Like most federal agencies, ED receives funds in support of its mission through various federal budget and appropriations processes. For example, ED receives both mandatory and discretionary appropriations; ED is annually provided forward funds and advance appropriations for some—but not all—discretionary programs; ED awards both formula and competitive grants; and a portion of ED's budget subsidizes student loan costs (through both direct loans and loan guarantees). Because of this complexity, analyzing ED's budget requires an understanding of a broad range of federal budget and appropriations concepts. This report provides an introduction to these concepts as they are used specifically in the context of the congressional appropriations process for ED. The first section of this report provides an introduction to key terms and concepts in the federal budget and appropriations process with special relevance for ED. The second section answers frequently asked questions (FAQs) about federal funding for the department, as well as closely related questions about education funding in general. The third section includes a brief description of, and links to, reports and documents that provide more information about budget and appropriations concepts. How much funding does the Department of Education receive annually? How much does the federal government spend on education? Where can information be found about the President's budget request and congressional appropriations for the Department of Education? How much ED funding is in the congressional budget resolution? What is the difference between the amounts in appropriations bills and report language? What happens to education funding if annual appropriations are not enacted before the start of the federal fiscal year? What happens if an ED program authorization "expires"?
Like most federal agencies, the Department of Education (ED) receives funds in support of its mission through various federal budget and appropriations processes. While not unique, the mechanisms by which ED receives, obligates, and expends funds can be complex. For example, ED receives both mandatory and discretionary appropriations; ED is annually provided forward funds and advance appropriations for some—but not all—discretionary programs; ED awards both formula and competitive grants; and a portion of ED's budget subsidizes student loan costs (direct loans and loan guarantees). As such, analyzing ED's budget requires an understanding of a broad range of federal budget and appropriations concepts. This report provides an introduction to these concepts as they are used specifically in the context of the congressional appropriations process for ED.
The first section of this report provides an introduction to key terms and concepts in the federal budget and appropriations process for ED. In addition to those mentioned above, the report includes explanations of terms and concepts such as authorizations versus appropriations; budgetary allocations, discretionary spending caps, and sequestration; transfers and reprogramming; and matching requirements.
The second section answers frequently asked questions about federal funding for ED or education in general. These are as follows:
How much funding does ED receive annually? How much does the federal government spend on education? Where can information be found about the President's budget request and congressional appropriations for ED? How much ED funding is in the congressional budget resolution? What is the difference between the amounts in appropriations bills and report language? What happens to education funding if annual appropriations are not enacted before the start of the federal fiscal year? What happens if an ED program authorization "expires"?
The third section includes a brief description of, and links to, reports and documents that provide more information about budget and appropriations concepts.