I. Authorization
vs Appropriation
II.
Where
Does The Money Go?
III.
What
Is Rule XVI?
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I.
Authorizations and Appropriations: What's the Difference?
Authorization laws have two basic purposes. They establish,
continue, or modify federal programs, and they are
a prerequisite under House and Senate rules (and sometimes
under statute) for the Congress to appropriate budget
authority for programs.
Some authorization laws provide spending directly.
In fact, well over half of federal spending now goes
to programs for which the authorizing legislation
itself creates budget authority. Such spending is
referred to as direct, or mandatory, spending. It
includes funding for most major entitlement programs.
(Some entitlements are funded in annual appropriation
acts, but the amounts provided are controlled by the
authorization law that established the entitlement.)
The authorization laws that provide direct spending
are typically permanent, but some major direct spending
programs, such as the Food Stamp program, require
periodic renewal.
Discretionary spending, which is provided in the 13
appropriation acts, now makes up only about one-third
of all federal expenditures. For discretionary
spending, the role of the authorizing committees is
to enact legislation that serves as the basis for
operating a program and that provides guidance to
the Appropriations Committees as to an appropriate
level of funding for the program. That guidance typically
is expressed in terms of an authorization of appropriations.
Such authorizations are provided either as specific
dollar amounts (definite authorizations) or "such
sums as are necessary" (indefinite authorizations).
In addition, authorizations may be permanent and remain
in effect until changed by the Congress, or they may
cover only specific fiscal years. Authorizations that
are limited in duration may be annual (pertaining
to one fiscal year) or multiyear (pertaining to two,
five, or any number of specific fiscal years). When
such an authorization expires, the Congress may choose
to extend the life of a program by passing legislation
commonly referred to as a reauthorization. Unless
the underlying law expressly prohibits it, the Congress
may also extend a program simply by providing new
appropriations. Appropriations made available for
a program after its authorization has expired are
called "unauthorized appropriations."
Longstanding rules of the House allow a point of order
to be raised against an appropriation that is unauthorized.
During initial consideration of a bill in the House
(which by precedent originates appropriation bills),
unauthorized appropriations are sometimes dropped
from the bill. However, the House Committee on Rules
typically grants waivers for unauthorized appropriations
that are contained in a conference agreement. In the
Senate, there is a more limited prohibition against
considering unauthorized appropriations.
Both House and Senate rules require that when the
Committees on Appropriations report a bill, they list
in their respective committee reports any programs
funded in the bill that lack an authorization. The
information in the committee reports, however, differs
somewhat from the information shown in this report.
This report covers programs that at one time
had an explicit authorization that either has expired
or will expire. Unlike the lists shown in the Appropriations
Committee reports, this report does not include programs
for which the Congress has never provided authorizations
of appropriations. For example, some Treasury Department
programs have never received explicit authorizations
of appropriations. They receive appropriations nonetheless
because the authority to obligate and spend funds
is considered "organic"--inherent in the underlying
legislation or executive action that originally empowered
the Treasury to perform particular functions.
As mentioned above, many laws establish programs with
authorizations of discretionary appropriations that
do not expire. Both the Appropriations Committee reports
and this CBO report exclude programs with that type
of authorization because its effect is permanent."
(Excerpted from a Congressional
Budget Office report.)
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II. Where
Does the Money Go?
While the size of the annual federal budget has
increased in dollar terms (reflecting inflation, increased
population and economy) over the years, the proportion
available for common government services has shrunk
dramatically. Competition among federal agencies for
funding is heating up. Over the last three decades,
discretionary spending has been cut significantly
to accomodate rapid growths in other expenses. Discretionary
spending covers everything from road building to police
protection to medical research to our national defense
-- most of the government services with which Americans
are familiar. All other spending is mandatory
-- required by law regardless of what is left over
for discretionary spending. Mandatory spending includes
entitlements such as Social Security and Medicare,
and the enormous interest the U.S. must pay every
year to finance the national debt.
Three decades ago, nearly two-thirds
of the federal
budget was available for discretionary programs:
1996
(in Billions) |
|
Discrentionary |
Entitlement |
Interest |
In the 1970's, entitlement spending
jumped,
placing a crimp on discretionary spending:
1997
(in Billions) |
|
Discrentionary |
Entitlement |
Interest |
By the mid-1980's, interest payments
on
the national debt began to rise:
1986
(in Billions) |
|
Discrentionary |
Entitlement |
Interest |
By 1996, entitlement spending
took half of the budget pie.
In just 30 years, the amount left over for roads,
police,
defense, and most other government services shrunk
to a third of the budget:
1996
(in Billions) |
|
Discrentionary |
Entitlement |
Interest |
Current budget projections show
the same trend. By 2006,
entitlement spending will demand the majority of
the federal budget.
Interest payments will continue to be a major drain
on the Treasury,
and the remaining amount will be divided among discretionary
programs:
2006
(in Billions) |
|
Discrentionary |
Entitlement |
Interest |
Compare
the forty-year difference side-by- side:
1996
(in Billions) |
|
Discrentionary |
Entitlement |
Interest |
|
2006
(in Billions) |
|
Discrentionary |
Entitlement |
Interest |
|
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III. RULE
XVI–Appropriations and Amemdments
to General Appropriations Bills
1.On
a point of order made by any Senator, no amendments
shall be received to any general appropriation bill
the effect of which will be to increase an appropriation
already contained in the bill, or to add a new item
of appropriation, unless it be made to carry out the
provisions of some existing law, or treaty stipulation,
or act or resolution previously passed by the Senate
during that session; or unless the same be moved by
direction of the Committee on Appropriations or of
a committee of the Senate having legislative jurisdiction
of the subject matter, or proposed in pursuance of
an estimate submitted in accordance with law.
2.
The Committee on Appropriations shall not report an
appropriation bill containing amendments to such bill
proposing new or general legislation or any restriction
on the expenditure of the funds appropriated which
proposes a limitation not authorized by law if such
restriction is to take effect or cease to be effective
upon the happening of a contingency, and if an appropriation
bill is reported to the Senate containing amendments
to such bill proposing new or general legislation
or any such restriction, a point of order may be made
against the bill, and if the point is sustained, the
bill shall be recommitted to the Committee on Appropriations.
3.
All amendments to general appropriation bills moved
by direction of a committee having legislative jurisdiction
of the subject matter proposing to increase an appropriation
already contained in the bill, or to add new items
of appropriation, shall, at least one day before they
are considered, be referred to the Committee on Appropriations,
and when actually proposed to the bill no amendment
proposing to increase the amount stated in such amendment
shall be received on a point of order made by any
Senator.
4.
On a point of order made by any Senator, no amendment
offered by any other Senator which proposes general
legislation shall be received to any general appropriation
bill, nor shall any amendment not germane or relevant
to the subject matter contained in the bill be received;
nor shall any amendment to any item or clause of such
bill be received which does not directly relate thereto;
nor shall any restriction on the expenditure of the
funds appropriated which proposes a limitation not
authorized by law be received if such restriction
is to take effect or cease to be effective upon the
happening of a contingency; and all questions of relevancy
of amendments under this rule, when raised, shall
be submitted to the Senate and be decided without
debate; and any such amendment or restriction to a
general appropriation bill may be laid on the table
without prejudice to the bill.
5.
On a point of order made by any Senator, no amendment,
the object of which is to provide for a private claim,
shall be received to any general appropriation bill,unless
it be to carry out the provisions of an existing law
or a treaty stipulation, which shall be cited on the
face of the amendment.
6.
When a point of order is made against any restriction
on the expenditure of funds appropriated in general
appropriation bill on the ground that the restriction
violates this rule, the rule shall be construed strictly
and, in case of doubt, in favor of the point of order.
7.
Every report on general appropriation bills filed
by the Committee on Appropriations shall identify
with particularity each recommended amendment which
proposes an item of appropriation which is not made
to carry out the provisions of an existing law, a
treaty stipulation, or an act or resolution previously
passed by the Senate during that session.
8.
On a point of order made by any Senator, no general
appropriation bill or amendment thereto shall be received
or considered if it contains a provision reappropriating
unexpended balances of appropriations; except that
this provision shall not apply to appropriations in
continuation of appropriations for public works on
which work has commenced.
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