Understanding Who Controls the Federal Budget in the United States

Understanding Who Controls the Federal Budget in the United States

The federal budget process in the United States is a complex and multifaceted system that primarily resides in the hands of Congress, with the President playing a crucial role as well. This article aims to clarify who has the authority to control the federal budget and how the process works.

Who Makes the Budget?

Between the Congress and the President, Congress is constitutionally responsible for making the budget. They decide the total amount to be spent annually, allocate funds to different departments, and oversee the movement of public funds.

As specified in the Constitution and federal laws, no money can be withdrawn from the Treasury unless it is authorized by a law, and regular statements and accounts of public money's receipts and expenditures are published.

The process begins with various units and offices submitting their budget requests five years in advance. These requests are compiled by agencies, including the Pentagon, and submitted to the President, who then presents the budget request to Congress during January or March.

The Budget Process

Both the House and Senate have 156 calendar days (128 work days) to review and approve the budget. The House of Representatives holds the power to create the budget, while the Senate has the responsibility to approve it. When both chambers disagree, they attempt to reconcile their differences to reach an agreement.

Once the budget is signed by the President, it can be reallocated between departments as needed.

Is the Federal Budget Controlled?

The federal budget is not controlled by a single entity but rather by various entities working together. Think of it as a large group of teenagers sharing the same credit card, which in this case, belongs to Uncle Sam.

Despite this collective responsibility, the Constitution has witnessed numerous instances where the budget has been approved for consecutive deficit years. Specifically, Congress has proposed and the President has signed 18 consecutive deficit budgets.

Furthermore, the mismanagement of public funds has been a persistent issue. Shifting focus to the impeachment inquiries rather than focusing on the budget is often criticized as a misuse of time and resources.

The Role of Congress and the President

Congress funds agencies, offices, and programs. Each of these entities has its own policies that dictate how the allocated money is spent. The process begins with the President informing Congress of the required funding for various departments. The House of Representatives compiles this information and creates the budget.

Around April, agencies and services provide detailed requirements for the fiscal year, and these are compiled into revised budget proposals by the Department of Defense and Office of Personnel Management.

The budget process involves not just creating but also revising budgets as needed, especially concerning military and personnel matters. The general public has access to the government's activities in broad terms, which are informed by the budget.

Laws and the Presidency

At the federal level, any bills become laws once signed by the President. If Congress is in session, a bill not vetoed by the President becomes law 10 days after it is signed. If Congress is not in session, the President can perform a "pocket veto," where the bill expires after 10 days.

In case of a presidential veto, the two houses of Congress each need a two-thirds majority to override it.

Understanding these processes and roles is crucial for anyone interested in public affairs and governmental budgeting.