Overview of Funding Mechanisms in the Federal Budget Process, and Selected Examples

Source: Jessica Tollestrup, Congressional Research Service (CRS), CRS Report to Congress, R44582, August 4, 2016

Every year, Congress considers numerous pieces of legislation that would create or modify federal government programs and activities. The variety of approaches used cross the federal budget to fund these programs and activities involve different timelines for budgetary decisionmaking, and different processes (and committees) within Congress to make those decisions. How a particular funding mechanism is structured requires tradeoffs between the frequency of congressional review and the predictability of funding for the program. The purpose of this report is to explain these approaches, illustrating them with examples of how they have been applied in practice…..