The budget resolution creates enforceable parameters with which spending, revenue, and debt legislation must be consistent. Instead, its purpose is to establish a framework within which Congress considers legislation dealing with spending and revenue. The budget resolution is not intended to establish details of spending or revenue policy. The spending policies in the budget resolution encompass two types of spending legislation: discretionary spending and direct (or mandatory) spending. Discretionary spending is controlled through the appropriations process. Appropriations legislation provides funding for numerous activities such as national defense, education, and homeland security, as well as general government operations. Direct spending, alternately, is provided for in legislation outside of appropriations acts. Direct spending programs are typically established in permanent law that continue in effect until such time as they are revised or terminated by another law. Rather than including levels of spending for specific agencies or programs, the budget resolution establishes congressional priorities by dividing spending among the 20 major functional categories of the federal budget. These 20 functional categories do not correspond to the committee system by which Congress operates. As a result, the spending levels in the 20 functional categories are allocated, or "crosswalked," to the House and Senate committees having jurisdiction over discretionary spending (appropriations committees) and direct spending (legislative committees). These 302(a) amounts hold committees accountable for staying within the spending limits established by the budget resolution. Programmatic Assumptions

It is inevitable that Members will consider the impact on particular programs or agencies when they consider a budget resolution. While the budget resolution does not allocate funds among specific agencies or programs, assumptions underlying the amounts set forth in the functional categories are frequently discussed in the reports accompanying the budget resolution. Budget resolutions often include procedural provisions, such as reserve funds or reconciliation instructions. These provisions often indicate underlying program assumptions or desires of Congress. Each of these subcommittees is responsible for reporting one regular appropriations bill. These suballocations are known as 302(b) subdivisions. For example, the budget resolution for FY2009 included the following language providing for a deficit-neutral reserve fund concerning San Joaquin River restoration and Navajo nation water rights settlements:
In the House, the Chairman of the Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report that would fulfill the purposes of the San Joaquin River Restoration Settlement Act or implement a Navajo Nation water rights settlement and other provisions authorized by the Northwestern New Mexico Rural Water Projects Act by the amounts provided in such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018.
The budget resolution sets forth aggregate levels of spending, revenue, and public debt. It is not intended to establish details of spending or revenue policy and does not provide levels of spending for specific agencies or programs. Instead, its purpose is to create enforceable parameters within which Congress can consider legislation dealing with spending and revenue.
The spending policies in the budget resolution encompass two types of spending legislation: discretionary spending and direct (mandatory) spending. Discretionary spending is controlled through the appropriations process. Appropriations legislation is considered each fiscal year and provides funding for numerous programs such as national defense, education, and homeland security. Direct spending, alternately, is provided for in legislation outside of appropriations acts. Direct spending programs are typically established in permanent law and continue in effect until such time as revised or terminated by another law.
The budget resolution establishes congressional priorities by dividing spending among the 20 major functional categories of the federal budget. These 20 categories do not correspond to the committee system by which Congress operates, and as a result these spending levels must be "crosswalked" to the House and Senate committees having jurisdiction over both discretionary and direct spending. These amounts are known as 302(a) allocations and hold committees accountable for staying within the spending limits established by the budget resolution.
Each Appropriations Committee is responsible for subdividing its 302(a) allocation among its 12 subcommittees. These allocations, referred to as 302(b) subdivisions, establish the maximum amount that each of the 12 appropriations bills can spend.
It is inevitable that Members will consider the impact on particular programs or agencies when they consider a budget resolution. While the budget resolution does not allocate funds among specific agencies or programs, congressional assumptions or desires underlying the amounts set forth in the functional categories are frequently communicated through the budget resolution. Report language accompanying the budget resolution, as well as certain provisions in the budget resolution, can sometimes express non-binding programmatic assumptions and desires.
Budget resolutions also often include procedural provisions such as reserve funds or reconciliation instructions. These provisions may also reflect underlying program assumptions or desires of Congress.