Public Policy: Economic Policy

The Federal Budget

How we spend our money says a lot about our values and priorities. When we consider the scope of government we must consider the amount of money spent by government. How do the branches of government work together to create a federal budget and in so doing effect public policy? Study the diagram below to better understand the process.

Cycle of preparation of the federal government’s annual budget; The process begins: By the first Monday in February, the president submits a budget to Congress. By April 15 (a target date), the House and Senate must agree on a budget resolution, which establishes a framework for total spending and revenue. Mandatory (uncontrollable) spending goes to the House Ways and Means and the Senate Finance and other committees deal with revenues and entitlement issues; House Budget and Senate Budget; With their input, the Budget Committees prepare a reconciliation bill; Reconciliation Bill; Congress votes on the bill; Discretionary (controllable spending); The Appropriations Committee in each chamber deals with discretionary spending issues; Each Appropriations Committee divides the issues among 13 subcommittees; Each of the 13 subcommittees produces a bill; In meetings between the House and Senate subcommittees 13 final bills are produced; Congress votes on the bills; Bill must be signed into law by October 1. When passed, the bills are submitted to the President for signature or veto.

Explore: Federal Spending, Visualized: 2012 Budget Proposal Edition| The Rundown News Blog | PBS NewsHour | PBS The federal budget is huge and it's very difficult to get an idea of what it actually looks like. Check out these various visual representations of ways to view the federal budget. What can you learn from them?