an exception basis; and
  • Credit program fees deposited into the credit program account and recorded in the budget on a current basis.
    • Independent Offices Appropriation Act Title V of the IOAA expressed the sense of Congress that "any work, service, publication, report, document, benefit, privilege, authority, use, franchise, license, permit, certificate, registration, or similar thing of value or utility performed, furnished, provided, granted, prepared, or issued by any Federal agency … shall be self-sustaining to the full extent possible." Further, the statute provided that "the head of each Federal agency is authorized by regulation … to prescribe therefor such fee, charge, or price, if any, as he shall determine." The reference to this authority originating in the IOAA was superseded by a recodification of Title 31 in 1982 (P.L. 98-258) that replaced the original authority.

    Although originally enacted in an appropriations act, this authority is permanent legislation and applies to all federal agencies (except mixed-ownership government corporations). Furthermore, this language authorizes agencies to charge fees but does not mandate that they do so.16 The Supreme Court held in National Cable Television Association v United States in 1974 that fees levied under the authority provided in the IOAA must be based on the value of the thing provided. A charge in excess of that to offset the cost of public activities, as well as private benefits of regulatory activities, could arguably be considered a tax, which is not what is authorized by the statute.17

    The language in Title 31 currently states

    Each charge shall be—

    (1) fair; and

    (2) based on—

    (A) the costs to the Government;

    (B) the value of the service or thing to the recipient;

    (C) public policy or interest served; and

    (D) other relevant facts.

    Specific taxes and duties on an exception basis; and

    10 This is because a House decision not to enforce the Origination Clause would not insulate a law from challenge in
    the courts. In U.S. v. Munoz-Flores, 495 U.S. 385, 391-397 (1990), the Supreme Court held, “Although the House
    certainly can refuse to pass a bill because it violates the Origination Clause, that ability does not absolve this Court of
    its responsibility to consider constitutional challenges to congressional enactments.” And later, “A law passed in
    violation of the Origination Clause would thus be no more immune from judicial scrutiny because it was passed by
    both Houses and signed by the President than would a law passed in violation of the First Amendment.”
    11 For more on this enforcement procedure, see CRS Report R46556, Blue-Slipping: Enforcing the Origination Clause
    in the House of Representatives    , by James V. Saturno.
    12 Title V of P.L. 82-137, codified at 31 U.S.C. §9701.
    13 OMB, Circular A-11, Preparation, Submission, and Execution of the Budget, §20, p. 34,
    https://www.whitehouse.gov/wp-content/uploads/2018/06/a11.pdf.
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    Congressional Rules and Practices Concerning Nonrevenue Collections

     Credit program fees deposited into the credit program account and recorded in
    the budget on a current basis.
    Independent Offices Appropriation Act
    Title V of the IOAA expressed the sense of Congress that “any work, service, publication, report,
    document, benefit, privilege, authority, use, franchise, license, permit, certificate, registration, or
    similar thing of value or utility performed, furnished, provided, granted, prepared, or issued by
    any Federal agency … shall be self-sustaining to the full extent possible.” Further, the statute
    provided that “the head of each Federal agency is authorized by regulation … to prescribe
    therefor such fee, charge, or price, if any, as he shall determine.”
    Because fees levied under the authority provided in the IOAA must be based on the costs to the
    government or the value of the thing provided, OMB has issued Circular A-25 to establish federal OMB has issued Circular A-25 to establish federal
    policy regarding how fees are to be assessed for government services.policy regarding how fees are to be assessed for government services.1418 The circular provides The circular provides
    information on the scope and types of activities subject to user charges and the basis upon which information on the scope and types of activities subject to user charges and the basis upon which
    user charges are to be set. It also provides guidance for agency implementation of charges and the user charges are to be set. It also provides guidance for agency implementation of charges and the
    disposition of collections.disposition of collections.
    The Miscellaneous Receipts Act
    Some statutes may provide specific authority for fees to be retained by an agency when a service Some statutes may provide specific authority for fees to be retained by an agency when a service
    is intended to be operated on a substantially self-sustaining basis. Absent such specific authority, is intended to be operated on a substantially self-sustaining basis. Absent such specific authority,
    however, the Miscellaneous Receipts Act requires that any nonrevenue collections be credited to however, the Miscellaneous Receipts Act requires that any nonrevenue collections be credited to
    the general fund of the Treasury as miscellaneous receipts.the general fund of the Treasury as miscellaneous receipts.1519 Fees assessed solely under the Fees assessed solely under the
    authority of the IOAA do not include such an exception, and the proceeds of such fees are authority of the IOAA do not include such an exception, and the proceeds of such fees are
    consequently deposited in the Treasury as miscellaneous receipts. Once deposited, funds are consequently deposited in the Treasury as miscellaneous receipts. Once deposited, funds are
    available to be appropriated but are not otherwise available to be used by the depositing agency available to be appropriated but are not otherwise available to be used by the depositing agency
    without further statutory authorization.without further statutory authorization.
    Treatment of Nonrevenue Collections in the Federal
    Budget Process
    The definition of The definition of budget authority in Section 3(2) of the Congressional Budget Act provides for in Section 3(2) of the Congressional Budget Act provides for
    nonrevenue collections to be treated as negative amounts of budget authority rather than as nonrevenue collections to be treated as negative amounts of budget authority rather than as
    revenues.revenues.1620 As a consequence, the collected funds are presented in the budget as offsets against As a consequence, the collected funds are presented in the budget as offsets against
    spending authority. A reduction of offsetting collections or receipts is correspondingly recorded as spending authority. A reduction of offsetting collections or receipts is correspondingly recorded as
    a positive amount of budget authority. The authority to spend these funds is not automatic, a positive amount of budget authority. The authority to spend these funds is not automatic,
    however, and they are further categorized as offsetting collections or receipts, depending on their however, and they are further categorized as offsetting collections or receipts, depending on their
    availability for obligation. The authority to obligate may be provided in either appropriations acts availability for obligation. The authority to obligate may be provided in either appropriations acts
    or other laws.

    14 OMB, Circular A-25, https://www.whitehouse.gov/wp-content/uploads/2017/11/Circular-025.pdf.
    15 Act of March 3, 1849 (Statutes at Large, vol. 9, Thirtieth Congress, Sess. II, Chap. CX), codified at 31 U.S.C.
    §3302(b).
    16 P.L. 93-344, codified at 2 U.S.C. §622(2).
    Congressional Research Service

    5
    Congressional Rules and Practices Concerning Nonrevenue Collections

    Offsetting Collections
    or other laws. Offsetting Collections Offsetting collections are nonrevenue collections authorized by law to be credited to Offsetting collections are nonrevenue collections authorized by law to be credited to
    appropriations or fund expenditure accounts.appropriations or fund expenditure accounts.1721 These fees are available for obligation to meet the These fees are available for obligation to meet the
    account’account's purpose without further congressional action. Accordingly, because the receiving s purpose without further congressional action. Accordingly, because the receiving
    agency has the authority to obligate and expend offsetting collections, offsetting collections agency has the authority to obligate and expend offsetting collections, offsetting collections
    constitute budget authority. For example, fees charged by the U.S. Citizenship and Immigration constitute budget authority. For example, fees charged by the U.S. Citizenship and Immigration
    Services to expedite its processing of certain petitions and applications are available to carry out Services to expedite its processing of certain petitions and applications are available to carry out
    those purposes.those purposes.
    Offsetting Receipts
    In contrast, offsetting receipts are nonrevenue collections that are recorded as offsets against In contrast, offsetting receipts are nonrevenue collections that are recorded as offsets against
    gross outlays but are not authorized to be credited to a specific expenditure account.gross outlays but are not authorized to be credited to a specific expenditure account.1822 In some In some
    cases they are termed undistributed offsetting receipts, because they are offset against totals for cases they are termed undistributed offsetting receipts, because they are offset against totals for
    the government as a whole rather than from a single agency or subfunction in order to avoid the government as a whole rather than from a single agency or subfunction in order to avoid
    presenting a distorted budgetary picture of agency or subfunction totals. Offsetting receipts may presenting a distorted budgetary picture of agency or subfunction totals. Offsetting receipts may
    be deposited in either specific accounts or in the general fund of the Treasury. Offsetting receipts be deposited in either specific accounts or in the general fund of the Treasury. Offsetting receipts
    cannot be obligated and expended, however, without further congressional action. Because cannot be obligated and expended, however, without further congressional action. Because
    offsetting receipts are not available for obligation, they do not constitute budget authority until offsetting receipts are not available for obligation, they do not constitute budget authority until
    Congress takes action to appropriate them. An example of such collections is rents and royalties Congress takes action to appropriate them. An example of such collections is rents and royalties
    paid to the federal government for offshore oil and gas leases.paid to the federal government for offshore oil and gas leases.


    Author Information

    James V. Saturno

    Specialist on Congress and the Legislative Process


    17 For an account of how OMB presents offsetting collections in the budget, see OMB, Circular A-11, Preparation,
    Submission, and Execution of the Budget    , §20, p. 32.
    18 For an account of how OMB presents offsetting receipts in the budget, see OMB, Circular A-11, Preparation,
    Submission, and Execution of the Budget    , §20, p. 33
    Congressional Research Service

    6
    Congressional Rules and Practices Concerning Nonrevenue Collections



    Disclaimer
    This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
    shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
    under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
    than public understanding of information that has been provided by CRS to Members of Congress in
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    Congressional Research Service
    R47292 · VERSION 1 · NEW
    7

    Footnotes

    1.

    Article 1, Section 8. For a discussion of federal taxing power, see CRS Report R46551, The Federal Taxing Power: A Primer, by Milan N. Ball.

    2.

    See CRS Report R41408, Rules and Practices Governing Consideration of Revenue Legislation in the House and Senate, by Megan S. Lynch.

    3.

    For additional discussion of the use of governmental fees and other nonrevenue receipts, see Congressional Budget Office (CBO), Charging for Federal Services, December 1, 1983, https://www.cbo.gov/publication/15511; The Growth of Federal User Charges, August 1, 1993, https://www.cbo.gov/publication/20892; and The Growth of Federal User Charges: An Update, October 1, 1995, https://www.cbo.gov/publication/14950.

    4.

    "Policies of the Chair," Congressional Record, vol. 137 (January 3, 1991), p. 66.

    5.

    This is in contrast to an interpretation recommended in the Report of the President's Commission on Budget Concepts, and frequently applied in other contexts, that categorizes any receipts that are "'governmental' in character" as revenues, including regulatory fees and fines. See Report of the President's Commission on Budget Concepts (Washington: GPO, 1967), p. 65.

    6.

    "Announcement by the Speaker Pro Tempore," Congressional Record, daily edition (January 4, 2021), p. H38. In this announcement, a reference is made to a full statement of the policy announced at the beginning of the 102nd Congress with respect to jurisdictional concepts related to clause 5(a) of Rule XXI, Congressional Record, vol. 137 (January 3, 1991), p. 66.

    7.

    For a discussion of how the concept of revenues is interpreted for enforcing House prerogatives under Article I, Section 7, clause 1, of the U.S. Constitution (known as the Origination Clause), see CRS Report R46558, The Origination Clause of the U.S. Constitution: Interpretation and Enforcement, by James V. Saturno.

    8.

    The jurisdiction of the House Ways and Means Committee and the Senate Finance Committee are specified in House Rule X, clause 1(t), and Senate Rule XXV, paragraph 1(i), respectively.

    9.

    House Rule XII, clause 2.

    10.

    For more information on points of order and the enforcement of House rules, see CRS Report 98-307, Points of Order, Rulings, and Appeals in the House of Representatives, by Valerie Heitshusen.

    11.

    Rules of the House of Representatives, in House Rules and Manual, One Hundred Eighteenth Congress, H.Doc. 117-161, 117th Cong., 2nd sess., [compiled by] Jason A. Smith, Parliamentarian (Washington: GPO, 2023), §1066).

    12.

    This is because a House decision not to enforce the Origination Clause would not insulate a law from challenge in the courts. In U.S. v. Munoz-Flores, 495 U.S. 385, 391-397 (1990), the Supreme Court held, "Although the House certainly can refuse to pass a bill because it violates the Origination Clause, that ability does not absolve this Court of its responsibility to consider constitutional challenges to congressional enactments." And later, "A law passed in violation of the Origination Clause would thus be no more immune from judicial scrutiny because it was passed by both Houses and signed by the President than would a law passed in violation of the First Amendment."

    13.

    For more on this enforcement procedure, see CRS Report R46556, Blue-Slipping: Enforcing the Origination Clause in the House of Representatives, by James V. Saturno.

    14. Title V of P.L. 82-137. This provision was superseded in 1982 when Title 31 was recodified in P.L. 97-258 and is now codified at Title 31, Section 9701, of the U.S. Code. Although the current language was enacted in P.L. 97-258, the authority is still often referred to as originating in the IOAA, such as in OMB Circular A-25 (revised 1993), Transmittal Memorandum No. 1, User Charges, https://www.whitehouse.gov/wp-content/uploads/2017/11/Circular-025.pdf. For a broad discussion of user fees, see Clayton P. Gillette and Thomas D. Hopkins, "Federal User Fees: A Legal and Economic Analysis," Boston University Law Review, vol. 67 (1987), pp. 795-874. 15.

    OMB, Circular A-11 (July 2024), Preparation, Submission, and Execution of the Budget, §20, p. 34, https://www.whitehouse.gov/wp-content/uploads/2018/06/a11.pdf.

    16.

    Government Accountability Office, Principles of Federal Appropriations Law (3rd ed., 2008), GAO-08-978SP, vol. 3, ch. 12, sec. D, p. 12-148.

    17. National Cable Television Ass'n v United States, 415 U.S. 336 (1974). 18.

    OMB, Circular A-25 (revised 1993), Transmittal Memorandum No. 1, User Charges, https://www.whitehouse.gov/wp-content/uploads/2017/11/Circular-025.pdf.

    19.

    Act of March 3, 1849 (Statutes at Large, vol. 9, Thirtieth Congress, Sess. II, Chap. CX), codified at 31 U.S.C. §3302(b).

    20.

    P.L. 93-344, codified at 2 U.S.C. §622(2).

    21.

    For an account of how OMB presents offsetting collections in the budget, see OMB, Circular A-11, Preparation, Submission, and Execution of the Budget, §20, p. 32.

    22.

    For an account of how OMB presents offsetting receipts in the budget, see OMB, Circular A-11, Preparation, Submission, and Execution of the Budget, §20, p. 33