The “Deeming Resolution”: A Budget Enforcement Tool

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§d. (CB) Deeming Resolution – House Budget Counsel

Language English. Item Type Report.

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Policy Basics: Introduction to the Federal Budget Process

When Dates and time periods associated with this report. Creation Date November 14, It also requires only a majority vote to pass, and its consideration is one of the few actions that cannot be filibustered in the Senate. Because it does not go to the President, a budget resolution cannot enact spending or tax law. Instead, it sets targets for other congressional committees that can propose legislation directly providing or changing spending and taxes.

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Congress is supposed to pass the budget resolution by April 15, but it often takes longer. In recent years it has been common for Congress not to pass a budget resolution at all. Budget authority and outlays thus serve different purposes.

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Budget authority represents a limit on the new financial obligations federal agencies may incur by signing contracts or making grants, for example , and is generally what Congress focuses on in making most budgetary decisions. Outlays, because they represent actual cash flow, help determine the size of the overall deficit or surplus. In both the House and Senate, the Appropriations Committee receives a single a allocation for all of its programs.

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It then decides on its own how to divide this funding among its 12 subcommittees, creating what are known as b sub-allocations. Similarly, the various committees with jurisdiction over mandatory programs each get an allocation that represents a total dollar limit on all of the legislation they produce that year.

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Unless it changes an entitlement program such as Social Security or Medicare , authorizing legislation does not actually have a budgetary effect. For example, the education committees could produce legislation that authorizes a certain amount to be appropriated on the Title I education program for disadvantaged children. However, none of that money can be spent until the annual Labor-Health and Human Services-Education appropriations bill — which includes education spending — sets the actual dollar level for Title I funding for the year, which is frequently less than the authorized limit.

Often the report accompanying the budget resolution contains language describing the assumptions behind it, including how much it envisions certain programs being cut or increased.

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  • These assumptions generally serve only as guidance to the other committees. The budget resolution can also include temporary or permanent changes to the congressional budget process. Following adoption of the budget resolution, Congress considers the annual appropriations bills, which are needed to fund discretionary programs in the coming fiscal year, and legislation to enact changes to mandatory spending or revenue levels as specified in the budget resolution.

    The form and content of a deeming resolution is not prescribed, so it may be shaped to meet the particular needs at hand. For example, the House and Senate have used simple resolutions as the legislative vehicle in the past, but a deeming resolution may be incorporated into a bill, such as an annual appropriations act, as a single provision.

    At a minimum, deeming resolutions provide new spending allocations to the Appropriations Committees, but they also may set new aggregate budget levels, provide revised spending allocations to other House and Senate committees, or provide for other related purposes.

    Understanding the Federal Budget Process

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