Order Code RS20368
October 21, 1999
CRS Report for Congress
Received through the CRS Web
Overview of the Congressional Budget Process
Bill Heniff Jr.
Analyst in American National Government
Government and Finance Division
The congressional budget process, in the broadest sense, consists of the consideration
and adoption of spending, revenue, and debt-limit legislation within the framework of an
annual concurrent resolution on the budget. Under the Congressional Budget Act of 1974
(Titles I-IX of P.L. 93-344, 2 U.S.C. 601-688), the House and Senate Budget Committees
develop the budget resolution, assisted by the nonpartisan Congressional Budget Office.
Congress begins its budget process once the President submits his budget; the
President is required by law to submit a comprehensive federal budget no later than the
first Monday in February. For an overview of the timetable of this process, see CRS
report 98-472 GOV, The Congressional Budget Process Timetable. Congress is not
bound by the President’s budget, and through its budget process may adopt budgetary
legislation reflecting different priorities than the President’s.
Budget Resolution
The budget resolution, the centerpiece of the congressional budget process, sets forth
aggregate spending and revenue levels, and functional levels of spending, for the upcoming
fiscal year and at least the following four fiscal years. As a concurrent resolution, it is not
presented to the President for his signature, and, thus, does not become law. By setting
forth a comprehensive statement of congressional priorities on budgetary matters,
however, the budget resolution provides a framework for subsequent legislative action on
the budget during each congressional session.
The Budget Committees of the House and Senate develop the annual budget
resolution, after receiving testimony from executive branch officials, Members of
Congress, and the public, and receiving “views and estimates” statements from other
congressional committees with jurisdiction over spending and revenues. For more
information on the formulation of the budget resolution, see CRS report 98-512 GOV,
Formulation and Content of the Budget Resolution.
The 1974 CBA sets April 15 as a target date for completion of the annual budget
resolution. The House and Senate consider budget resolutions under expedited
procedures. No spending, revenue, or debt-limit legislation for the upcoming fiscal year
may be considered before a budget resolution has been adopted unless a waiver of the
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rules is granted. However, the House may consider annual appropriations bills without a
waiver after May 15 if a budget resolution has not been adopted by then.
Once a budget resolution has been adopted, Congress may enforce its provisions
through a complex set of points of order. For example, any legislation, or amendment,
that would cause the aggregate levels to be violated is prohibited from being considered.
Further, the total budget authority and outlays set forth in the budget resolution are
allocated to each House and Senate committee that has jurisdiction over specific spending
legislation. Any legislation, or amendment, that would cause these committee allocations
to be exceeded is prohibited. Finally, the House and Senate Appropriations Committees
subdivide their allocations among their respective 13 subcommittees. A point of order
may be raised against any appropriations act, or amendment, that would cause these
subdivisions to be exceeded. Congress also may use reconciliation legislation (discussed
below) to enforce direct spending, revenue, and debt-limit provisions of a budget
resolution. For more on these enforcement procedures, see CRS report 98-815 GOV,
Budget Resolution Enforcement.
Subsequent Budgetary Legislation
About one-third of all federal spending is considered discretionary and is provided
through the annual appropriations process. The House and Senate Appropriations
Committees have jurisdiction over appropriations measures. The 13 subcommittees of
each Appropriations Committee are each responsible for one of the regular appropriations
acts. The regular appropriations acts provide budget authority for the next fiscal year. If
the regular appropriations acts are not completed by October 1, Congress must adopt a
continuing resolution providing stop-gap funding. For more on the appropriations
process, see CRS report 97-684 GOV, The Congressional Appropriations Process: An
Introduction.
Revenues and the remaining federal spending referred to as direct spending (which
funds mostly entitlements) are determined largely by existing law. No action is necessary
by Congress for them to continue, although Congress usually modifies some revenue and
direct spending programs each session. Congress may include reconciliation directives in
a budget resolution in order to initiate necessary changes in revenue, direct spending, and
debt-limit laws. Reconciliation directives instruct one or more committees to recommend
legislative language necessary to achieve the levels of revenues, direct spending, and debt
limit agreed to in the budget resolution. The legislative language recommended by
committees is packaged by the House and Senate Budget Committees “without substantive
revision” into one or more reconciliation bills. In some instances, reconciliation
instructions may direct a committee to report its legislative recommendations directly to
its house. Reconciliation legislation is considered under expedited procedures that limit
debate and place restrictions on amendments. For more on the reconciliation process, see
CRS report 98-814 GOV, Budget Reconciliation Legislation: Development and
Consideration.
Congress also may adopt revenue, direct spending, and debt-limit measures
individually. The substantive provisions of such legislation must comply with the budget
policies set forth in the budget resolution. Any freestanding budgetary legislation is
subject to the points of order mentioned above.

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