The President’s Budget: An O’Neill and Associates Education/Refresher on the Federal Budget Process
As we continue to assess the Trump administration’s policy initiatives, there is growing anticipation surrounding President Trump’s first budget. As we approach this milestone, we thought it would be helpful to share this review of the federal budget process.
Every year the President of the United States submits a budget request to Congress that is drafted in close coordination with the Office of Management and Budget (OMB). The budget request outlines funding levels for all federal departments and independent agencies, including spending and revenue proposals as well as any new policies and initiatives with significant budget implications.
The Budget and Accounting Act of 1921 says that “the President submit the budget between the first Monday in January and the first Monday in February.” More recently, Presidents have traditionally sent a budget request to Congress the first week of February for the coming fiscal year, 2018 in this instance, which begins on October 1st. The budget submission is typically delayed in a new President’s first year in recognition of the complexities of transition. Before the inauguration, the transition team indicated that we might anticipate a draft proposal or “skinny budget” from President Trump in the first 100 days. However, recent reports suggest that the Trump administration may be preparing a full budget request for as early as mid-March to late spring. This timing is not really surprising as the President’s nominee for OMB Director, South Carolina Representative Mick Mulvaney’s was only approved by the full Senate on February 16th – the longest confirmation wait for an OMB director ever according to RollCall.
More information on the agenda and funding priorities of the Trump administration will likely be revealed when the President addresses a joint session of Congress on February 28th. President Trump’s speech will not be a formal State of the Union address. Newly inaugurated president’s often deliver a speech on their agenda and goals rather than an assessment on the state of the country. White House Press Secretary Sean Spicer said at a press briefing today that we can expect the President’s speech to include broad policy initiatives, focused on defining success, as well as look back at what he has accomplished the last month. Additionally the President will share some of his goals to work with Congress on healthcare, tax reform, and infrastructure. O’Neill and Associates’ federal lobbyists will be live tweeting the speech. You can follow along at #OAPolitics and a follow up analysis will be posted to our blog as well.
Once the President’s Budget request is finally released, it is referred to the House and Senate Budget Committees and to the Congressional Budget Office (CBO) for an analysis and scoring of the proposal to project the budgetary impact of policies. With the budget request and CBO budget report, the committees each submit a budget resolution in the House and Senate, respectfully. Budget resolutions have traditionally been submitted in early April, but we anticipate a later timeframe this year. The House and Senate each considers its own resolution before voting on and passing the resolution. Once passed, the House and Senate each names a handful of members to a joint conference committee to negotiate a conference report – a reconciliation of any differences between the House and Senate budget resolutions. The final joint budget resolution must be approved by both the House and Senate to be binding. Interestingly, the budget resolution is not a law and does not require the President’s signature. However, it is a guide for Congress in the appropriations process. In a future blog post, we will take a more in-depth look at the appropriations process and the role of Congress, the President and even the role clients can play with former House Appropriations Committee staffer, O’Neill and Associates Vice President AmyClaire Brusch.