Every industry has its own lingo, processes, and rules that can be dizzying at times. The federal budget is no different. Years can go by without hearing words like “reconciliation,” ”Byrd Rule,” and “impoundment,” when all of a sudden, they are the talk of the town. Even those who have spent years working in this field need the occasional reminder about what certain terms mean. How is a breach of the debt limit different from a government shutdown? What’s the difference between impoundments and rescissions? What is the reconciliation process used for?
This Special Analysis Q&A is intended to serve as a guide to basic concepts, terms, and processes in the federal budget world, with a focus on state grant programs. Most information covered does not change over time and will remain relevant and accurate. States may find it useful for training new employees, and FFIS readers may use it as an aid for tracking the federal budget process.