How Does U.S. Federal Budget Process 101 Work?

The U. S. Federal Budget Process is like a big group of friends deciding how to spend their allowance for the whole year.

The President starts by saying, “Hey everyone! I think we should spend more on toys and less on snacks this year.” This is called the budget proposal, it’s like a wish list for what the government wants to do.

Then, Congress, which is like a group of kids who help decide how to use the allowance, gets together. They look at the President's list and say, “We like some of these ideas, but we want to change a few things.” This part is called budget negotiations, it’s like when you and your friend agree on what game to play.

Once everyone agrees on how much money should go where, the lawmakers write down the final plan and make it official. That becomes the federal budget, which is like the rulebook for spending money all year long.

Sometimes, there are budget fights, these happen when friends can’t agree on what to spend their allowance on, so they have to keep talking until they reach a deal!

The whole process happens every year, just like how you and your friend decide your allowance plan each time.