Authorization
Authorization is, in government, a statutory provision that obligates funding for a program or agency. An authorization may be effective for one year, a fixed number of years, or an indefinite period (often termed as "authorized until expended"). An authorization may be for a definite amount of money or for "such sums as may be necessary" (subject to a ceiling).
The formal Federal spending process consists of two sequential steps: authorization and then appropriation.[1] At the Federal level, the most notable authorization bill is the annual National Defense Authorization Act (NDAA), considered a "must pass" bill, which determines which programs will be funded for the Department of War.
At state and local levels, authorization and appropriation are often combined at the beginning of the fiscal year as passage of the annual budget also serves as the appropriation act, though during the year additional authorizations (and appropriations) are commonly made (such as if a new fire station is opened, the government will authorize and appropriate funds to operate it).
