Federal Budget Glossary

A plain-English guide to federal budget terminology. Terms are defined as they're used in practice, not as lawyers would write them, mainly because I don't have a law degree.

The Big Three

Appropriation

Congress's legal authority to spend money. Without an appropriation, agencies can't obligate funds. It's the starting point for all federal spending.

Obligation

A legally binding commitment to pay. When an agency signs a contract, hires an employee, or awards a grant, that's an obligation. The money is promised but hasn't left the Treasury yet.

Outlay

Actual cash out the door. When Treasury issues a payment, that's an outlay. This is the number that matters for deficit calculations.

Documents

SF-133 (Report on Budget Execution and Budgetary Resources)

The federal government's budget execution report. Shows what resources an agency had (Section 1), what they committed (Section 2), how unpaid obligations changed (Section 3), and net outlays (Section 4). Published monthly by Treasury.

SF-132 (Apportionment and Reapportionment Schedule)

OMB's spending plan for each account. Shows how much an agency can spend by quarter (Category A) or by purpose (Category B). The legal speed limit on spending.

Continuing Resolution (CR)

A temporary appropriations bill that keeps the government running when Congress hasn't passed full-year funding. Usually says "spend at last year's levels" with specific exceptions.

Account Identifiers

TAFS (Treasury Account Fund Symbol)

The unique identifier for every federal account. Format: XXX-XXXX (agency-account) plus period of availability. Example: 069-1134 /25 = DOT Capital Investment Grants, FY2025 money.

TAS (Treasury Account Symbol)

An account in the Treasury. A TAFS without a period of availability. Example: 069-1134 = DOT Capital Investment Grants.

CGAC (Common Government-wide Accounting Classification)

The 3-digit agency code. DOT is 069, HUD is 086, Treasury is 020.

Spending Controls

Apportionment

OMB's quarterly spending plan. Divides an appropriation into amounts available by time period (Category A), by purpose (Category B), or future fiscal year (Category C). Violating an apportionment is an Antideficiency Act violation.

Category A

Apportionment by time period—typically quarterly. "You can spend $100M in Q1, $100M in Q2..."

Category B

Apportionment by purpose or project. "You can spend $50M on grants, $30M on contracts..." Gives OMB program-level control.

Category C

Amounts withheld from obligation, but held for a future fiscal year. When OMB doesn't want an agency to reserve some appropriated funds in a multi-year or no-year account for the future.

Antideficiency Act (ADA)

The law that makes it illegal to spend more than Congress appropriated or more than OMB apportioned. Violations require reporting to Congress and the President.

Time Periods

Fiscal Year (FY)

October 1 through September 30. FY2025 runs from October 1, 2024 to September 30, 2025.

Period of Availability

How long an agency has to obligate funds. One-year money must be obligated within the fiscal year. Multi-year money (e.g., "25/27") can be obligated over multiple years. No-year money ("/X") has no expiration.

Single-Year (One-Year) Appropriation

Must be obligated within one fiscal year. Most salaries and expenses accounts. If not obligated by September 30, it expires.

Multi-Year Appropriation

Can be obligated over multiple fiscal years. Common for construction and procurement. Format: "25/27" means available FY2025-2027.

No-Year Appropriation

Available until expended. Format: "/X". Common for trust funds, long-term capital spending and disaster relief. The money never expires.

Expired Account

An account past its period of availability but within the 5-year cancellation window. Can still outlay (pay bills) but can't take new obligations.

Balances

Budgetary Resources

Total resources available to an agency: new appropriations + unobligated carryover + spending authority + recoveries. SF-133 Section 1.

Budget Authority

The authority to incur obligations. Comes from appropriations, borrowing authority, contract authority, or spending authority from offsetting collections. Budget authority is what Congress gives; obligations are what agencies do with it. Line 1900 on the SF-133 shows total budget authority for an account.

Unobligated Balance

Appropriated funds not yet committed. Shows up on line 2490 of the SF-133. Money still available to spend.

Obligated Balance

Funds committed but not yet paid out. The backlog of unpaid bills. SF-133 line 3200.

Unpaid Obligations

Obligations that haven't become outlays yet. A subset of obligated balance (doesn't include uncollected payments owed to the account).

Carryover

Unobligated balance brought forward from a prior year. Multi-year and no-year accounts accumulate carryover; single-year accounts don't.

Recoveries

Obligations that were cancelled—a contract came in under budget, or a grantee returned funds. Shows as negative in Section 3, positive (as a resource) in Section 1.

Spending Authority

Spending Authority from Offsetting Collections

Budget authority that comes from fees, reimbursements, or other collections rather than appropriations. TSA PreCheck fees are a classic example.

Offsetting Collections

Money an agency collects that offsets their gross outlays. Reimbursements from other agencies, user fees, loan repayments. Shows as negative on line 4030-4040.

Reimbursable

Work done for another agency, paid from their appropriation. The performing agency's outlays are offset by the collection.

Gross Outlay

Total cash disbursed, before subtracting collections.

Net Outlay

Gross outlay minus offsetting collections. This is what matters for the deficit.

Congressional Actions

Rescission

Congress cancels previously appropriated funds. The money goes away—can't be obligated, can't be outlayed.

Deferral

Executive branch temporarily withholds funds from obligation. Must be reported to Congress. Can't extend past the fiscal year.

Impoundment

Executive branch refusing to spend appropriated funds. Largely prohibited by the Impoundment Control Act of 1974 (except for deferrals following proper procedures).

Sequestration

Automatic, across-the-board spending cuts triggered by budget law. Reduces budgetary resources by a fixed percentage.

Transfer

Moving budget authority from one account to another. Requires statutory authority. Shows as negative in the source account, positive in the receiving account.

Institutions

OMB (Office of Management and Budget)

Executive branch agency that writes apportionments, reviews budget requests, and enforces spending limits. Reports to the President.

Treasury

Disburses payments, maintains the government's accounts, through SF-133 data. The checkbook.

Congress

Appropriates funds through annual appropriations bills. Has the "power of the purse" under Article I.

GAO (Government Accountability Office)

Congressional watchdog. Audits agencies, investigates spending, rules on appropriations law questions.

Shutdown & Lapse

Government Shutdown

What happens when appropriations lapse and agencies can't legally spend money. "Nonessential" functions stop; "essential" functions continue without pay.

Lapse in Appropriations

When an appropriation expires (either at fiscal year end for annual appropriations, or when a CR runs out). Triggers shutdown procedures unless new funding is enacted.

Discretionary vs. Mandatory

Discretionary Spending

Spending that Congress controls through annual appropriations. Defense, transportation, housing, most agency operations. Congress sets the amount each year; agencies can only spend what's appropriated.

Mandatory Spending

Spending controlled by eligibility rules in permanent law, not annual appropriations. Social Security, Medicare, Medicaid, SNAP. If you qualify, you get the benefit—Congress doesn't vote on the amount each year.

Less Common Terms

Allotment

Agency-level subdivision of an apportionment. OMB apportions to the agency; the agency allots to its sub-components.

Disbursement

Same as outlay. The actual payment.

Entitlement

Mandatory spending where eligibility is set by law. Social Security, Medicare, Medicaid. Spending is driven by how many people qualify, not by annual appropriations.

Quick Reference: Document Sections

SF-133 Sections

SF-132 Categories

This glossary is based on content from the BlazingStar Analytics blog. For detailed explanations, see our How to Read an SF-133 and How to Read an Apportionment series.