Budget Authority
Budget authority is legal permission for a federal agency to incur financial obligations that will result in government spending. Congress usually provides budget authority through appropriations laws, which specify purposes, amounts, and time limits. Budget authority is distinct from actual outlays, which occur when the government pays money.
Budget authority is legal permission for a federal agency to incur financial obligations that will result in government spending. Congress usually provides budget authority through appropriations laws, which specify purposes, amounts, and time limits. Budget authority is distinct from actual outlays, which occur when the government pays money.
Example: Public Law 118-42 provided budget authority for federal agencies and programs for fiscal year 2024.
Common misconception: Budget authority means the government has already paid the money. It authorizes obligations; actual spending may occur later.
Sources: https://www.gao.gov/legal/appropriations-law; https://www.congress.gov/118/plaws/publ42/PLAW-118publ42.pdf