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by John Haughey, FiscalNote
The federal budget has an official timeline, but it doesn't always go according to plan. Learn the steps & processes for how the budget is created and approved!
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Every year, federal agencies, the White House's Office of Management and Budget, and Congress work on a budget for the upcoming fiscal year, which runs from October 1 through September 30. It is a complicated and confusing process. However, one that advocacy and government affairs teams have to follow closely to make sure their public policy agenda and issues are represented fairly.
The federal budget is approved by the House, Senate, and the President combined. There is a lot of back and forth and collaboration to get this to happen and it doesn't always go according to plan.
Technically speaking, there is no specific deadline for the federal budget each year. The fiscal year starts Oct. 1 with or without an approved budget.
While the House is supposed to pass all appropriations bills by June 30, after that, there's no deadline for Congress to submit the final budget to the president. However, once the president receives it, he or she has 10 days to approve or veto it.
The federal budget gets approved once the president signs it. As mentioned before, there is no specific deadline for this to happen and there are a lot of moving pieces in the process.
It’s rarely adhered to, but there is a formal timeline for the appropriations process, as determined by the Congressional Budget Act of 1974.
If things went according to plan every year this is what the federal budget process timeline would look like:
Federal agencies, which have been engaged in internal budget planning for at least six months — as much as 18 months before the fiscal year begins — submit their proposals to the Executive Office of the President’s Office of Management and Budget (OMB) for review.
The president then determines what the administration will support. The OMB notifies agencies of the President’s directives and guidance via what’s known as “passbacks,” issued around Thanksgiving.
Incorporating revisions, agencies submit their final requests to the OMB, which forwards them to the President, who may or may not include them in the President’s budget request to Congress due in February.
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The President traditionally outlines budget priorities in the State of the Union Address.
The Budget and Accounting Act of 1921 requires the President to submit the budget request to Congress by the first Monday in February.
The Congressional Budget Office (CBO) submits its analysis of the President’s budget request to the House and Senate budget committees, with emphasis on long-term fiscal and economic outlooks.
This is a precursor to Congress’s budget resolution.
The deadline for Congress to pass its budget resolution to guide decision-making for 12 appropriation subcommittees, which begin hearings on specific proposals that can last into the summer. Authorizing committees also address potential changes to mandatory spending or tax laws. Committees submit bills to respective chambers for adoption, eventually forming a comprehensive budget.
House begins formally approving annual appropriation bills drafts by appropriation and authorizing committees.
The deadline for the House Appropriations Committee to submit its last annual appropriation bill to committees.
The deadline for Congress to adopt “reconciliation legislation” if such measures are required by the budget resolution approved in April.
The deadline for the House to approve annual appropriation bills. In practice, this rarely occurs.
There is no deadline for Congress to submit its final proposed budget to the President other than a Constitutional mandate that the President must either approve or veto it within 10 days of receiving it. A veto means the process must start again.
If a budget has not been adopted, Congress passes a continuing resolution (CR) to ensure federal agencies have the money to operate – as it did for the FY 2018 budget – or it allows the government to “shut down,” meaning all non-essential programs close and workers are furloughed.
As a government affairs professional, you need to know each step of the federal budget process to make sure you can strategically make sure your issues get the funds needed in the next fiscal year both.
FiscalNote State and CQ Federal provide a modernized approach to monitoring the budget and appropriations process by allowing government relations teams to stay proactive and to take control of their strategy before it gets dictated to them by the yearly funding saga.
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by Lydia Stowe, FiscalNote
by Veronica Magan, FiscalNote