Glossary

Appropriations

The laws through which Congress grants federal agencies authority to spend money each year on discretionary programs.

Also called: appropriations bills, power of the purse, spending bills

Appropriations are laws that give federal agencies legal authority to spend money. Article I, Section 9 of the Constitution says no money may be drawn from the Treasury except through appropriations made by law, which is the basis of Congress's "power of the purse."

Twelve regular appropriations bills, each drafted by a House and Senate subcommittee, fund the discretionary parts of the federal budget, including defense, transportation, education and law enforcement. They differ from an authorization bill, which creates or continues a program and sets policy. Mandatory programs such as Social Security and Medicare are funded outside the annual process. Appropriations are written for a fiscal year that starts on October 1; if they are late, Congress typically passes a continuing resolution.

Appropriators decide not only how much but how: bill text and accompanying reports can set conditions, riders and earmarks. Conservatives often use the process to press for lower spending and policy limits, while others stress its role in funding basic government functions. Failure to pass bills on time can lead to a government shutdown, and the combined total of all twelve is frequently packaged into an omnibus-bill.

Last reviewed November 8, 2026

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Related terms

Continuing resolution A temporary law that keeps federal agencies funded at existing levels when regular appropriations have not been enacted. Authorization bill A law that creates or continues a federal program and sets policy, usually separate from the law that provides its funding. Discretionary spending Federal spending that Congress sets each year through appropriations bills, including defense, transportation and many domestic agencies. Earmark A provision in legislation that directs federal money to a specific project, recipient or location, often requested by a member of Congress. Omnibus bill A single large bill that combines many separate measures, most often a full set of annual spending bills. Government shutdown A lapse in federal appropriations that forces agencies to suspend non-essential operations until funding is restored.