The term refers to the act of Congress designating specific amounts of money for particular purposes or programs within the federal budget. It is a crucial step in the budgetary process, following authorization, wherein Congress decides how much funding each authorized program will receive. For example, Congress might authorize funding for education programs; the actual allocation of dollars to specific initiatives like Title I grants or special education funding occurs during this process.
This process holds significant power, directly influencing the scope and effectiveness of government activities. The level of funding allocated to a program can determine its ability to meet its objectives and impact its constituents. Historically, debates surrounding these decisions have reflected differing political priorities and philosophies regarding the role and size of government. Changes in these allocations can indicate shifts in national priorities or reflect evolving economic conditions.