No single official decides how every federal dollar is spent. Congress establishes annual funding for federal agencies through appropriations, while existing laws govern much mandatory spending, including programs such as Social Security and Medicare. The president proposes a budget and can sign or veto the funding bills Congress sends. Those formal roles leave room for influence at several stages: agencies develop requests, the White House shapes a proposal, and lawmakers negotiate appropriations. The result is a process with divided authority, not one person holding the whole budget. USA.gov U.S. Department of the Treasury
Agencies begin with requests
The process starts well before the fiscal year in which funding will be used. Federal agencies prepare budget requests and send them to the White House Office of Management and Budget. OMB considers those requests as it develops the president’s budget proposal, which is then submitted to Congress. This gives agencies a chance to describe their needs and the White House a chance to set priorities across government. A request, however, is a proposal for funding, not an appropriation that authorizes the agency to spend it. USA.gov
Imagine an agency seeking money for a program it administers. It can build that request into its submission to OMB, and the president’s proposal may include an amount for the agency. But the request and proposal do not themselves settle the final annual funding level. Congress must act through the appropriations process for discretionary agency funding. This hypothetical example separates the agenda-setting influence of a request from the formal authority that comes with enacted funding. USA.gov
Congress writes annual agency funding
Congress sets discretionary funding each year. The federal process divides proposed funding among 12 subcommittees, which hold hearings and handle different government functions. The House and Senate develop their own budget resolutions, negotiate a common version, and must pass the same funding bills. The process gives lawmakers authority over annual agency appropriations, as well as opportunities to debate the purpose and level of the proposed spending. USA.gov
The president’s role remains consequential at this stage. Once Congress approves funding bills and sends them to the White House, the president can sign or veto them. A signature enacts the bill; a veto can send Congress back to negotiate or pursue the steps available under the legislative process. The president therefore influences the outcome through the proposal and approval stages, but does not write and enact the appropriations alone. Congress must pass the legislation. USA.gov
Existing laws govern mandatory spending
Not all federal spending is decided in an annual appropriations vote. Mandatory spending is directed by existing law and includes programs such as Social Security and Medicare, along with other payments to people, businesses, and state or local governments. Treasury’s guide distinguishes it from discretionary spending, which is formally approved through the annual appropriations process. Changing the level or structure of mandatory spending generally involves changing the laws that govern it, rather than simply setting an agency’s annual appropriation. U.S. Department of the Treasury
This distinction helps explain why the phrase “Congress controls the budget” can conceal different mechanisms. Congress writes annual funding for discretionary programs, but previously enacted statutes shape mandatory payments. The president can propose legislative changes, and any change requiring new law must proceed through Congress and the presidential approval process. Interest on federal debt is another major spending category, distinct from the annual discretionary and mandatory classifications described in the budget process. USA.gov U.S. Department of the Treasury
Authority and payment are different stages
An appropriation gives an agency budget authority; it is not the same as a record of cash already paid out. Treasury distinguishes obligations, such as a contract or grant commitment, from outlays, the money actually paid. That difference matters when readers follow a funding decision: a law can authorize spending, an agency can commit funds, and payment may occur later. A dashboard showing outlays therefore answers a different question from a record of obligations or a bill’s appropriated amount. U.S. Department of the Treasury
The practical answer to who decides is layered. Agencies identify needs, OMB and the president assemble a proposal, Congress enacts annual discretionary funding and existing laws govern mandatory payments, and the president signs or vetoes appropriations bills. Later, agencies administer programs and make payments under the authority Congress provided. Each stage can affect the eventual flow of federal money, but the stages are not interchangeable. Tracking a spending figure responsibly means asking whether it describes a request, enacted authority, an obligation, or a completed outlay. USA.gov U.S. Department of the Treasury
Sources & further reading
- Federal budget process ↗USA.gov
- Federal spending guide ↗U.S. Department of the Treasury
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