OMB Passback Decisions in the United States

OMB Performs Review and Makes Passback Decisions in the Federal Budget Process

OMB Passback Decisions in the congressional and executive budget processes (GAO source): OMB staff representatives conduct the fall review. OMB has informal discussions with agencies about their budget proposals in light of presidential priorities, program performance, and any budget constraints. OMB examiners prepare issues for the Director’s review. The Director briefs the President and senior advisors on proposed budget policies and recommends a complete set of budget proposals after a review of all agency requests. The President considers the estimates and makes his decisions on broad policies. In late November, OMB passes back budget decisions to the agencies on their budget requests, the so-called passback. These decisions may involve, among other things, funding levels, program policy changes, and personnel ceilings. The agencies may appeal decisions with which they disagree. If OMB and an agency cannot reach agreement, the issue may be taken to the President.

Final budget decisions will also reflect proposals for management and program-delivery improvements resulting from agency and OMB reviews during the executive budget formulation process. OMB not only assists in making individual budget decisions, it also tracks the result of these decisions. OMB calculates the effect of budget decisions on receipts, budget authority, and outlays. Once final decisions on the budget requests are reached, agencies revise their budget submissions to conform to these decisions. These final estimates are transmitted to Congress in the President’s budget request.

Guide to U.S. Federal Executive Budget Formulation

• Executive Budget Formulation
• Next Budget Request
• Initial Budget Request Materials
• OMB Passback Decisions
• President Budget Request
• Mid-Session Review Document

Guide to Stages of the Federal Budgeting Process

• Federal Budget Execution
• Federal Budget Development
• Executive Budget Formulation
• Next Budget Request
• Initial Budget Request Materials
• OMB Passback Decisions
• President Budget Request
• Mid-Session Review Document
• Congressional Budget Process
• Budget Committees
• Estimates Reports
• Budget Resolution
• Fiscal Legislation
• Federal Budget Control
• Impoundment

Resources

See Also

• Federal Appropriations
• Entries about the United States Budget Process in the Encyclopedia (including OMB Passback Decisions)
• Public Debt

Further Reading

• Legislatures and the budget process: the myth of fiscal control

  (J Wehner, 2010)

• Reconcilable Differences?: Congress, the Budget Process, and the Deficit (JB Gilmour, 1990)
• Fiscal institutions and fiscal performance

  (JM Poterba, J von Hagen, 2008)