Taxing and spending

The taxing power raises national revenue, while the spending power permits Congress to fund programs serving the general welfare. Spending may reach objectives beyond direct federal regulation by offering funds on conditions, but those conditions must remain constitutionally permissible and cannot become a disguised unlimited police power.

The Appropriations Clause makes enacted legislative authority necessary before money is drawn from the Treasury. An authorization can create a program or set a maximum, yet an agency may still need an appropriation before obligating funds. Conversely, appropriations language can limit how available money is used.

Follow three separate decisions: how revenue is raised, what program is authorized, and what funding is legally provided. The president proposes and executes within law; Congress legislates taxes and appropriations through bicameralism and presentment. Neither a committee plan nor a presidential budget alone moves Treasury funds.

Video lesson: Congressional Decisions: Crash Course Government and Politics #10