Budget / Appropriations

FY 2011 Budget

Congress finalized the federal budget for the current fiscal year in April 2011.

Deficit Reduction - Super Committee of Congress

President Obama and Congressional leaders reached agreement on a $2 trillion deal to raise the federal borrowing limit and cut spending. The Budget Control Act of 2011, signed by the President on August 2,  raises the debt ceiling in two steps, each time allowing Congress to vote to disapprove the increases, (but those votes would be subject to presidential vetoes that are unlikely to be overridden). Discretionary spending will be cut immediately by $900 billion over ten years, and an additional $1.2 trillion to $1.5 trillion in deficit reduction will be determined later this year. The Budget Control Act tasks a 12-member bi-partisan, bi-cameral “Super Committee” of Congress, officially titled the Joint Select Committee on Deficit Reduction, with determining the details of the additional $1.2 trillion to $1.5 trillion in spending cuts that the legislation requires. President Obama is expected to release proposals for how the committee can meet these cuts.

FY 2012 Budget Proposals

The deal to raise the debt limit, enacted as the Budget Control Act, sets spending levels for fiscal year 2012 and beyond, and establishes a Super Committee of Congress to resolve spending and tax issues, as well as to consider entitlement reforms. The federal budget for fiscal year 2012, and related spending decisions and tax policy, have been kept in limbo awaiting decisions from the President and Congress.

Federal Budget and Appropriations Process

The federal budget process begins each year with the release of the President’s blueprint in early February. The House and Senate consider these Executive Branch recommendations as they adopt a budget resolution that sets spending and revenue targets for the year. Once the spending targets are established, the House and Senate Appropriations Committees each process 12 separate bills that are supposed to be completed before the start of the new fiscal year on October 1.

Deficit Reduction Commission

President Obama signed an executive order on February 18, 2010 creating the National Commission on Fiscal Responsibility and Reform, charged with developing recommendations that would significantly reduce the federal budget deficit by 2015. The panel had the authority to make recommendations dealing with any part of the tax and spending provisions that make up the federal budget. These recommendations could entail policies regarding tax-exemptions, giving incentives, and spending for programs in which nonprofit organizations participate. The commission submitted its report to Congress but failed to get the support of 14 of the 18 commissioners needed to require congressional action.

Key Appropriations Issues

The National Council of Nonprofits tracks appropriations for key programs that assist nonprofit organizations in serving individuals and communities across the country.