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The federal budget process determines how the U.S. government raises and spends trillions of dollars each year. The process involves multiple steps, competing priorities, and frequent delays.
Here’s how a budget goes from presidential proposal to law…and what happens when the process doesn’t go as planned.
Step 1: The President Submits a Budget Request
Each February, the President submits a budget request to Congress for the upcoming fiscal year. This request is solely a recommendation.
Recent example: The 2026 Fiscal Year White House Proposal, aimed to be submitted in February 2025, was officially submitted in May 2025.
Step 2: Congressional Budget Resolution
The House and Senate Budget Committees each draft and vote on their own budget resolutions.
What’s a budget resolution? It’s a non-binding framework that outlines Congress’s priorities for spending and revenue for the coming fiscal year and the next 5-10 years. Think of it as a blueprint rather than a binding law. ‘Non-binding’ means Congress doesn’t have to follow it exactly, allowing for flexibility in how the final budget may be implemented.
The resolution also includes reconciliation instructions, which direct specific committees to draft legislation that achieves certain budgetary goals, such as cutting spending or changing tax policy.
Once the House and Senate agree on identical language, they pass a concurrent resolution. This does not require the president’s signature.
- What are “reconciliation instructions?”
Instructions that direct specific committees in the House and Senate to draft legislation to achieve specific budgetary goals
Step 2.5: Budget Reconciliation (Optional)
If the budget resolution includes reconciliation instructions, Congress may use the reconciliation process. Reconciliation allows budget-related bills to pass the Senate with just 51 votes, rather than the usual 60-vote threshold needed to overcome a filibuster.
Committees draft legislation to meet the goals outlined in the reconciliation instructions. These bills can change spending levels, adjust revenue through tax policy, or modify the debt limit.
Reconciliation doesn’t happen every year. It’s an optional tool Congress uses when it wants to expedite significant budget legislation.
Recent example: The 2025 One Big Beautiful Bill Act (OBBBA) used reconciliation to fast-track major budget changes.
Step 3: Appropriations Process
While the budget resolution sets overall spending targets, the appropriations process determines exactly how much money each federal program receives.
The House and Senate Appropriations Committees divide the work among 12 subcommittees, each responsible for a different area of government spending (defense, agriculture, transportation, etc.). These subcommittees draft individual appropriations bills that set precise funding levels for discretionary programs.
Congress can pass these bills separately or combine them into a single omnibus spending bill.
- What if Congress misses the deadline?
If appropriations bills aren’t passed by October 1, Congress must pass a continuing resolution (CR), a temporary funding measure that keeps the government running at current levels. Without either appropriations bills or a CR signed by the president, the government shuts down. During a shutdown, some government services pause, and federal workers may be furloughed without pay until funding is restored.
Step 4: Congressional Voting
Both the House and Senate must approve appropriations bills. In the House, a simple majority (218 votes) is needed. In the Senate, most legislation requires 60 votes to overcome a filibuster, though appropriations bills packaged in reconciliation need only 51 votes.
Step 5: Presidential Signature → Budget Becomes Law
Once Congress passes an appropriations bill, it goes to the president. If the president signs it, the bill becomes law, and the government is funded. If the president vetoes it, Congress can override the veto with a two-thirds majority in both chambers, though this rarely happens.
Key Takeaways
- The budget process involves multiple actors: the president proposes, Congress decides, and both must agree for anything to become law.
- The process is supposed to wrap up by October 1, but delays are common, often requiring continuing resolutions.
- Reconciliation is a special tool that allows certain budget bills to pass the Senate with just 51 votes.
- A budget resolution sets priorities, but appropriations bills actually allocate the money.