The Constitution gives Congress sweeping control over the federal budget

The House of Representatives controls the $7T federal budget

The House holds the exclusive "power of the purse" to initiate revenue bills, a provision in the US Constitution designed to divide power with the Senate and give states with larger populations greater influence over federal budgeting.

The Constitution grants Congress more powers than the president

Article I outlines detailed congressional powers—taxation, spending, war declarations, and lawmaking—while Article II gives the president limited, broadly defined authority. This design reflects the framers' intention to prevent executive overreach.

Explore the specific authorities granted to Congress: the 'enumerated powers'

The Constitution grants Congress a list of powers—including taxing, regulating interstate commerce, and declaring war—while powers not explicitly listed are reserved to the states or the people, defining the federal government's scope of authority.

The necessary and proper clause of the Constitution allows Congress flexibility in governing

The Constitution authorizes Congress to pass laws needed to carry out its enumerated powers, which, over time, have become one of the Constitution's most powerful sources of federal authority.

War-making authority is divided between Congress and the president in the Constitution

Article I grants Congress the power to declare war and fund the military, while Article II makes the president commander in chief. However, the Constitution does not clearly delineate where one authority ends and the other begins, creating a tension that has never been fully resolved.

The commerce clause gives the federal government authority to regulate interstate economic activity

This short constitutional provision has allowed Congress to regulate everything from wheat production to racial segregation, greatly expanding federal power by linking national authority to interstate economic activity.

Tax policy can have a direct impact on the national debt, with past presidents' changes to tax codes inflating the deficit.

The Budget and Accounting Act of 1921 created the modern federal budget

Before 1921, federal funding was fragmented and ad hoc. This article traces how inefficiency and postwar pressures led Congress to pass the Budget and Accounting Act, creating a standardized, centralized federal budgeting process.

The federal government has spent more money annually than it has collected every year since 2022.

Federal spending falls into 2 categories: mandatory and discretionary

Federal spending is split between mandatory programs, funded automatically by law, and discretionary programs, funded through annual appropriations. This video breaks down which major programs fall into each category and why the distinction matters.

Use this calculator to find out the programs and services your federal income taxes fund.

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Nearly half of the discretionary funding in the US is allocated to national defense.

The federal debt ceiling 101

The debt ceiling periodically takes center stage as Congress debates whether to increase or suspend this self-imposed limit on its borrowing authority. Learn the basics on this crucial feature of US fiscal policy with this Q&A.

The US and Denmark are the only two countries known to abide by a predetermined borrowing limit.

The debt ceiling is a legal cap on how much money the US government can borrow.

No institution wields more power in US finance than the Federal Reserve, the central bank of the US—but opinion polls indicate that most Americans don't know what it does.

Government shutdowns, 101

Roughly a quarter of the US federal government's spending must be approved annually through a set of 12 appropriations bills in Congress. When they aren't, a government shutdown ensues, where federal agencies are legally barred from spending any further money on nonessentials. This explainer covers the basics of government shutdowns and their impact on the broader culture.

The president's powers are defined in Article II of the US Constitution

Article II establishes the presidency, outlining powers to command the military, sign or veto legislation, appoint officials, and conduct diplomacy—many of which are intended to be checked by other branches of government.

States are constitutionally mandated to draw their own congressional districts

Under Article I, Section 4 of the US Constitution, state legislatures possess the authority to determine how congressional districts are drawn. However, Congress retains the power to alter these rules if it chooses to.

The federal deficit is the gap between what the US spends and what it collects.

The supremacy clause establishes federal law as the highest authority

The supremacy clause states that the United States Constitution and federal laws enacted under it supersede conflicting state laws, ensuring national authority prevails when federal and state governments disagree.

The federal budget process begins nearly a year before funds are spent

Creating the federal budget starts months in advance. This resource explains each stage, showing how the president proposes priorities, Congress reshapes and approves funding, and federal agencies implement the final budget.

The US has carried debt since 1791

After the Revolutionary War, the US owed $75M to nations like France. Debt builds when spending exceeds revenue, funding programs, wars, and economic recovery efforts. Most debt is domestic, like Social Security bonds, with foreign nations also holding a share.

A formal declaration of war automatically triggers hundreds of statutes granting the president sweeping domestic authority

Beyond authorizing military force abroad, a formal declaration activates a wide range of domestic powers, including authority over enemy property, trade restrictions, and emergency economic authority. It also waives the 60-day time limits under the War Powers Resolution.

The Federal Reserve is the most powerful financial institution in the US

The Fed controls the money supply, determines interest rates, and regulates the banking system. Established in 1913 after a volatile series of financial panics, the central bank has managed to retain its legitimacy despite broad critiques against its obscure and independent decision process.

Treasury bonds, notes, and bills are critical vehicles for the federal government to raise money for public expenses and manage the national debt.

The US debt ceiling is the threshold Congress sets for federal borrowing.

Police spending is one of the largest budget items for local governments

Local governments finance most of the costs for police in the US. Total state and local criminal justice spending—covering police, courts, and corrections—reaches hundreds of billions of dollars annually.

Individual income taxes are the federal government's primary revenue source, see a tracker that breaks down where the rest of the budget comes from

The US government historically makes nearly half of its total revenue last year from individual income taxes. But the US makes also makes money from a variety of other sources, including Medicare taxes and corporate income taxes. However, the federal government has run a deficit since 2001—reaching a peak of $3.13T in 2020.

Revenue from tariffs goes to the US Treasury's general fund.

McCulloch v. Maryland upheld implied powers and blocked states from taxing the federal government

In 1819, McCulloch v. Maryland confirmed that Congress may use implied powers under the necessary and proper clause and ruled that states cannot tax federal institutions, reaffirming the supremacy of the federal government within its constitutionally delegated powers.

Visualize government spending with USAFacts to see complex federal budget data as clear charts and summaries, and explore where the money goes as well as how revenue, deficits, and debt change over time.

Congress often uses stopgap bills to keep the government running

When lawmakers fail to pass a full budget, they rely on continuing resolutions to fund the government temporarily. This guide explains how CRs are enacted, how they function, and why they disrupt normal operations.

The 16th Amendment paved the way for capital gains taxes

Ratified in 1913, the 16th Amendment paved the way for a far-reaching federal income tax and supercharged the country’s coffers. Before then, the US depended on import tariffs and so-called consumption taxes to raise revenue.

The current federal budget, deficit, and debt, in charts

The US Treasury regularly publishes updated data on the federal budget, and this site hosts visualizations of that data. See reports on spending, revenues, deficits, and where the national debt stands.

Amending the Constitution requires broad support

The framers created a demanding amendment process. Proposed changes require two-thirds approval in both houses of Congress and ratification by three-fourths of the state legislatures, making sure that constitutional amendments reflect a broad national consensus rather than temporary political majorities.

Congressional committees quietly shape most legislation

This video explains how 20 congressional committees—standing, select, and conference—perform much of Congress's work, from drafting legislation and holding hearings to overseeing executive branch agencies.

Congress has the power to enact laws related to bankruptcy, thanks to the US Constitution

It has done just that since 1800. This legislation, which outlines the various types of bankruptcy filings, has evolved over time. The most recent iteration is the Bankruptcy Reform Act of 1978, which introduced Chapter 11 filings in an effort to make the process easier for businesses and individuals.

The federal government sent roughly $1.1T to state and local governments in 2024

Federal grants support a large portion of state and local budgets, funding Medicaid, infrastructure, education, and housing. In FY 2024, these transfers made up about 16% of total federal spending.

The 10th Amendment affirms that most undelegated powers remain with the states

Adopted to reassure skeptics of an overly powerful federal government, the amendment was meant to curb federal overreach and preserve state control over most everyday governance decisions.

New Deal programs still shape mandatory federal spending today

Many of the largest items in today's federal budget—especially mandatory programs—trace their origins to Franklin D. Roosevelt's New Deal. This podcast explores how those policies reshaped federal spending and government responsibility.

Congress has handled past crises through emergency lawmaking and institutional expansion

In a 2020 podcast from the National Constitution Center, historians and political scientists examine how Congress navigated past national crises—particularly the Civil War—and what those moments reveal about governing today.

At the 1787 Constitutional Convention, Madison changed the draft language from Congress's power to "make" war to "declare" war

The change was deliberate: "make" war seemed to leave the president unable to defend the country against sudden attack, while "declare" preserved that defensive authority. The distinction between starting a war and responding to one has been debated ever since.

Consumer spending accounts for 70% of America's gross domestic product.

A 1787 convention clash led to the creation of Congress’s two chambers

This article recounts debates on September 4, 1787, when delegates at the Constitutional Convention clashed over the balance of power between large and small states, driving the compromise that created the House and Senate.

An analysis of the National Science Foundation's historical budget and spending

The NSF accounted for 0.1% of all federal spending in FY2024, with $9.39B—just over twice its FY1991 spending—out of $6.78T overall. Almost 99% of these funds ($9.29B) went to general science and basic research, with the rest allocated to national defense.

Many local governments also struggle to rein in their spending.

The power and influence of the American presidency have expanded significantly over time—far beyond what the founders envisioned.

The Supreme Court has greatly expanded executive power in recent years

In Trump v. United States, the court ruled that a former president enjoys absolute immunity for "official acts" in his constitutional core powers. In Trump v. CASA, Inc., the court limited federal courts' ability to block executive enforcement through nationwide injunctions—decisions that shifted power toward the executive branch.

The powers of the judicial branch have expanded since the nation's founding

Initially, the Supreme Court was seen as the weakest branch, lacking "the power of the sword or the purse," as Alexander Hamilton noted in *Federalist No. 78*. This podcast explores the political conflicts and pivotal decisions that transformed the court into the powerful constitutional authority it is today.