Which Committees Have the Power to Cut Budgets?


Quick Answer

The House of Representatives Committee on the Budget has the power to cut national budgets and make recommendations for changes in conjunction with its counterpart in the Senate. The committee's responsibility is to create a balance between Congressional appropriations and the president's budgetary spending plan for the year.

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Full Answer

The two committees, one in each branch of Congress, were formed as a consequence of the Congressional Budget and Impoundment Control Act of 1974. The House members of the committee are rotating, with a new head of the committee appointed with every new Congress. The members of the Senate committee can maintain permanent seats. The combined Committee on the Budget analyzes the president's budget and provides a budget resolution by April 15th of each year. The combined committee is required to follow additional regulations imposed by the Gramm-Rudman-Hollings Acts of 1985 and 1987 that impose gradual reduction of the federal deficit, as well as by the Budget Enforcement Act of 1990 that put a cap on all spending, both entitlement and discretionary. As a part of this, the committee keeps track of all revenue for the federal government and is required to reduce spending to compensate for any reductions in yearly revenue.

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