The Federal Budget Process

2863 words 12 pages
Running head: The Federal Budget Process

The Federal Budget Process

This report focuses on the federal budget process of the United States of America. The annual federal budget begins with a detailed proposal from the President in February. The budget request is developed by the President’s Office of Management and Budget (OMB). Next, Congress creates a blueprint called a budget resolution that sets limits on how much each committee can spend (or reduce revenues) over the course of the year. The terms of the budget resolution are then enforced against individual appropriations, entitlement bills, and tax bills on the House and Senate floors. In addition, Congress sometimes uses a special procedure called
…show more content…

Furthermore, the President does have to ask for funding each year for discretionary or appropriated programs, which fall under the jurisdiction of the House and Senate Appropriations Committees. In order to prevent discretionary programs from not operating, the program must have their funding renewed each year. Most defense expenditure is discretionary, as are budgets for K-12 education, health research, and housing, etc. Discretionary programs make up about one-third of all federal spending. The President’s budget provides details of how much fund he recommends for each discretionary program (Policy Basics, 2011).
The President’s budget can also include changes to mandatory or entitlement programs such as Social Security, Medicare, Medicaid, and certain other programs (including but not limited to food stamps, federal civilian and military retirement benefits, veterans' disability benefits, and unemployment insurance) that are not controlled by annual appropriations (Policy Basics, 2011). For example, when President Bush proposed adding a prescription drug benefit to Medicare, he had to show a corresponding increase in Medicare costs in his budget, relative to what Medicare would otherwise be projected to cost. Similarly, if the President were to propose a reduction in Medicaid payments to states, his budget would show lower Medicaid costs than projected under current law. (Policy Basics, 2011). In addition,


  • Health Care Financial Management: Reporting Practices and Ethics
    1388 words | 6 pages
  • Pa 582 Entire Course with Final Exam Public Policy Formulation and Implementation Keller
    912 words | 4 pages
  • Baldwin Water Works
    2922 words | 12 pages
  • Procurement Management Make-or-Buy Analysis
    2893 words | 12 pages
  • Cafr Analysis
    3453 words | 14 pages
  • Fair Credit Reporting Act and Personal Finance
    1885 words | 8 pages
  • Strategic Planning for a Health Care Facility
    3835 words | 16 pages
  • Regulatory Agencies Paper
    968 words | 4 pages
  • Historical Overview of Us Govt's Role in Long Term Healthcare
    1184 words | 5 pages
  • Financial & Managerial Accounting
    1317 words | 6 pages