Defense Budget Process
Each year defense bills can go through anywhere from five to seven steps.
Click here to download a budget flow chart in PDF.
Step 1: Presidential Budget
When: Usually comes out in early February
Who prepares it: Office of Management and Budget is in charge, with the participation of the Department of Defense, Department of Energy, etc.
What does it do: Recommends spending levels for various programs and agencies in the form of budget authority (BA), which is the legal authority for federal agencies to obligate expenditures (known as outlays)
Step 2: Congressional Budget Resolution
When: Congressional Budget Act of 1974 stipulates an April 15 deadline for completion, but this is frequently not met and there are no penalties
Who writes it: House and Senate Budget Committees
What does it do: Establishes the overall ceiling for spending by the Pentagon and other agencies for the upcoming fiscal year
Step 3: Defense Authorization
When: Usually May/June
Who prepares it: House and Senate Armed Services Committees
What does it do: Establishes, continues, or modifies program-by-program funding ceilings and provides the budget authority for federal agencies to obligate funds. Authorization bills also often function as mechanisms for setting non-budget related policy, such as stipulating reports that Congress is requesting, reforming the Pentagon contracting process, and making changes to Defense Department personnel policy
Step 4: Defense Appropriations
When: House and Senate Appropriations Committees tend to report bills in June/July
Who prepares it: House and Senate Defense Appropriations Subcommittees
What does it do: Provides funding to pay for programs
Step 5: Energy and Water Appropriations
When: House and Senate Appropriations Committees tend to report bills in June/July
Who prepares it: House and Senate Energy and Water Appropriations Subcommittees
What does it do: Provides funding for nuclear weapons programs
Step 6: Supplemental Appropriations
When: Can occur throughout the year
Who prepares it: House and Senate Defense Appropriations Subcommittees
What does it do: Provides funding requested outside the normal authorization and appropriations process
Step 7: Continuing Resolution ("CR")
When: Typically early in a fiscal year, from October to January
Who prepares it: House and Senate Appropriations Committees
What does it do: Provides temporary funding early in a fiscal year for those federal agencies for which Congress has not yet appropriated funds. Five CRs have been passed per year, on average, over the past 30 fiscal years
Some Real Life Examples
Authorization: Telling your child that he/she can have $1,000 to spend at college
Appropriation: Sending a $1,000 check to the student
Outlays: The student spending the money
Click here to download a budget flow chart in PDF.