Congressional Budget Act of 1974: A Comprehensive Overview

The Congressional Budget Act of 1974 (CBA) was a landmark legislation that transformed the budget process in the United States. Enacted on July 12,1974, the CBA aimed to establish a new congressional budget process, create Committees on the Budget in each House of Congress, establish a Congressional Budget Office (CBO), and provide congressional control over the impoundment of funds by the executive branch.

Key Facts

  1. Purpose: The Act aimed to establish a new congressional budget process, create Committees on the Budget in each House of Congress, establish a Congressional Budget Office (CBO), and provide congressional control over the impoundment of funds by the executive branch.
  2. Impoundment Control: The Act included provisions to prevent the President and other government officials from unilaterally withholding or delaying the spending of funds that had been appropriated by Congress. It established procedures for the President to follow if they sought to delay or cancel funding provided by Congress.
  3. Congressional Budget Office: The Act created the Congressional Budget Office (CBO), an independent agency that provides nonpartisan budgetary and economic analysis to Congress. The CBO assists in the budget process by providing cost estimates for proposed legislation and conducting economic research.
  4. Budget Resolution: The Act established procedures for Congress to adopt a budget resolution, which sets fiscal policy for the Congress. The budget resolution sets limits on revenues and spending and can be enforced through procedural objections called points of order. It can also trigger the consideration of a budget reconciliation bill under expedited procedures.

Impoundment Control

One of the key provisions of the CBA was the establishment of impoundment control mechanisms. Prior to the CBA, the President had the authority to withhold or delay the spending of funds appropriated by Congress, a practice known as impoundment. The CBA sought to prevent the President and other government officials from unilaterally withholding or delaying the spending of funds that had been appropriated by Congress. It established procedures for the President to follow if they sought to delay or cancel funding provided by Congress.

Congressional Budget Office

The CBA also created the Congressional Budget Office (CBO), an independent agency that provides nonpartisan budgetary and economic analysis to Congress. The CBO assists in the budget process by providing cost estimates for proposed legislation and conducting economic research. It plays a crucial role in informing Congress about the budgetary and economic implications of legislative proposals and policies.

Budget Resolution

The CBA established procedures for Congress to adopt a budget resolution, which sets fiscal policy for the Congress. The budget resolution sets limits on revenues and spending and can be enforced through procedural objections called points of order. It also triggers the consideration of a budget reconciliation bill under expedited procedures. The budget resolution is a key tool for Congress to set overall spending and revenue levels and to ensure that the budget is balanced.

Conclusion

The Congressional Budget Act of 1974 was a significant piece of legislation that reshaped the budget process in the United States. It established new mechanisms for congressional control over the budget, including the impoundment of funds, the creation of the Congressional Budget Office, and the adoption of a budget resolution. These provisions have had a lasting impact on the budget process and have helped to strengthen the role of Congress in fiscal policy.

Sources:

  1. https://www.congress.gov/93/statute/STATUTE-88/STATUTE-88-Pg297.pdf
  2. https://democrats-budget.house.gov/resources/reports/impoundment-control-act-1974-what-it-why-does-it-matter
  3. https://en.wikipedia.org/wiki/Congressional_Budget_and_Impoundment_Control_Act_of_1974

FAQs

What was the purpose of the Congressional Budget Act of 1974?

The purpose of the Congressional Budget Act of 1974 was to establish a new congressional budget process, create Committees on the Budget in each House of Congress, establish a Congressional Budget Office (CBO), and provide congressional control over the impoundment of funds by the executive branch.

What is impoundment control?

Impoundment control refers to the mechanisms established by the Congressional Budget Act of 1974 to prevent the President and other government officials from unilaterally withholding or delaying the spending of funds that had been appropriated by Congress.

What is the Congressional Budget Office (CBO)?

The Congressional Budget Office (CBO) is an independent agency created by the Congressional Budget Act of 1974. It provides nonpartisan budgetary and economic analysis to Congress, including cost estimates for proposed legislation and economic research.

What is a budget resolution?

A budget resolution is a resolution adopted by Congress that sets fiscal policy for the Congress. It sets limits on revenues and spending and can be enforced through procedural objections called points of order. It also triggers the consideration of a budget reconciliation bill under expedited procedures.

How does the budget resolution process work?

The budget resolution process begins with the submission of the President’s budget to Congress. Congress then considers and adopts a budget resolution, which sets targets for spending and revenue levels. The budget resolution is used to guide the appropriations process and to enforce spending limits.

What is a budget reconciliation bill?

A budget reconciliation bill is a bill that is used to implement the budget resolution. It can include changes to spending, revenue, and debt limit levels. Budget reconciliation bills are subject to expedited procedures in Congress, which allow them to be passed with a simple majority vote in the Senate.

How has the Congressional Budget Act of 1974 impacted the budget process?

The Congressional Budget Act of 1974 has had a significant impact on the budget process. It has strengthened the role of Congress in fiscal policy and has made the budget process more transparent and accountable.

What are some criticisms of the Congressional Budget Act of 1974?

Some criticisms of the Congressional Budget Act of 1974 include that it has led to increased partisanship in the budget process and that it has not been effective in controlling the federal deficit.