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Authorization of Spending

Definition

The process by which Congress approves the spending of money for certain purposes.

Analogy

Imagine you're at home with your siblings while your parents are out. They've left you some money for pizza but they've specifically said it can only be used for that purpose - not for buying video games or candy. This is like authorization of spending; Congress has approved funds but only for specific uses.

Related terms

Appropriation Bill: Legislation that authorizes government agencies to spend money from the public treasury for specified purposes.

Discretionary Spending: Government spending implemented through an appropriations bill; it can be cut from budgets without changing any law.

Mandatory Spending: Government spending on certain programs mandated by law.

"Authorization of Spending" appears in:

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AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.