Established during an era of unprecedented institutional reform in Congress, the Committee on the Budget’s function derives from the constitutional mandate that fixes control of the nation’s purse in the U.S. Although Congress has always possessed the legal authority to exercise power over federal appropriations, a formal institutional mechanism to manage taxes and spending did not exist until 197
4. Three developments precipitated the need for a formal mechanism: increasing conflicts between Congress and the President over the federal budget; the challenge of managing long-term programs such as Social Security and Medicare; and budget deficits in the latter 20th century. The committee originated in 1974 with the Congressional Budget and Impoundment Control Act of 1974 (PL 93-344), which permitted Congress to develop an independent means to analyze the Presidential budget, reconcile it with congressional plans, and develop a fiscal policy of its own. The act established permanent standing budget committees in both houses of Congress, as well as a Congressional Budget Office to provide Congress with independent, nonpartisan analyses. Unlike its Senate counterpart, the House Budget Committee has a larger membership (36 in the House compared to 23 in the Senate); ratios are determined at the beginning of every Congress based on party strength. The committee handles broad questions about federal spending and taxation and ensures that the House follows the 1974 law. Learn more about the Budget Committee → http://budget.house.gov/about/
