May 09, 2025
BUDGET & TAXES

The Changing Landscape: Impacts of Federal Action on Massachusetts

Part 2 : Federal Budget Process

The federal government spends more than $6 trillion each year through its annual budget. The federal budget process shares some similarities with the state, but it also differs in many ways.

This resource provides a basic outline of that process and how it might affect Massachusetts.
Important Basics:

  • Mandatory spending does not require an annual appropriation, though program changes can be made in statute.
    • Mandatory spending (including interest) accounts for 70-75% of all federal budget spending.
  • Discretionary spending is theoretically appropriated through 12 separate bills, organized by subject area.
    • However, continuing resolutions are often used in place of or in addition to subject specific appropriations bills.
  • Like in Massachusetts, the federal budget process begins with budget recommendations from the Executive branch.