Understanding the Federal Budget Process

Every year, the president submits a comprehensive budget request to Congress the first Monday of February. The budget request, which is merely a recommendation and starting point for Congress, includes the administration’s policy and funding priorities and the economic outlook for the coming fiscal year.

The House and Senate Budget Committees then hold hearings on the president’s request and usually report a concurrent resolution that sets the amount of money each committee (i.e. Education and Workforce, Transportation, Agriculture, etc.) is authorized to spend in the next fiscal year.

In May, the House begins consideration of the 11 annual appropriations bills. All bills go through committee hearings and a process called a markup.” The markup is a process of final review prior to consideration of the bill on the House floor. After passage of the bill in the House, it goes through the same process in the Senate. If there is any disagreement between the House and Senate, a conference committee must work out the differences in the two bills. Once these differences are settled and both chambers pass the legislation in its final version, it is sent to the president for his signature. The new fiscal year begins October 1.