Understanding Appropriations: How the Government Allocates Funding

By: Abigail Kelly

For many, myself included, the federal appropriations process can be confusing due to the unfamiliar terms and methods by which the government allocates funding for agencies and programs. However, understanding the process is essential for public health advocacy and leadership because it determines how funds (your tax dollars) are allocated and what programs receive support. The process influences whether programs are expanded, maintained, changed, or even eliminated, impacting how they serve you and your community.

Appropriations is a process by which Congress assigns and approves the use of U.S. funds for agencies, which in turn fund projects and programs throughout the nation in the next fiscal year. For example, Congress is currently establishing the fiscal year (FY) 2027 budget, which will run from October 1, 2026, through September 30, 2027.

Most appropriations are designated through bills passed by Congress and signed by the President that provide an agency with budget authority, meaning the agency is allowed to make payments from the U.S. Treasury for purposes specified within the bill. Such funding is considered discretionary because the spending is variable and may change at the discretion of Congress and the President when the bills are created. Discretionary appropriations can be made annually, meaning the funding expires after one year, or multi-year, meaning the funds are available for a defined period exceeding one fiscal year. Some funding, called mandatory spending, is spent without votes by Congress, and it is directed by existing laws for entitlement programs like Social Security and Medicare. Additional, or supplemental spending, is an allocation that occurs after the annual appropriations process.

The appropriations process begins when the President submits their budget request in early February. These requests are often quite lengthy and detail what the president deems as priorities for the upcoming budget.

I read this year's budget request multiple times, and the content was surprising to say the least.

Following the President’s request, Congress takes budget requests and works to incorporate those needs into the budget bill.

Unfortunately, connecting with congressional offices and obtaining an appropriations request form can be time-consuming and may require many, many calls, as I have learned.

From the U.S House Committee on Appropriations. (n.d).

After the request process, budget and oversight hearings begin with markups, debates, and amendments from May to July. From July to September, negotiations and final floor discussions take place before a final vote and the president’s signature. If an appropriations bill has not been passed by the end of the fiscal year, the government will shut down. In such cases, Continuing Resolutions (CRs) may be enacted. These resolutions are used to prevent a government shutdown by providing agencies with funding until regular appropriations are approved.

While the process can seem daunting, learning about appropriations and getting involved can be extremely beneficial. As the saying goes, you don’t know what you don’t know, and when it comes to understanding how the government allocates and spends money, sometimes more is better.