Continuing Resolution - Federal Budget Procedure

Federal Budget Procedure

The federal government of the United States operates on a budget calendar that runs from October 1 through September 30. Each year, the Congress authorizes each department, agency, or program to spend a specific amount of money, and the President signs the bill into law. This money may not be spent, however, until it has been appropriated for a given purpose. The Department of Justice, for example, is authorized to spend $22.2 billion each year, but may not do so until Congress passes a law that says so.

Because of this system, Congress is required to pass separate spending bills every year to ensure the operation of government. If Congress fails to pass such a bill, or the President fails to sign it into law, non-essential functions of the government will cease, as they are no longer allowed by law to spend money. In order to prevent the interruption of government services, Congress will often pass a continuing resolution. This authorizes government agencies to fund their agencies at the current level until either the resolution expires, or an appropriations bill is passed. A continuing resolution must be passed by both houses of Congress and signed into law by the President.