Congress must create an annual budget resolution in response to the President's budget request according to the Congressional Budget and Impoundment Control Act of 1974 (also known as the Congressional Budget Act) . The budget resolution must cover the time span of a minimum of five fiscal years, which includes the upcoming fiscal year plus the four following fiscal years. The budget resolution establishes budget totals, allocations, entitlements, and sometimes includes reconciliation instructions to certain House or Senate committees. Federal spending is apportioned among 20 functional categories such as national defense, agriculture, and transportation.
Nixon Departing the White House after His Resignation
The Congressional Budget and Impoundment Control Act of 1974 (Congressional Budget Act), created during the Nixon administration, established the current budget resolution process.
The budget resolution also sets spending ceilings for the Congressional committees that have jurisdiction over spending. Even though the budget resolution covers at least five fiscal years, the House and Senate Committees on Appropriations receive allocations only for the upcoming fiscal year because appropriations measures are annual. After the appropriations committees receive their spending ceilings, they are responsible for dividing the amount among their respective subcommittees.
The budget resolution binds Congress, but it is not law since it is not sent to the President. It does not provide budget authority or change the level of revenues. Instead, the budget resolution serves as a blueprint for the actual appropriations process and provides Congress with some control over this process.
April 15th is the target date for congressional adoption of the budget resolution set by the Congressional Budget Act. However, Congress has frequently not met this target date since the fiscal year 1977. In some instances, Congress has not adopted a budget resolution. No penalty exists if the budget resolution is not completed by April 15th or if it is not completed at all. However, some enforceable spending ceilings cannot be established until the budget resolution is completed. The Congressional Budget Act also prohibits House and Senate floor consideration of appropriations measures for the upcoming fiscal year before the budget resolution is completed. However, the House can bypass this prohibition after May 15th and the Senate can bypass it by adopting a motion to waive the rule by majority vote.