What role does Congress play in funding the government?

• A. It sets monetary policy through the Federal Reserve
• B. It passes appropriations and authorizes government spending; the President cannot spend funds without Congress.
• C. It enforces laws through agencies
• D. It negotiates treaties with foreign nations

Answer: (B)

The essential idea is Congress has the power of the purse. All government spending must be authorized by law and funded through appropriations acts that Congress passes. This means Congress sets the overall spending framework and then approves specific appropriations for each department, program, and agency. The President can propose budgets and administer programs, but he or she cannot spend money without an appropriation authority approved by Congress. If Congress hasn’t enacted full appropriations, it can pass a continuing resolution to fund the government at current levels for a set period, preventing a shutdown while negotiations continue.

This setup contrasts with the other functions in government. Monetary policy, such as setting interest rates and controlling money supply, is conducted by the Federal Reserve, not by Congress. Enforcement of laws through agencies is a function of the executive branch, which implements and enforces laws that Congress creates. Negotiating treaties with foreign nations is primarily a presidential power, with Senate involvement for consent, not a legislative funding role for Congress. The funding process thus centralizes budgetary authority in Congress, requiring its approval for any spending.