The Budget Committee is one of the Senate’s newer committees, created by the Congressional Budget and Impoundment Control Act of 1974. While the Committee has seen its duties and functions change over the years due to the enactment of new laws and changes to Senate budget responsibilities, the Committee remains responsible for drafting budget plans for Congress and for monitoring and enforcing rules surrounding spending, revenue, and the federal budget.
Why was the Budget Committee created?
Article I of the Constitution of the United States assigns to Congress key budgetary functions, often referred to collectively as the “power of the purse.” But the Constitution did not specifically detail the procedures Congress should follow in exercising this role, and it delegates to the House of Representatives and the Senate the power for each to develop its own rules and processes. As a result, the approach to budgeting was decentralized and fragmented for most of the first 200 years of Congressional history.
In the period leading up to 1974, Congress made several attempts to reform its ad hoc budgeting processes. These included requiring an overall fiscal plan, combining all appropriations into one bill, and establishing statutory spending limits. All of these efforts were unsuccessful. A debt limit increase bill enacted in 1972 (P.L. 92-599) established a Congressional Joint Study Committee on Budget Control. The final report of that Committee, issued in 1973, recommended the establishment of Budget Committees in the House and Senate.
At the same time, Congress disagreed with the Executive Branch’s use of its impoundment authority, in which it withheld previously enacted spending.
So, Congress passed the 1974 Act, which established the House and Senate Budget Committees with the mandate of publicly presenting and adopting a Congressional budget to manage the nation’s finances and establish a concrete fiscal vision. In addition, the Act made changes to the impoundment process.
What does the Budget Committee do?
The Budget Committee’s principal responsibility is to develop a concurrent resolution on the budget to serve as the framework for congressional action on spending, revenue, and debt-limit legislation. Each chamber introduces its own resolution, which, when jointly agreed to by the House and the Senate, becomes the so called “budget resolution.” The adoption of the resolution does not result in a new law of the United States, as the president does not sign the resolution.
The Senate Budget Committee is also responsible for the enforcement of this concurrent resolution and associated budget laws. Budget enforcement is accomplished by informing senators when budget “points of order” apply because of violations to the budget, and by working with other committees during the crafting of legislation to address potential violations. The committee also tracks the appropriations process throughout the year to make sure that spending levels in appropriations bills conform to the levels set forth in the budget resolution.
Through the budget resolution, the Committee can also initiate and enforce the budget reconciliation process, a piece of legislation that is written to bring about specific identified fiscal goals. A reconciliation bill, if passed and signed by the president, carries with it the full force of law. The Committee also holds hearings on the economy, oversight hearings to monitor the performance of government agencies, and hearings to consider nominations for the president’s Office of Management and Budget.
To learn more about the Budget Committee’s role and responsibilities, please see thecomprehensive historythat was produced during the 109th Congress.
FAQs
So, Congress passed the 1974 Act, which established the House and Senate Budget Committees with the mandate of publicly presenting and adopting a Congressional budget to manage the nation's finances and establish a concrete fiscal vision. In addition, the Act made changes to the impoundment process.
What is the history of the House committee on the budget? ›
The committee originated with the Congressional Budget and Impoundment Control Act of 1974 (PL 93-344), which permitted Congress to develop an independent means to analyze the Presidential budget, reconcile it with congressional plans, and develop a fiscal policy of its own.
What is the main purpose of committees in the Senate choose 1 answer choose 1 answer? ›
Through investigations and hearings, committees gather information on national and international problems within their jurisdiction in order to draft, consider, and recommend legislation to the full membership of the Senate.
What is the main responsibility of the Senate committee on the budget? ›
It is responsible for drafting Congress's annual budget plan and monitoring action on the budget for the Federal Government. The committee has jurisdiction over the Congressional Budget Office.
What is the main purpose of the budget committee? ›
The Budget Committee is responsible for developing the annual budget resolution. The budget resolution is a mechanism for setting forth aggregate levels of spending, revenue, the deficit or surplus, and public debt.
What is the history of the Senate Finance committee? ›
First created on December 11, 1815, as a select committee and known as the Committee on Finance and an [sic] Uniform National Currency, it was formed to alleviate economic issues arising from the War of 1812. On December 10, 1816, the Senate officially created the Committee on Finance as a standing committee.
What is the history of House committees? ›
House committees
The first House committee was appointed on April 2, 1789, to "prepare and report such standing rules and orders of proceeding" as well as the duties of a Sergeant-at-Arms to enforce those rules. Other committees were created as needed, on a temporary basis, to review specific issues for the full House.
Which committee in the House focus on budgets money and taxes? ›
House Budget Committee | Congress.gov | Library of Congress.
Which committee in both the House and the Senate is most important for passing a budget? ›
A Budget Conference Committee is then appointed to work out differences between the Senate and Assembly versions of the bill. Upon completion of action by the Conference Committee and a simple majority vote, this conference version is then sent to the two houses for approval.
Who is the leader of the Senate called? ›
The United States Constitution designates the vice president of the United States as president of the Senate. The Constitution also calls for a president pro tempore, to serve as the presiding officer when the president of the Senate (the vice president) is absent.
Republicans won 222 seats to 213 for Democrats, though one elected Democrat has since died, leaving Democrats with 212 seats. Democrats still control the Senate — with 51 votes instead of last term's 50 plus the tie-breaking Vice President Harris.
What is the difference between a senator and a congressman? ›
Senators represent their entire states, but members of the House represent individual districts. The number of districts in each state is determined by a state's population. Each state has a minimum of one representative in Congress. The House and Senate have evolved into very different bodies.
Who is the head of the Senate budget committee? ›
Sheldon Whitehouse
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What is the role of the Senate in the budget process? ›
The House and Senate create their own budget resolutions, which must be negotiated and merged. Both houses must pass a single version of each funding bill. Congress sends the approved funding bills to the president to sign or veto.
Who controls the budget in Congress? ›
In addition, the law created new legislative institutions to implement the new Congressional budget process: the House and Senate Budget Committees to oversee execution of the budget process and the Congressional Budget Office to provide the Budget Committees and the Congress with objective, impartial information about ...
What is the history of the Congressional Budget Office? ›
CBO was established under the Congressional Budget Act of 1974 to provide objective, nonpartisan information to support the federal budget process. CBO's mission is to help the Congress make effective budget and economic policy.
Who is behind the Committee for a Responsible Federal Budget? ›
A large part of the board is composed of former directors of major budget-related government offices including the Congressional Budget Office (CBO), the Office of Management and Budget (OMB), the House and Senate Budget Committees, and the Federal Reserve Board of Governors.
