Congressional Budget and Impoundment Control Act of 1974
Encyclopedia
The Congressional Budget and Impoundment Control Act of 1974 is a United States federal law that governs the role of the Congress
in the United States budget process
.
. Title III governs the procedures by which Congress annually adopts a budget resolution, a concurrent resolution
setting forth fiscal policy that is not signed by the President
. The budget resolution, in turn, sets limits on revenues and spending that govern Congress through procedural objections called points of order. The budget resolution also can generate a budget reconciliation bill
, which the Congress considers under expedited procedures unusual for the Senate
.
The act has been amended several times, especially through provisions in the Balanced Budget and Emergency Deficit Control Act of 1985
, the Budget Enforcement Act of 1990
, and the Balanced Budget Act of 1997
. The original 1974 legislation, however, remains the basic blueprint for budget procedures today.
The limitation on debate that prevents a budget reconciliation bill from being filibuster
ed in the Senate (that is requiring a three-fifths vote to end debate) led to frequent attempts to attach amendments unrelated to the budget to the reconciliation bills. In response, budget reconciliation acts of 1985, 1986, and 1990 adopted what is known as the Byrd Rule (Section 313 of the Budget Act). http://www.rules.house.gov/Archives/RL30862.pdf The Byrd Rule allows Senators to raise points of order (which can be waived only by a three-fifths majority of Senators, provisions that fail are colloquially referred to as "Byrd droppings" http://www.govexec.com/dailyfed/0405/041805ol.htm ) against provisions in the reconciliation bills that are "extraneous," where extraneous is defined in the rule according to one of six provisions. http://www.rules.house.gov/archives/byrd_rule.htm Provisions are considered extraneous if they:
Since the reconciliation bill has covered as many as ten years, the fifth provision can have the effect of requiring that any tax cut or spending increase be approved by a three-fifths majority, or else the law must return to its previous state after ten years. This is responsible for the use of sunset clauses in several recent budget acts, when proposed tax cuts commanded majority support but not the necessary three-fifths majority to suspend the Byrd Rule. For example, many of the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001
and the Jobs and Growth Tax Relief Reconciliation Act of 2003
would have expired as soon as fiscal year 2010 if not extended. The provisions that were to expire included the $1000 per child tax credit, the 10% income tax bracket for low-income workers, and the deduction for state and local sales taxes paid. The expiration dates in those Acts were inserted in order to avoid Byrd Rule points of order.
have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation. Congress is not required to vote on such a proposal and has ignored most Presidential requests.
In response, some have called for a line item veto to strengthen the rescission power and force Congress to vote on the disputed funds. The Act was passed in response to Congressional feelings that President Nixon was abusing his ability to impound the funding of programs he opposed, and effectively removed the historical Presidential power of impoundment
.
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
in the United States budget process
United States budget process
The process of creating the budget for the United States government is known as the budget process. The framework used by Congress to formulate the budget was established by the Budget and Accounting Act of 1921, the Congressional Budget and Impoundment Control Act of 1974, and by other budget...
.
The Congressional budget process
Titles I through IX of the law are also known as the Congressional Budget Act of 1974. Title II created the Congressional Budget OfficeCongressional Budget Office
The Congressional Budget Office is a federal agency within the legislative branch of the United States government that provides economic data to Congress....
. Title III governs the procedures by which Congress annually adopts a budget resolution, a concurrent resolution
Concurrent resolution
A concurrent resolution is a resolution adopted by both houses of a bicameral legislature that lacks the force of law and does not require the approval of the chief executive.-United States Congress:...
setting forth fiscal policy that is not signed by the President
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
. The budget resolution, in turn, sets limits on revenues and spending that govern Congress through procedural objections called points of order. The budget resolution also can generate a budget reconciliation bill
Reconciliation (United States Congress)
Reconciliation is a legislative process of the United States Senate intended to allow consideration of a budget bill with debate limited to twenty hours under Senate Rules...
, which the Congress considers under expedited procedures unusual for the Senate
United States Senate
The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...
.
The act has been amended several times, especially through provisions in the Balanced Budget and Emergency Deficit Control Act of 1985
Gramm-Rudman-Hollings Balanced Budget Act
The Gramm-Rudman-Hollings Balanced Budget and Emergency Deficit Control Act of 1985 and Budget and Emergency Deficit Control Reaffirmation Act of 1987 were, according to U.S...
, the Budget Enforcement Act of 1990
Budget Enforcement Act of 1990
The Budget Enforcement Act of 1990 was enacted by the United States Congress as title XIII of the Omnibus Budget Reconciliation Act of 1990 to enforce the deficit reduction accomplished by that law and revise the budget control process of the Federal Government...
, and the Balanced Budget Act of 1997
Balanced Budget Act of 1997
The Balanced Budget Act of 1997, , was signed into law on August 5, 1997. It was an omnibus legislative package enacted using the budget reconciliation process and designed to balance the federal budget by 2002....
. The original 1974 legislation, however, remains the basic blueprint for budget procedures today.
The limitation on debate that prevents a budget reconciliation bill from being filibuster
Filibuster
A filibuster is a type of parliamentary procedure. Specifically, it is the right of an individual to extend debate, allowing a lone member to delay or entirely prevent a vote on a given proposal...
ed in the Senate (that is requiring a three-fifths vote to end debate) led to frequent attempts to attach amendments unrelated to the budget to the reconciliation bills. In response, budget reconciliation acts of 1985, 1986, and 1990 adopted what is known as the Byrd Rule (Section 313 of the Budget Act). http://www.rules.house.gov/Archives/RL30862.pdf The Byrd Rule allows Senators to raise points of order (which can be waived only by a three-fifths majority of Senators, provisions that fail are colloquially referred to as "Byrd droppings" http://www.govexec.com/dailyfed/0405/041805ol.htm ) against provisions in the reconciliation bills that are "extraneous," where extraneous is defined in the rule according to one of six provisions. http://www.rules.house.gov/archives/byrd_rule.htm Provisions are considered extraneous if they:
- do not produce a change in outlays or revenues;
- produce changes in outlays or revenue which are merely incidental to the non-budgetary components of the provision;
- are outside the jurisdiction of the committee that submitted the title or provision for inclusion in the reconciliation measure;
- increase outlays or decrease revenue if the provision's title, as a whole, fails to achieve the Senate reporting committee's reconciliation instructions;
- increase net outlays or decrease revenue during a fiscal year after the years covered by the reconciliation bill unless the provision's title, as a whole, remains budget neutral; or
- contain recommendations regarding the OASDI (social security)Social Security (United States)In the United States, Social Security refers to the federal Old-Age, Survivors, and Disability Insurance program.The original Social Security Act and the current version of the Act, as amended encompass several social welfare and social insurance programs...
trust funds
Since the reconciliation bill has covered as many as ten years, the fifth provision can have the effect of requiring that any tax cut or spending increase be approved by a three-fifths majority, or else the law must return to its previous state after ten years. This is responsible for the use of sunset clauses in several recent budget acts, when proposed tax cuts commanded majority support but not the necessary three-fifths majority to suspend the Byrd Rule. For example, many of the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001
Economic Growth and Tax Relief Reconciliation Act of 2001
The Economic Growth and Tax Relief Reconciliation Act of 2001 , was a sweeping piece of tax legislation in the United States by President George W. Bush...
and the Jobs and Growth Tax Relief Reconciliation Act of 2003
Jobs and Growth Tax Relief Reconciliation Act of 2003
The Jobs and Growth Tax Relief Reconciliation Act of 2003 , was passed by the United States Congress on May 23, 2003 and signed into law by President George W. Bush on May 28, 2003...
would have expired as soon as fiscal year 2010 if not extended. The provisions that were to expire included the $1000 per child tax credit, the 10% income tax bracket for low-income workers, and the deduction for state and local sales taxes paid. The expiration dates in those Acts were inserted in order to avoid Byrd Rule points of order.
Impoundment
Title X of the law, also known as the Impoundment Control Act of 1974, specifies that the President may propose to Congress that funds be rescinded. If both the Senate and the House of RepresentativesUnited States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...
have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation. Congress is not required to vote on such a proposal and has ignored most Presidential requests.
In response, some have called for a line item veto to strengthen the rescission power and force Congress to vote on the disputed funds. The Act was passed in response to Congressional feelings that President Nixon was abusing his ability to impound the funding of programs he opposed, and effectively removed the historical Presidential power of impoundment
Impoundment
Impoundment is the election of a President of the United States not to spend money that has been appropriated by the U.S. Congress. The precedent for presidential impoundment was first set by Thomas Jefferson in 1801. The power was available to all presidents up to and including Richard Nixon, and...
.
Further reading
- Dauster, William G. Budget Process Law Annotated: 1993 Edition. Washington, D.C.: Government Printing OfficeUnited States Government Printing OfficeThe United States Government Printing Office is an agency of the legislative branch of the United States federal government. The office prints documents produced by and for the federal government, including the Supreme Court, the Congress, the Executive Office of the President, executive...
, 1993. ISBN 0-16-041726-0 - Frumin, Alan S.Alan Frumin-Career:A 1968 graduate of Colgate University in Hamilton, New York and Georgetown University Law Center, Frumin's entire career has been devoted to "directing parliamentary practice." He began in 1974 by editing Deschler's Precedents of the House of Representatives before joining the Senate...
"Congressional Budget." In Riddick's Senate Procedure, 502-642. Washington, D.C.: Government Printing Office, 1992. - Keith, Robert. Introduction to the Federal Budget Process. Washington, D.C.: Congressional Research ServiceCongressional Research ServiceThe Congressional Research Service , known as "Congress's think tank", is the public policy research arm of the United States Congress. As a legislative branch agency within the Library of Congress, CRS works exclusively and directly for Members of Congress, their Committees and staff on a...
, 2008. - U.S. Congress. House of Representatives. Committee on the Budget. Compilation of Laws and Rules Relating to the Congressional Budget Process.