Appropriation
A law passed by Congress that authorizes federal agencies to spend a specific amount of money for a specific purpose during a defined period.
How It Works
Appropriations are how Congress controls the federal purse. The annual appropriations process begins with the President's budget request, followed by Congressional hearings, committee markups, and floor votes. There are 12 annual appropriation bills covering different parts of the government. When Congress can't pass all 12 bills on time (which is most years), it passes a Continuing Resolution (CR) to fund the government at prior-year levels temporarily. If neither appropriations nor a CR is enacted, the government shuts down.
Related Terms
- Obligation — A legally binding commitment by the government to spend money — the point at which funds are formally committed to a contract, grant, or other agreement.
- Continuing Resolution (CR) — A temporary funding measure passed by Congress when it fails to complete the annual appropriations process — keeping the government funded at prior-year levels.
- Discretionary Spending — Federal spending that Congress controls through annual appropriations — covering defense, education, transportation, and other agency budgets.
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About This Definition
This definition is part of the TaxDollarData Federal Spending Glossary — 31 terms explaining how the U.S. government spends taxpayer money. All definitions are written in plain language for taxpayers, journalists, contractors, and researchers.