	Introduction

The U.S. Constitution vests Congress with the power to raise revenue and borrow money. Those funds may only by drawn from the Treasury in consequence of appropriations made by law. The Constitution, however, is largely silent with respect to the President's role in the budget process. Instead, the executive budget process as it exists today is primarily the result of statutes enacted by Congress. 20-27) established the modern executive budget process. The Budget and Accounting Act altered this practice by establishing a legal framework for a consolidated federal budget proposal to be developed by the President and submitted to Congress prior to the start of each fiscal year. This report outlines many of the budgetary procedures that are performed by the President, the Office of Management and Budget (OMB), and agencies. Though it is not legally binding, the President's budget initiates the congressional budget process and provides Congress with recommended spending levels for agency programs, projects, and activities funded through the annual appropriations acts. Under current law, the President is responsible for developing and submitting a consolidated budget to Congress no later than the first Monday in February prior to the start of the fiscal year. The development of the President's budget begins approximately 18 months prior to the start of the fiscal year that the budget will cover, which is about 10 months before the President must submit the proposal to Congress. The budget submissions of the past three Presidents have each included the following volumes: 
Budget of the U.S. Government —includes a short budget message summarizing the President's policy priorities, summary tables of budgetary aggregates, and a detailed narrative description of proposed government activities, organized by issue and agency; Historical Tables —provides a historical overview of federal government finances, including time series statistics on budget authority, government receipts, outlays, government employment, gross domestic product (GDP), and the federal debt going back several decades and in some cases as far back as 1789; Analytical Perspectives —contains in-depth analysis of government programs, including credit and insurance programs, discussion of crosscut budgets that span two or more agencies, and technical explanation of the budget baselines used in the analyses and estimates contained in the President's budget proposal; and Appendix —includes detailed budget estimates and financial information on individual programs and appropriations accounts, proposed text of appropriations language, and information on the legislative and judicial branch appropriations that are not included in other volumes of the President's budget proposal. Agency Budget Requests and Justifications

Once the President has submitted the budget, OMB and agency officials explain and justify the request to Congress. Early in the congressional budget process, often in the week following the submission of the President's budget, the OMB Director and other Cabinet officials usually provide testimony regarding the President's broad budgetary objectives before congressional committees. Agencies also submit written justification of their budget requests to the appropriations committee and subcommittees of jurisdiction in each chamber. The President, OMB, and agencies also possess limited authority to make spending adjustments after appropriations and other spending legislation have been enacted. The budget authority provided to agencies may not be automatically available for obligation or expenditure. With certain exceptions, the Antideficiency Act requires that appropriated funds be apportioned (or divided)—by time period, function, or program—in order to prevent agencies from exhausting their appropriated funds prematurely. Funds appropriated to executive agencies are apportioned by OMB. Reallocation of Budget Authority: Transfers and Reprogramming

Agencies may also possess limited authority to reallocate funds during budget execution, either by transfers or by reprogramming. Transfers typically involve a shift of budgetary resources from one appropriations account to another, while reprogramming involves a shift of budgetary resources from one project or purpose to another within an appropriations account. For example, transfers may be limited to a specific dollar amount. Under the procedures established by the Impoundment Control Act (ICA) of 1974 (Title X of P.L. Under existing law, there are additional executive budgetary procedures that are triggered under specific, less common circumstances. A funding gap occurs when full-year or interim appropriations are not enacted by the start of the fiscal year.
The U.S. Constitution vests Congress with the power to raise revenue and borrow money. Those funds may only be drawn from the Treasury in consequence of appropriations made by law. The Constitution, however, is largely silent with respect to the President's role in the budget process. Instead, the current executive budget process is largely the result of statutes enacted by Congress.
The executive budget process consists of three main phases: development of the President's budget proposal, submission and justification of the President's budget proposal, and execution of enacted appropriations and other budgetary legislation. The purpose of this report is to provide an introduction to many elements of the executive budget process, highlighting the roles of the President, the Office of Management and Budget (OMB), and executive agencies.
The Budget and Accounting Act of 1921 established the modern executive budget process. It created a legal framework for a federal budget proposal to be developed by the President and submitted to Congress prior to the start of each fiscal year. In practice, development of the President's budget proposal begins approximately 18 months prior to the start of the fiscal year to which it applies. Executive agencies submit their requests and justification materials to OMB for examination and review. After final decisions have been made by the President, the budget proposal is compiled by OMB. Under current law, the President must submit the budget proposal to Congress no later than the first Monday in February.
Once the President has submitted the budget, OMB and agency officials explain and justify the request to Congress. Early in the congressional budget process, often in the week following the submission of the President's budget, the OMB director and other Cabinet officials typically provide testimony regarding the President's broad budgetary objectives before congressional committees. In addition, agencies typically submit written justifications of their budget requests to Congress, and agency officials often will testify before the committees of jurisdiction.
The President's budget, though not legally binding, provides Congress with recommended spending levels for programs, projects, and activities that are funded through appropriations and other budgetary legislation. Funds provided in appropriations and other budgetary legislation are not immediately available for obligation or expenditure. With certain exceptions, the Antideficiency Act requires that funds be apportioned (or divided), often by fiscal quarter, prior to obligation or expenditure. Agencies then allocate those funds to programs, projects, and activities.
Congress has recognized the need to permit agencies some flexibility during budget execution, and it has provided agencies with limited authority to make spending adjustments. For example, Congress may provide agencies with limited authority to reallocate funds from one appropriations account to another (i.e., transfers), or from one purpose to another within an appropriations account (i.e., reprogramming). Under the Impoundment Control Act (ICA) of 1974, the President may withhold appropriated funds temporarily (referred to as deferrals) or propose to Congress permanent cancellations of budget authority (referred to as rescissions).
Finally, certain executive budgetary procedures are triggered under limited, less common circumstances. For example, OMB and agencies have established procedures for implementing a shutdown of certain government operations in the event that their full-year or interim appropriations are not enacted by the start of the fiscal year. OMB and agencies may also be subject to additional procedures in the event of a statutorily prescribed sequestration.