Federal Budget Glossary
Navigating the complexities of the federal budget can be challenging, especially with the specialized terminology used in discussions and documents. To assist in demystifying these terms, Civics for Life offers a comprehensive Federal Budget Glossary. This resource is designed to provide clear and concise definitions of key budget-related terms, making the intricacies of federal budgeting more accessible to all citizens.
Twelve annual bills passed by Congress that allocate funding to specific government agencies and programs. These must be enacted before the start of the fiscal year (October 1) or temporary funding measures are needed.
A legislative action that establishes or continues a federal program or agency and sets the maximum amount of money that can be spent on it. Authorization does not provide actual funding—that comes through appropriations.
The legal authority provided by federal law to enter into financial obligations that will result in immediate or future outlays of federal government funds.
A non-binding agreement passed by Congress that sets overall spending and revenue targets for the federal budget. It provides a framework but does not allocate specific funding
A temporary funding measure passed by Congress to keep the federal government running when appropriations bills are not enacted by the start of the fiscal year. It typically maintains prior year funding levels.
A nonpartisan federal agency that provides budgetary and economic information to Congress, including cost estimates for proposed legislation.
Spending that is controlled through the annual appropriations process. It includes funding for most defense, education, and transportation programs.
Government programs that provide benefits to individuals who meet eligibility criteria. Funding for these is generally considered mandatory.
A Senate procedure where one or more senators extend debate on a piece of legislation to delay or prevent a vote. It can be ended with a 60-vote cloture motion.
The 12-month period used for budgeting and accounting in the federal government, running from October 1 to September 30.
An independent, nonpartisan agency that works for Congress. It audits federal spending and evaluates how taxpayer dollars are spent.
An official within a federal agency who conducts audits and investigations to detect and prevent fraud, waste, abuse, and mismanagement.
Spending required by law for programs like Social Security, Medicare, and Medicaid. This spending continues automatically unless laws are changed.
Part of the Executive Office of the President, OMB assists in developing the President’s budget proposal and oversees the implementation of federal policy.
A single document that packages together many measures into one larger bill, often used to pass multiple appropriations or legislative items at once.
A nonpartisan advisor in both the House and Senate who provides guidance on legislative procedures, including what is allowed under rules like budget reconciliation.
The formal proposal submitted by the President to Congress outlining the administration’s funding priorities and economic projections for the upcoming fiscal year.
A legislative process that allows expedited consideration of certain tax, spending, and debt limit legislation. It cannot be filibustered in the Senate and only requires a simple majority to pass.
Funds collected by the federal government, mainly through taxes, which finance federal programs and services.
Automatic, across-the-board spending cuts that occur if Congress exceeds budget caps set by law.
Additional funding bills that provide resources for unforeseen or emergency needs not covered in regular appropriations.
Accounts designated by law to hold federal revenues dedicated to specific purposes, such as the Social Security Trust Fund or the Highway Trust Fund.