How the USA Budget process actually Works

The US federal budget process is a multi-step procedure involving the executive and legislative branches, aimed at funding government operations for the fiscal year (FY), which runs from October 1 of one year to September 30 of the next. While the process has statutory deadlines outlined in the Congressional Budget and Impoundment Control Act of 1974, these are often missed in practice, leading to continuing resolutions (CRs) to temporarily fund the government and avoid shutdowns. Below, I’ll outline the key phases—formulation, debate, and voting—with associated timelines and deadlines.Formulation PhaseThis begins in the executive branch well before the fiscal year starts:Agency Budget Requests (Summer/Fall of the Previous Year): Federal agencies develop and submit their budget proposals to the Office of Management and Budget (OMB) starting as early as the summer (around July) of the year before the fiscal year in question. For example, for FY 2026 (starting October 1, 2025), agencies would begin this in summer 2024.
OMB Review and Presidential Preparation (Fall-Winter): OMB reviews agency submissions, negotiates adjustments, and works with the President to finalize the proposal. This typically occurs from September through January.

President’s Budget Submission (First Monday in February): The President submits a detailed budget request to Congress, outlining proposed spending, revenues, and priorities for the upcoming fiscal year. This is due by the first Monday in February (e.g., February 3, 2025, for FY 2026).

The Congressional Budget Office (CBO) then analyzes this and submits its own economic and budget outlook report to congressional budget committees by February 15.

Debate and Congressional Action PhaseOnce the President’s budget is submitted, Congress takes over. The process is non-binding for the President’s proposal—Congress can (and often does) modify it significantly. Key steps include:Committee Views and Estimates (Within 6 Weeks of President’s Submission): Congressional committees submit their “views and estimates” on spending and revenues to the House and Senate Budget Committees, typically by mid-March.

Budget Resolution Development (February-April): The House and Senate Budget Committees draft a concurrent budget resolution, which sets overall spending and revenue levels but is not a law (it doesn’t go to the President for signature). This includes targets for discretionary spending (about one-third of the budget, funded annually) and mandatory spending (e.g., entitlements like Social Security). The resolution is due to be reported by the committees and adopted by both chambers by April 15.

Debate occurs in committee hearings, where experts, agency officials, and stakeholders testify.
Appropriations Bills (April-September): After the budget resolution passes (or even if it doesn’t), the House and Senate Appropriations Committees divide the discretionary spending into 12 subcommittees, each drafting an appropriations bill for specific areas (e.g., defense, agriculture). House may begin considering appropriations bills as early as May 15.

The House Appropriations Committee is supposed to report its last bill by June 10.
The full House aims to complete action on all 12 bills by June 30.
The Senate follows a similar process, though often later.
Debate intensifies here, with subcommittee and full committee markups (amendments and votes), followed by floor debates in each chamber where members propose amendments, discuss priorities, and vote.

If the House and Senate versions differ, a conference committee reconciles them.
Reconciliation (If Needed, by June 15): For mandatory spending or revenue changes, Congress may use reconciliation, a fast-track process to bypass filibusters. Action on reconciliation legislation is supposed to be completed by June 15.

Voting and Final Approval PhaseFinal Votes and Enactment (June-September): Both chambers vote on the reconciled appropriations bills. All 12 bills (or omnibus packages combining them) must pass both the House and Senate and be signed by the President by September 30 to fully fund the government for the new fiscal year starting October 1.

In reality, delays are common, and CRs are often passed to extend funding temporarily (e.g., into November or December) while negotiations continue.

This “normal” process is aspirational; in recent years, full appropriations are rarely completed on time due to partisan debates, leading to CRs or shutdowns.