Each year the President is responsible for preparing the Government’s budget for the next fiscal year and presenting it to Congress, as dictated by the Budget and Accounting Act of 1921.  As part of the budget process, the President must report on the conditions of the Treasury from the end of the last Fiscal Year, as well as the estimates for the ends of the current fiscal year and next fiscal year (assuming his proposed budget numbers). Planning for the budget requires evaluation of funding demands across the different federal departments and agencies, often prioritizing between different interests and goals. The Office of Management and Budget (OMB) plays a critical role in advising the President as he decides his spending priorities, and helps compile information from all of the departments and agencies with regard to their missions and budgetary needs. Once the requests from the departments and agencies have been prioritized and compiled into the President’s official budget proposal, it is sent to Congress.

In Congress, the House is responsible for beginning the work with the proposed budget. There are 12 separate appropriations bills which originate in the individual subcommittees of the House Appropriations Committee (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies; Commerce, Justice and Science and Related Agencies; Defense; Energy and Water Development; Financial Services and General Government; Homeland Security; Interior, Environment, and Related Agencies; Labor, Health and Human Services, Education and Related Agencies; Legislative Branch; Military Construction, Veterans Affairs and Related Agencies; and State, Foreign Operations, and Related Programs, Transportation, Housing and Urban Development, and Related Agencies). The House subcommittees establish funding recommendations (i.e. marks) for the agencies and programs under their jurisdiction before forwarding the appropriations bills to the full House Appropriations Committee for consideration.

Upon passage by the House Appropriations Committee, the bill is reported to the House of Representatives for a vote. Once a given appropriations bill is passed on the House floor (i.e., the House mark is set), it is forwarded to one of the 12 companion Senate Appropriations Subcommittees (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies; Commerce, Justice, Science, and Related Agencies; Defense; Energy & Water Development; Financial Services and General Government; Homeland Security; Interior, Environment, and Related Agencies; Labor, Health and Human Services, Education, and Related Agencies; Legislative Branch; Military Construction, Veterans Affairs, and Related Agencies; State, Foreign Operations, and Related Programs; Transportation, Housing and Urban Development, and Related Agencies). From the Senate Subcommittee, the bill is ultimately sent to the Senate floor, in procedure similar to that followed in the House, where the Senate mark is set.

After consideration and passage by the Senate, the House and Senate meet in Conference Committee to reconcile any differences between the two versions of the bill and agree on the conference mark. After the conferenced bill has been passed by both the House and the Senate, it is sent to the President for signature or veto.