What is appropriation in the federal budget?

• A. Funds set aside by Congress for a specific purpose.
• B. Funds that the President can borrow from the treasury.
• C. Money saved for future deficits.
• D. Revenue collected through taxes only.

Answer: (A)

Appropriation is the legal authority Congress gives to spend money from the Treasury for a specific purpose during a given fiscal year. After a program is authorized, Congress must appropriate funds to enable the actual spending; without this appropriation, money can’t be obligated by agencies. That’s why the description “funds set aside by Congress for a specific purpose” is the best fit—it captures the act of allocating money to a particular use.

Think of it as the step that turns authorization into action: authorization says a program can exist, appropriation says Congress provides the money to run it. Borrowing, saving for deficits, or revenue from taxes aren’t what appropriation does. Borrowing is about borrowing authority, saving is about reserves, and tax revenue is about how money comes in—not how it’s authorized to be spent.