Discretionary Spending: Setting a Topline Amount for FY2025 Appropriations

Discretionary Spending: Setting a Topline Amount for FY2025 Appropriations

INSIGHTi

Discretionary Spending: Setting a Topline
Amount for FY2025 Appropriations
May 1, 2024
Each year, Congress produces appropriations legislation that provides discretionary funding for a broad
range of government activities. The House and Senate Appropriations Committees have jurisdiction over
such legislation, with each of their 12 respective subcommittees responsible for developing one
appropriations bill for the upcoming fiscal year.
To facilitate the development and passage of appropriations legislation, Congress developed a formal
process for granting the Appropriations Committees a topline spending limit (sometimes referred to as a
302(a) allocation), which then allows the committees to develop topline spending limits for each of their
12 subcommittees (often referred to as 302(b) suballocations).
That formal process, as described below, anticipates that the House and Senate agree on a budget
resolution, which can be a contentious and time-consuming process that can include the chambers
negotiating a broad swath of budgetary policy issues. In the past 20 years, Congress has adopted a budget
resolution for nine fiscal years. Congress has, therefore, developed alternative methods for establishing an
enforceable topline amount for the Appropriations Committees. At least one chamber has used such
alternatives for each fiscal year that Congress has not agreed on a budget resolution.
The Budget Resolution
The Congressional Budget Act of 1974 (the Budget Act) created the budget resolution and specifies that
Congress adopt it annually. The budget resolution does not become law—no money is spent or collected
as a result of its adoption. Instead, once agreed to by both chambers in the exact same form, the budget
resolution creates parameters that may be enforced through points of order. (The budget resolution may
also be used to trigger the budget reconciliation process.)
A budget resolution must include the following budgetary levels for the upcoming fiscal year and at least
four out years: total spending, total revenues, deficit (or surplus), new spending for each major functional
category, the public debt, and (in the Senate only) Social Security spending and revenue levels. The
Budget Act also requires that the aggregate amounts of spending recommended in the budget resolution
be allocated among committees.
Congressional Research Service
https://crsreports.congress.gov
IN12353
CRS INSIGHT
Prepared for Members and
Committees of Congress

Congressional Research Service
2
The 302(a) allocation of discretionary spending to the Appropriations Committee effectively sets an
enforceable ceiling on total appropriations. The Budget Act further requires the House and Senate
Appropriations Committees to subdivide the 302(a) amount among their subcommittees, effectively
providing each subcommittee with its own ceiling. These subdivisions are referred to as the 302(b)
suballocations. The authority for making 302(b) suballocations belongs to the Appropriations
Committees, which may later revise them. Such suballocations become effective (and enforceable) in a
chamber once the Appropriations Committee in that chamber has reported them.
Deeming Resolutions
In the absence of agreement on a budget resolution, Congress may employ alternative legislative tools to
serve as a substitute. These alternatives are typically referred to as “deeming resolutions,” because they
are deemed to serve in place of agreement on a budget resolution.
Such mechanisms are not formally defined and have no specifically prescribed content. Instead, they
denote the House and Senate, often separately, creating budgetary limits, often on an ad hoc basis. As
described below, the mechanisms vary in form and function, but they have always included or referenced
certain budgetary levels (e.g., aggregate spending limits and committee spending allocations) and
stipulated that such levels are to be enforceable by points of order as if they had been included in a budget
resolution.
Sometimes deeming resolutions take the form of a simple resolution adopted by just one chamber. For
example, on June 8, 2022, the House adopted H.Res. 1151 (117th Congress) which, among other things,
provided the House Appropriations Committee with a topline spending limit for FY2023 of $1.603
trillion.
Other times, deeming resolutions have stated that the chairs of the House and Senate Budget Committees
shall subsequently file in the Congressional Record specified levels that will then become enforceable as
if they had been included in a budget resolution. These have often been included in legislation creating or
amending statutory limits on discretionary spending (as described below) to create procedural
enforcement during congressional development of appropriations.
Statutory Spending Limits
In recent years, discretionary spending has often been limited by spending caps set in statute, divided into
separately enforceable amounts for defense and nondefense. For FY2012-FY2021, statutory spending
limits were set in the Budget Control Act of 2011 (P.L. 112-25) and periodically revised in other
legislation. For FY2024 and FY2025, statutory spending limits were established in the Fiscal
Responsibility Act (FRA; P.L. 118-5), divided into separate amounts for defense and nondefense. These
spending limits are enforceable by sequestration after the end of a congressional session. Frequently,
Congress has included provisions in these statutes to treat these spending limits as the equivalent of
302(a) allocations to the Appropriations Committees, making them effectively an enforceable ceiling on
total appropriations. Formally, this is done by directing the chairs of the Budget Committees to
subsequently file in the Congressional Record levels that will then become enforceable as if they had
been included in a budget resolution.
For example, the FRA directed each Budget Committee chair to file a 302(a) allocation to the relevant
Appropriations Committee that would be consistent with the established spending limits for FY2024. On
June 21, 2023, the Senate Budget chair filed in the Congressional Record a 302(a) allocation of $1.59
trillion ($886.349 billion in defense and $703.651 billion in nondefense) to the Senate Appropriations
Committee. (There appears to be no record of the House having filed such levels.)
The FRA included a similar provision for FY2025 but only for the Senate.

Congressional Research Service
3
Setting a Topline for FY2025
Although the House and Senate may not come to an agreement on a budget resolution for FY2025 (the
chambers have not adopted a budget resolution when controlled by different parties since 1986), the FRA
established statutory spending levels for FY2025 that may act as a guide for development of
appropriations. (The limits are $895.21 billion for defense and $710.69 billion for nondefense for a total
of $1.606 trillion.)
In addition, the FRA directs the Senate Budget Committee chair to file a 302(a) allocation for the Senate
Appropriations Committee after April 15, 2024, but not later than May 15, 2024. While such authority
does not currently exist for the House, it could be granted through a deeming resolution.

Author Information

James V. Saturno
Megan S. Lynch
Specialist on Congress and the Legislative Process
Specialist on Congress and the Legislative Process

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 connection with CRS’s institutional role.
CRS Reports, as a work of the United States Government, are not subject to copyright protection in the United
States. Any CRS Report may be reproduced and distributed in its entirety without permission from CRS. However,
as a CRS Report may include copyrighted images or material from a third party, you may need to obtain the
permission of the copyright holder if you wish to copy or otherwise use copyrighted material.

IN12353 · VERSION 1 · NEW