Changes

Various types of backdoor spending authority include authority to enter into [[contract]]s; to incur in[[debt]]edness; to make payments (including loans, grants and [[entitlement]]s) to persons or [[government]]s who meet requirements established by [[law]]; to allow United States government executive departments and agencies to forgo collection of proprietary offsetting receipts<ref>collection of some taxes, fees and debts justly due.</ref>; and to make any other payments (including loans, grants, and payments from [[revolving fund]]s).

Various types of backdoor spending authority include authority to enter into [[contract]]s; to incur in[[debt]]edness; to make payments (including loans, grants and [[entitlement]]s) to persons or [[government]]s who meet requirements established by [[law]]; to allow United States government executive departments and agencies to forgo collection of proprietary offsetting receipts<ref>collection of some taxes, fees and debts justly due.</ref>; and to make any other payments (including loans, grants, and payments from [[revolving fund]]s).

From the perspective of the appropriations committees, funding by these forms of spending authority slips away from their control through legislative back doors. However, the Congressional Budget Act of 1974 gave those committees some control over new borrowing and contract authority.  

From the perspective of the appropriations committees, funding by these forms of spending authority slips away from their control through legislative back doors. The Congressional Budget Act of 1974 allowed older forms of backdoor spending to be grandfathered in but attempted to give the appropriations committees some control over new [[Direct_spending#New_spending|new spending]], or new borrowing and contract authority).

==Origins and issues==

==Origins and issues==

*One type of backdoor is contract authority which permits an agency to obligate funds in advance of appropriations. The matter comes before the appropriations committees only when money is needed to liquidate the obligation, too late for them to exercise any meaningful control.

*One type of backdoor is contract authority which permits an agency to obligate funds in advance of appropriations. The matter comes before the appropriations committees only when money is needed to liquidate the obligation, too late for them to exercise any meaningful control.

*Another backdoor strategy is to authorize agencies to borrow funds from the Treasury or from the public. [[Borrowing authority]]<ref>"Borrowing authority", also known as [http://www.gao.gov/assets/130/120223.pdf "authority to spend debt receipts"], pg.46; Report to the House Commitee on the Budget by the Comptroller General of the United States. ''Revolving Funds: Full Disclosure Needed For Better Congressional Control''. August 30, 1978. http://www.gao.gov </ref> outside the appropriations process has been authorized since this backdoor was opened in 1932 with creation of the [[Reconstruction Finance Corporation]].

*Another backdoor strategy is to authorize agencies to borrow funds from the Treasury or from the public. [[Borrowing authority]]<ref>"Borrowing authority", also known as [http://www.gao.gov/assets/130/120223.pdf "authority to spend debt receipts"], pg.46; Report to the House Committee on the Budget by the Comptroller General of the United States. ''Revolving Funds: Full Disclosure Needed For Better Congressional Control''. August 30, 1978. http://www.gao.gov </ref> outside the appropriations process has been authorized since this backdoor was opened in 1932 with creation of the [[Reconstruction Finance Corporation]].

*The third and most prevalent form of backdoor is a mandatory entitlement of specified payments to eligible beneficiaries. Most entitlements are open-ended: their cost depends on the varying number of claimants and amounts allowable to each, rather than on current legislative decisions.<ref>See [[Discretionary spending]] The political philosopher and journalist [[George Will]]  contends all government spending is discretionary, with the exception of debt service. [http://www.econtalk.org/archives/2011/02/george_will_on.html Econtalk], George Will, Feb-28-2011.</ref> Most entitlements are also in the form of permanent appropriations that bypass the appropriations committees altogether. Even when the entitlements go through the regular appropriations process (as is the case with public assistance and veterans' benefits) the appropriations committees have no real say over the amounts that are to be spent. <ref>[http://people.brandeis.edu/~woll/schickbudget.pdf The Battle of the Budget], Allen Schick, ''Proceedings of the Academy of Political Science'', Vol. 32, No. 1, Congress against the President, (1975), pp. 51-70. Published by: The Academy of Political. JSTOR.</ref>

*The third and most prevalent form of backdoor is a mandatory entitlement of specified payments to eligible beneficiaries. Most entitlements are open-ended: their cost depends on the varying number of claimants and amounts allowable to each, rather than on current legislative decisions.<ref>See [[Discretionary spending]] The political philosopher and journalist [[George Will]]  contends all government spending is discretionary, with the exception of debt service. [http://www.econtalk.org/archives/2011/02/george_will_on.html Econtalk], George Will, Feb-28-2011.</ref> Most entitlements are also in the form of permanent appropriations that bypass the appropriations committees altogether. Even when the entitlements go through the regular appropriations process (as is the case with public assistance and veterans' benefits) the appropriations committees have no real say over the amounts that are to be spent. <ref>[http://people.brandeis.edu/~woll/schickbudget.pdf The Battle of the Budget], Allen Schick, ''Proceedings of the Academy of Political Science'', Vol. 32, No. 1, Congress against the President, (1975), pp. 51-70. Published by: The Academy of Political. JSTOR.</ref>