Unit 4:Legislation and Policy

Appropriating Federal Money

Appropriating Federal Money

Main Idea:Introduction to Appropriating Federal Money

Notes:• Aside from taxing and

spending, Congress has the power of appropriation, approval of government spending.

• This power is found in Article I, Section 9 of the Constitution, and basically means no branch of government can spend federal money unless Congress approves.

Appropriating Federal Money

Main Idea:Process for Appropriating Federal Funds

Notes:• Step 1: An authorization

bill must be passed that sets up a federal program and designates the amount of money that will be spent on that program.

• The authorization bill will also specify which department must carry out the program.– EX: Department of Housing

and Public Development (H.U.D.)

Appropriating Federal Money

Main Idea:Process for Appropriating Federal Funds (cont’d.)

Notes:• Step 2: An appropriations

bill is created when the department requests the money which was set aside for that specific federal program.

• That request is included in the president’s proposed annual budget.

• Congress decides if the department actually needs the amount requested to carry out their job.

Appropriating Federal Money

Main Idea:Process for Appropriating Federal Funds (cont’d.)

Notes:• Step 3: The appropriations

bills are assigned to House and Senate Appropriations Committees and their subcommittees to study the requests.

• Department heads must testify in these committee hearings about their budgets so that law-makers can get more familiar with the government department and their programs—so they can make a better budget determination.

Appropriating Federal Money

Main Idea:Uncontrollable Expenditures

Notes:• There are some budgetary

areas that the House and Senate Appropriations Committees don’t have a say in.

• These are called uncontrollable expenditures because the government has already committed to spend the money for these things in previous bills and laws.

Appropriating Federal Money

Main Idea:Uncontrollable Expenditures (cont’d.)

Notes:• Some uncontrollable

expenditures include:1. Non-discretionary

Spending2. Earmarks

Appropriating Federal Money

Main Idea:Uncontrollable Expenditures (cont’d.)

Notes:1. Non-discretionary

Spending: Programs that have built-in cost of living increases and require more money because the government has already committed to spend federal money on .– EX: Entitlements:

government programs that continue from one year to the next—such as Social Security, Medicare/Medicaid, Welfare, etc.

Appropriating Federal Money

Main Idea:Uncontrollable Expenditures (cont’d.)

Notes:2. Earmarks: are

portions of a bill that allocate (set aside) a sum of federal money for a specific program or project.