# Federal Budget Process
![[econ-budget-calendar-wheel.svg]]
*The statutory budget calendar versus the reality of continuing resolutions and shutdown cliffs.*
The annual cycle by which the United States decides what to spend — on paper a
sequence laid out by the Budget and [[Impoundment Control Act]] of 1974, in practice
a process that increasingly **breaks down into stopgaps and brinkmanship**. The whole
thing turns on the constitutional [[Power of the Purse]]: Congress, not the president,
appropriates.
## The textbook sequence
1. **[[President's Budget Request]]** — the [[Office of Management and Budget]]
submits the president's proposal (statutorily due the first Monday in February;
often late). A request, not law.
2. **[[Budget Resolution]]** — the House and Senate Budget Committees write a
concurrent resolution setting top-line spending and revenue targets. Non-binding,
not signed by the president — but it unlocks [[Reconciliation]].
3. **[[Appropriations Process]]** — the Appropriations Committees write **twelve**
bills that actually fund discretionary government. Due by the Oct 1 start of the
fiscal year.
4. **Mandatory spending** — [[Social Security]], [[Medicare]], [[Medicaid]] and
[[Net Interest on the Debt]] flows automatically under permanent law and
are **not** part of the annual appropriations; see [[Discretionary vs Mandatory Spending]].
## Where it breaks
The twelve bills almost never pass on time. The fallbacks:
- **[[Continuing Resolution]]** — a stopgap freezing spending at prior levels.
- **[[Government Shutdown]]** — what happens when even a CR fails (the FY2026 shutdown
ran 43 days, the longest ever).
- **Omnibus / minibus** — bundling the bills into one giant package at the deadline.
- **[[Reconciliation]]** — the filibuster-proof fast track for taxes and mandatory
spending (the vehicle for the [[Big Beautiful Bill]]).
## The RWKB angle
The process is the battlefield for the [[Power of the Purse]]. Two recurring fights
run through this folder: **Congress vs. president** over whether the executive can
refuse to spend appropriated money ([[Rescission and Impoundment]], the [[Russell Vought]] doctrine), and **majority vs. minority** over using [[Reconciliation]] to
bypass the filibuster. The breakdown into perpetual CRs and shutdowns is itself the
story — governing by crisis.
## Related
- [[President's Budget Request]] · [[Budget Resolution]] · [[Appropriations Process]]
- [[Continuing Resolution]] · [[Government Shutdown]] · [[Reconciliation]] · [[Debt Ceiling]]
- [[Rescission and Impoundment]] · [[Impoundment Control Act]] · [[Budget Hub]]
- [[How Federal Money Moves]] — what happens *after* enactment: warrant, apportionment, obligation, outlay