Unit Four:
The Legislative Branch
Section 1:
Section 2:
Section 3:
Section 4:
Section 5:
Section 6:
Section 7:
Section 8:
Section 9:
Section 10:
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The Legislative Branch Overview
The House of Representatives
The Senate
Congressional Committees and Agencies
Congressional Powers
Congressional Oversight
How a Bill Becomes a Law
Influencing Congress
Taxes and Spending
Social and Domestic Policy
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Section 1: The Legislative Branch
■How does “apportionment of membership” in the House provide representation to local voters?
■What are the key common characteristics of members of Congress?
The Constitution emphasized the importance of the lawmaking branch by describing Congress in Article I. As
James Madison said, Congress is “the First Branch of this Government.” The United States Congress is a
bicameral legislature, meaning that it is made up of two houses, in this case, the Senate and the House of
Representatives.
Congressional Sessions
Each term of Congress starts on January 3 of odd-numbered years and lasts for two years. For example, the 111th
Congress began its term in January 2009 and the 112th Congress began in January 2011. Each term of Congress is
divided into two sessions, or meetings. A session lasts one year and includes breaks for holidays and vacations.
Congress remains in session until its members vote to adjourn. Neither the House nor the Senate may adjourn for
more than three days without the approval of the other house. Also, if Congress is adjourned, the president may
call it back for a special session if necessary.
Membership of the House
With its 435 members, the House of Representatives is the larger body of Congress. The Constitution does not
set the number of representatives in the House. It simply states that the number of House seats must be
apportioned, or divided, among the states on the basis of population. Each state is entitled to at least one seat in
the House, no matter how small its population.
Qualifications
The Constitution sets the qualifications for election to the House of Representatives. Representatives must be at
least 25 years old, be citizens of the United States for at least 7 years, and be legal residents of the state that elects
them. Traditionally, representatives also live in the district they represent.
Term of Office
Members of the House of Representatives are elected for two-year terms. Elections are held in November of evennumbered years. Representatives begin their term of office on January 3 following the November election. This
means that every two years, all 435 members of the House must run for reelection. It also means that the
House reorganizes itself every two years. Because more than 90 percent of all representatives are reelected,
however, there is great continuity in the House. If a representative dies or resigns in the first session of Congress,
the state must hold a special election to fill that vacancy. Procedures for vacancies that occur during the second
session vary from state to state.
Representation and Reapportionment
In order to assign representation according to population, the Census Bureau takes a national census, or
population count, every 10 years. The first census was taken in 1790, and each state was apportioned its
representatives. The population of each state determines the new number of representatives to which each is
entitled—a process called reapportionment. States with slow population growth or a population decrease may
lose representatives (Pennsylvania went from 19 to 18 after the 2010 census), while states with more rapid
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population growth may gain representatives. Originally the House had only 64 members. Over the years, as the
population of the nation grew, the number of representatives increased. By 1911 the House had 435 members.
After the debate sparked by the 1920 census, and concern about the increasing size of the House, Congress passed
the Reapportionment Act of 1929 limiting the House to 435 representatives. Now each census determines how
those 435 seats will be divided among the 50 states.
Congressional Redistricting
After the states find out their reapportioned representation for the next 10-year period, each state legislature sets
up congressional districts—one for each representative. Representatives are elected from these congressional
districts. If a state is entitled to only one representative, it has one congressional district. In most states the state
legislature draws the boundary lines for each congressional election district. The process of setting up new district
lines after reapportionment has been completed is called redistricting. Over the years some state legislatures
abused the redistricting power. They did so in two ways— by creating congressional districts of very unequal
populations and by gerrymandering. During the early 1960s, for example, there were some states in which the
largest district in the state had twice the population of the smallest district. In these states a person’s vote in the
largest congressional districts had only half the value of a person’s vote in the smallest districts.
Redistricting Cases
In a series of decisions during the 1960s, the Supreme Court addressed reapportionment issues. In Baker v. Carr 1
(1962), the Court held that federal courts could decide conflicts over drawing district boundaries. Two years later,
the Court held that the equal protection clause of the Fourteenth Amendment required that seats in state
legislatures be apportioned on a population basis. Also, the Court ruled that the Constitution clearly intended that
a vote in one congressional district was to be worth as much as a vote in another district. This principle has come
to be known as the “one-person, one-vote” rule. As a result, today each congressional district contains about
650,000 people.
Gerrymandering
Historically, state legislatures have abused their power to divide the state into congressional districts by
gerrymandering. Gerrymandering means that the political party controlling the state government draws a
district’s boundaries to gain an advantage in elections. Gerrymandering often results in district boundaries that
have very irregular shapes. The term gerrymandering can be traced to Elbridge Gerry, an early DemocraticRepublican governor of Massachusetts. Gerry had signed a redistricting plan that gave his party a big political
advantage over the Federalists.
“Packing” and “cracking” are ways to gerrymander. Packing a district means drawing the lines so they include
as many of the opposing party’s voters as possible. Crowding the opposition’s voters into one district makes the
remaining districts safe for the majority party’s candidates. Cracking means dividing an opponent’s voters into
other districts, to weaken the opponent’s voter base. The Supreme Court has ruled that congressional districts
must be compact and contiguous, or physically adjoining. This requirement, plus the one-person, one-vote ruling,
has cut down on some of the worst examples of gerrymandering. Nevertheless, the competitive struggle of the two
party system continues to fuel the practice of gerrymandering. Many districts today are still drawn in irregular
shapes for political reasons.
Membership of the Senate
According to the Constitution, the Senate “shall be composed of two senators from each state.” Thus, each state is
represented equally. Today’s Senate includes 100 members—2 from each of the 50 states.
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Qualifications
The Constitution provides that senators must be at least 30 years old, citizens of the United States for 9 years
before election, and legal residents of the state they represent. All voters of each state elect senators at-large, or
statewide.
Term of Office
Elections for the Senate, like those for the House, are held in November of even numbered years. Senators also
begin their terms on January 3, after the election held the previous November. The Constitution provided for
continuity in the Senate by giving senators 6-year terms and by providing that only one-third of the senators
would run for reelection every 2 years. In fact, the Senate has more continuity than the Framers planned because
most senators win reelection. If a senator dies or resigns before the end of the term, the state legislature may
authorize the governor to appoint someone to fill the vacancy until the next election. The governor may also call a
special election to fill the seat.
Salary and Benefits
The Senate and the House set their own salaries. In 1789 salaries for both houses were $6 per day. Low pay in the
early years deterred some people from running for Congress. Congress has voted itself periodic salary increases.
In 1991 it voted for a pay hike of $23,000, explaining that the increase would be accompanied by a prohibition on
honoraria—money paid for speeches. Meanwhile, a constitutional amendment affecting legislative salaries was
being considered. Originally proposed by James Madison in 1789, the Twenty-Seventh Amendment was finally
ratified by the required 38 states when Michigan cast the deciding vote on May 7, 1992. The amendment prohibits
a sitting Congress from giving itself a pay raise. Any new congressional salary increase will take effect after an
intervening election.
In addition to their salaries, members of Congress enjoy a number of benefits and resources. These include
stationery, postage for official business (called the “franking privilege”), a medical clinic, and a gymnasium.
Members also receive large allowances to pay for their office staff and assistants, trips home, telephones,
telegrams, and newsletters. All members are entitled to an income tax deduction to help maintain two residences,
one in their home state and one in Washington, D.C. Moreover, when they retire, senators and representatives
may be eligible for pensions of $150,000 or more a year for life.
Privileges of Members
The Constitution provides members of Congress certain protections while they carry out their legislative duties.
They are free from arrest “in all cases except treason, felony, and breach of the peace,” when they are attending
Congress or on their way to or from Congress. Members of Congress cannot be sued for anything they say on the
House or Senate floor. This privilege does not extend to what members may say outside of Congress. The Senate
and the House both may judge members’ qualifications and decide whether to seat them. Each house may refuse
to seat an elected member by a majority vote. This power of exclusion was later defined by the Supreme Court.
Each house may also “punish its own members for disorderly behavior” by a majority vote and expel a legislator
by a two-thirds vote. Only the most serious offenses such as treason or accepting bribes are grounds for expulsion.
Members who are guilty of lesser offenses may be censured. Censure is a vote of formal disapproval of a
member’s actions.
The Members of Congress
Congress includes 535 voting members— 100 senators and 435 representatives. In addition, there are 4
delegates in the House—1 each from the District of Columbia, Guam, American Samoa, and the Virgin Islands—
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and 1 resident commissioner from Puerto Rico, none of whom can vote. However, they do attend sessions,
introduce bills, speak in debates, and vote in committees.
Characteristics
Nearly half the members of Congress are lawyers. A large number of members also come from business, banking,
and education. Why are there so many lawyers? Because lawyers by profession deal with laws, it is logical for
them to serve as legislators. Training in law helps a legislator understand the complex legal issues that may affect
legislation. Senators and representatives typically have been white, middle-aged males. The average age of
members of Congress is usually over 50. Slowly Congress has begun to reflect the racial, ethnic, and gender
diversity of the general population.
Reelection to Congress
Membership in Congress has changed very slowly because officeholders seldom lose reelection. One
representative put it simply: “All members of Congress have one primary interest—to be reelected.” Beginning
with Franklin Roosevelt’s landslide presidential victories in the 1930s, incumbency helped Democrats dominate
Congress in all but a few years. Between 1945 and 1990, about 90 percent of all incumbents, or those members
already in office, won reelection. In some elections, many seats went unchallenged because opponents knew that
they would have little or no chance of winning. One analyst said that winning an election to Congress for most
members was like removing olives from a bottle—“after the first one, the rest come easy.”
Why have incumbents been so successful? First, incumbents find it easier to raise campaign funds because they
have worked with so many people while representing their district. Second, many districts have been
gerrymandered in the incumbent party’s favor. Third, incumbents are better known to voters, who see them at
rallies and on television and read about them in newspapers. Fourth, incumbents use their position to help solve
voters’ problems. Finally, incumbents win because the majority of voters believe their incumbent best represents
their views.
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Section 2: The House of Representatives
■Why are committees more important in the House than they are in the Senate?
■Why is the Rules Committee one of the most powerful committees in the House?
The House of Representatives
Political division and debate is unavoidable in democratic government. Legislators must have freedom to express
their sometimes inflammatory opinions. Rules are necessary to help ensure fairness, to enable the legislature to
conduct business, and to protect the minority. Article I, Section 5, of the Constitution says: “Each House may
determine the Rules of its Proceedings.” Thomas Jefferson compiled the first parliamentary manual for the Senate
when he was vice president.
Rules for Lawmaking
The main task of each house of Congress is the same—to make laws. Because the House and Senate differ in
many ways, each house has organized itself to carry out its work of making the laws. Complex rules and a
structure of leadership enable Congress to carry out its lawmaking duties.
Complex Rules
Each chamber has scores of precedents based on past rulings that serve as a guide to conducting business. The
House and Senate each print their rules every two years. House rules are generally aimed at defining the actions
an individual representative can take, such as limiting representatives to speaking for five minutes or less during a
debate. The complex rules in the House are geared toward moving legislation quickly once it reaches the floor.
House debates rarely last more than one day. Moreover, leaders of the House of Representatives have more power
than leaders in the Senate. For example, the rules of the House allow its leaders to make key decisions about
legislative work without consulting other House members.
Committee Work
Committees do most of the work of Congress. In the House, committee work is more important than in the
Senate. Because the membership of the House is so large, its members must organize themselves into smaller
groups in order to accomplish their work efficiently. In the committees representatives have more influence
than on the House floor, and they have the time to study and shape bills. In addition, representatives tend to
specialize in a few issues that are important to their constituents—the people in the districts they represent.
Importance of Party Affiliation
Many procedures in Congress are organized around the political party affiliation of members. In both the House
and Senate, the Republicans sit on the right side of the chamber, the Democrats on the left. In each house the
majority party selects the leaders of that body, controls the flow of legislative work, and appoints committee
chairs. The majority party is also able to alter the number of committees and the structure of the committees.
House Leadership
Organized leadership coordinates the work of the 435 individual members of the House of Representatives. These
leaders serve 6 purposes:
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(1) organizing and unifying party members;
(2) scheduling the work of the House;
(3) making certain that lawmakers are present for key floor votes;
(4) distributing and collecting information;
(5) keeping the House in touch with the president;
(6) influencing lawmakers to support the policies of their political party.
The Constitution provides only for the presiding officer of the House. Other than that, the House creates all of its
other leadership positions.
The Speaker of the House
The Speaker of the House is the presiding officer of the House and its most powerful leader. The Constitution
states that the House “shall choose their Speaker and other officers.” A caucus, or closed meeting, of the majority
party chooses the House Speaker at the start of each session of Congress, and the entire House membership
approves the choice of Speaker. As both the presiding officer of the House and the leader of the majority party,
the Speaker has great power. Presiding over the sessions of the House, the Speaker can influence proceedings by
deciding which members to recognize first. The Speaker also appoints the members of some committees,
schedules bills for action, and refers bills to the proper House committee. Finally, the Speaker of the House
follows the vice president in the line of succession to the presidency. Today, Speakers rely as much on persuasion
as on their formal powers to exercise influence. On a typical day, the Speaker may talk with dozens of fellow
members of Congress. Often the Speaker does so just to listen to requests for a favor. In return, the Speaker
expects representatives’ support on important issues.
House Floor Leaders
The Speaker’s top assistant is the majority leader. The majority leader’s job is to help plan the party’s legislative
program, steer important bills through the House, and make sure the chairpersons of the many committees finish
work on bills important to the party. The majority leader is the floor leader of his or her political party in the
House and, like the Speaker, is elected by the majority party. Thus, the majority leader is not actually a House
official but a party official.
The majority leader has help from the majority whip and deputy whips. These whips serve as assistant floor
leaders in the House. The majority whip’s job is to watch how majority-party members intend to vote on bills, to
persuade them to vote as the party wishes, and to see that party members are present to vote.
The minority party in the House also elects its own leaders. These include the minority leader and the minority
whips. The responsibilities of these leaders are much the same as those of the majority party’s leaders, except they
have no power over scheduling work in the House.
Lawmaking in the House
To a visitor, the floor of the House of Representatives may seem totally disorganized. Some representatives talk in
small groups or read newspapers. Others constantly walk in and out of the chamber. Most representatives are not
even on the floor, because they are in committee meetings, talking with voters, or taking care of other business.
Representatives reach the floor quickly, however, when it is time for debate or a vote on proposed bills. Usually,
the House starts its floor sessions at noon or earlier. Buzzers ring in members’ offices in the House office
buildings, committee rooms, and in the Capitol, calling representatives. The House is normally in session from
Monday through Friday. Mondays are for routine work. Not much is done on Friday because many
representatives leave to go to their home districts over the weekend. Thus, most of the House’s important work is
done from Tuesday through Thursday.
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How House Bills Are Scheduled
All laws start as bills. A proposed law is called a bill until both houses of Congress pass it and the President signs
it (or Congress overrides a veto). To introduce a bill in the House, representatives drop it into a mahogany box
that is accessible to all near the front of the chamber. After a bill is introduced, the Speaker of the House sends it
to the appropriate committee for study, discussion, and review. Of the thousands of bills and resolutions
introduced during each legislative term of Congress, only about 10 to 20 percent ever go to the full House for a
vote. Bills that survive the committee process are put on one of the House calendars. Calendars list bills that are
up for consideration. The House has five calendars. Three are used to schedule different kinds of bills for
consideration. The Union Calendar lists bills dealing with money issues. Most other public bills are put on the
House Calendar. The Private Calendar lists bills that deal with individual people or places. Any bill that the
House gives unanimous consent to debate out of regular order is listed on the Consent Calendar. Finally, the
Discharge Calendar is used for petitions to discharge a bill from committee.
The House Rules Committee
The Rules Committee serves as the “traffic officer” in the House, helping to direct the flow of major legislation.
It is one of the oldest House committees, and the most powerful. After a committee has considered and approved
a major bill, it usually goes to the Rules Committee. The Rules Committee can move bills ahead quickly, hold
them back, or stop them completely. Because the Rules Committee has the power to decide how and when
legislation will be considered by the House, it has often been the focus of political battles.
Function of the Rules Committee
Major bills that reach the floor of the House for debate and for a vote do so by a “rule”—or special order— from
the Rules Committee. As major bills come out of committee, they are entered on either the Union Calendar or the
House Calendar in the order received. The calendars have so many bills that if they were taken up in that order,
many would never reach the floor before the end of the session. To resolve this problem, the chairperson of the
committee that sent the bill to the Rules Committee may ask for it to move ahead of other bills and to be sent to
the House floor. If the Rules Committee grants the request, the bill moves ahead. The Rules Committee may also
include a time limit for debate on the bill and specify how much the bill may be amended on the floor.
Other Purposes of the Rules Committee
The Rules Committee also settles disputes among other House committees. For example, the Armed Services
Committee may be considering a bill that involves an area also covered by the Veterans’ Affairs Committee. The
Rules Committee can help resolve any dispute between the two committees. Finally, the Rules Committee often
delays or blocks bills that representatives and House leaders do not want to come to a vote on the floor. In this
way the Rules Committee draws criticism away from members who might have to take an unpopular stand on a
bill if it reaches the floor.
A Quorum for Business
A quorum is the minimum number of members who must be present to permit a legislative body to take official
action. For a regular session, a quorum consists of the majority of the House—218 members. When the House
meets to debate and amend legislation may often sit as a Committee of the Whole. In that case, only 100 members
constitute a quorum. This procedure helps speed the consideration of important bills. The Committee of the
Whole cannot pass a bill. Instead, it reports the measure back to the full House with whatever changes it has
made. The House then has the authority to pass or reject the bill.
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Section 3: The Senate
■Why does the Senate have fewer rules and a less formal atmosphere than the House?
■Why does the Senate usually take longer than the House to pass a bill?
The Senate at Work
Visitors going from the House to the Senate are often startled by the difference. The Senate chamber is smaller
than the House chamber. Usually only a few senators attend sessions. The Senate chamber has 100 desks—one
for each senator— facing a raised platform where the president pro tem and another senator preside over sessions.
The party leaders or their assistants stay in the Senate chamber at all times to keep the work moving and to look
after their party’s interests.
Informal Atmosphere
In the Senate, the rules are more flexible than in the House. They are designed to make certain that all senators
have maximum freedom to express their ideas. For example, the Senate usually allows unlimited debate on
proposed legislation. Senate rules are spelled out in fewer than 100 pages. With fewer rules, the Senate has a more
informal atmosphere than the House. They may debate a proposal on and off for weeks or even months before
taking action on an issue.
Senate Leaders
Leadership in the Senate closely parallels leadership in the House, but the Senate has no Speaker. The vice
president presides in the Senate, but may not vote except to break a tie. Also, Senate procedures permit individual
senators more freedom in their activities. Consequently, party leaders in the Senate may not have as much
influence over other senators as their counterparts in the House.
The Vice President
The Constitution names the vice president as president of the Senate. The vice president, however, does not have
the same role and power as the Speaker of the House. The vice president may recognize members and put
questions to a vote. Because the vice president is not an elected member of the Senate, he or she may not take part
in Senate debates. The vice president may, if the situation warrants, cast a vote in the Senate, but only in the event
of a tie. A vice president may try to influence the Senate through personal contact with senators, however. Many
recent vice presidents previously served as senators and thus had close relationships with their former colleagues.
Most vice presidents find Senate duties unchallenging and devote much of their time to executive branch
activities, leaving little time to preside over the Senate. In the absence of the vice president, the president pro
tempore (or president pro tem) presides. The term pro tempore means “for the time being.” The Senate elects this
leader. The president pro tempore is from the majority party and is usually its most senior member.
Majority and Minority Floor Leaders
The majority and minority leaders are the most important officers in the Senate. Elected by the members of
their political parties, the majority and minority leaders in the Senate deal with party issues within the Senate,
rather than dealing with overall Senate issues. The majority leader’s main job is to steer the party’s bills through
the Senate. To do this, the majority leader plans the Senate’s work schedule and agenda in consultation with the
minority leader. The majority leader is responsible for making certain the majority party members attend
important Senate sessions and for organizing their support on key bills. The minority leader develops criticisms of
the majority party’s bills and tries to keep senators in the minority party working together. As in the House, whips
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and assistant whips assist the majority and minority leaders of the Senate by making sure that legislators are
present for key votes.
How Senate Bills Are Scheduled
As in the House, any member of the Senate may introduce a bill. Procedures for moving bills through the Senate,
however, are more informal than in the House. Because it is smaller, the Senate has never needed a committee
like the House Rules Committee. Instead, Senate leaders control the flow of bills to committees and to the floor
for debate and vote. They do this by consulting closely with one another and with other senators. The Senate has
only two calendars. The Calendar of General Orders lists all the bills the Senate will consider, while the
Executive Calendar schedules treaties and nominations. The Senate brings bills to the floor by unanimous
consent, a motion by all members present to set aside formal rules and consider a bill from the calendar. The
procedure has not changed much through the years.
The Filibuster
Because the Senate usually allows unlimited debate on any bill under consideration, one way for senators to
defeat a bill they oppose is to filibuster against it. To filibuster means to stall the legislative process and prevent a
vote. Stall tactics include talking continuously, delaying issues in committee, and other procedural roadblocks.
Senator Strom Thurmond of South Carolina set the record for a filibuster when he spoke against the Civil Rights
Act of 1957 for 24 hours and 18 minutes. A filibuster by a group of senators could go on for weeks or even
months. A filibuster can be stopped when three-fifths of the Senate (60 members) votes for cloture. Cloture is a
procedure that allows each senator to speak only 1 hour on a bill under debate. Obtaining a vote in favor of
cloture, however, is usually difficult, especially when each party controls close to the same number of Senate
seats. The filibuster is not commonly utilized as a legislative tactic in the Senate today. Senate rules now allow
other matters to continue during a filibuster, weakening the filibuster’s effectiveness. Because of the close
division of political parties in the Senate, the simple threat of a filibuster is often enough to delay or defeat a bill.
Politics
As in the House, Senate procedures are organized around the members’ party affiliations. Republicans sit on the
right side of the chamber, while Democrats sit on the left. More importantly, the majority party controls the flow
of legislative work.
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Section 4: Congressional Committees and Agencies
■Why are several different kinds of committees necessary in the House and Senate?
■Why are committee chairpersons considered the most powerful members of Congress?
■Why do members of Congress have large personal and committee staffs?
■How could a committee staffer have more influence than a member of Congress over a proposed bill?
Purposes of Committees
Both the House and Senate depend upon committees to effectively consider the thousands of bills that are
proposed each session. Committees help ease the workload and are the key power centers in Congress. The
committee system serves several important purposes. First, it allows members of Congress to divide their work
among many smaller groups. Lawmakers can become specialists on the issues their committees consider. This
system is the only practical way for Congress to operate because no lawmaker can possibly know the details of
each of the thousands of bills introduced in each term of Congress.
Second, from the huge number of bills introduced in each Congress, committees select those few that are to
receive further consideration. Committees are the places in which lawmakers listen to supporters and opponents
of a bill. It is in committees where they work out compromises, and decide which bills will or will not have a
chance to become law. Most bills never get beyond the committee stage.
Third, by holding public hearings and investigations, committees help the public learn about key problems and
issues facing the nation. Congressional committees have called the public’s attention to such issues as organized
crime, the safety of prescription drugs, hunger in America, airline safety, and many other issues and concerns that
have confronted the nation.
Kinds of Committees
Congress has four basic kinds of committees: (1) standing committees; (2) select committees; (3) joint
committees; and (4) conference committees. Congress may, however, change the method of committee
organization and the number of committees.
Standing Committees
Very early in its history, Congress set up permanent groups to oversee bills that dealt with certain kinds of issues.
These are called standing committees because they continue from one Congress to the next. The House and
Senate each create their own standing committees and control their areas of jurisdiction, occasionally adding or
eliminating a standing committee when necessary. The majority party has power to write the rules in Congress.
Because the majority party in each house controls the standing committees, it selects a chairperson for each from
among its party members. The majority of the members of each standing committee are also members of the
majority party. Party membership on committees is usually divided in direct proportion to each party’s strength in
each house. For example, if 60 percent of the members of the House are Republicans, then 60 percent of the
members of each House standing committee will be Republicans. Thus, a 10-member committee would have 6
Republicans and 4 Democrats.
Subcommittees
Nearly all standing committees have several subcommittees. Each subcommittee specializes in a subcategory of
its standing committee’s responsibility. Subcommittees, like standing committees, usually continue from one
Congress to the next, although the majority party may make changes.
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Select Committees
From time to time, each house of Congress has created temporary committees. Usually, these committees, called
select committees, study one specific issue and report their findings to the Senate or the House. These issues can
include:
(1) matters of great public concern, such as organized crime;
(2) overlooked problems, such as hunger; or
(3) problems of interest groups, such as owners of small business, who claim that Congress has not met
their needs.
Select committees usually cannot report bills to their parent chamber, however. Select committees were usually
set up to last for no more than one term of Congress. In practice, however, select committees may be renewed and
continue to meet for several terms of Congress. For this reason, both the House and Senate have reclassified
several select committees, such as the Select Intelligence Committee, as permanent committees.
Joint Committees
Made up of members from both the House and the Senate, joint committees may be either temporary or
permanent. Like other committees, they have members from both political parties. These committees—such as the
Joint Economic Committee—usually act as study groups with responsibility for reporting their findings back to
the House and Senate. In theory, joint committees coordinate the work of the two houses of Congress.
Conference Committees
No bill can be sent from Congress to the president until both houses have passed it in identical form. A
conference committee is a temporary committee set up when the House and Senate have passed different
versions of the same bill. Members of the conference committee, called conferees, usually come from the House
and Senate standing committees that handled the bill in question. The job of the conference committee is to
resolve the differences between the two versions of the bill. Conference committees play a key role in policy
making because they work out a bill that both houses may accept and send to the president. The committee
accomplishes this task by bargaining over each section of the bill. A majority of the conferees from each house
must accept the final compromise bill—called a conference report— before it can be sent to the floor of the House
and Senate. When the conference committee’s report—the compromise bill it has finally worked out—reaches the
floor of each house, it must be considered as a whole and may not be amended. It must be accepted or rejected as
it is when it comes from the conference committee.
Choosing Committee Members
Membership in congressional committees is extremely important to the role played by members of Congress.
Assignment to the right committees can help strengthen a member’s career in several ways. First, membership on
some committees can increase a lawmaker’s chances for reelection. For freshmen, the best committees may be
those that deal with bills that will benefit a lawmaker’s state or district. Second, membership on some committees
can mean the lawmaker will be able to influence national policy making. Committees that often help formulate
national policies include those dealing with education, the budget, health, the judiciary, and foreign policy. Third,
some committees enable a member to exert influence over other lawmakers because they deal with matters
important to everyone in Congress. Some of these committees include the House Rules Committee and taxation
and appropriations committees. In the House the key committees are Rules, Ways and Means (taxes), and
Appropriations (spending). In the Senate the most prestigious committees are Foreign Relations, Finance, and
Appropriations. Assignment to the Senate Foreign Relations Committee, for example, will give a lawmaker a
chance to directly influence American foreign policy. Senators on this committee usually receive a great deal of
publicity.
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Assignment to Committees
In both the House and Senate, the political parties assign members to the standing committees. Newly elected
members of Congress who wish to serve on a particular committee or veteran lawmakers who wish to transfer to
another committee may request assignment to the committees on which they want to serve. Each member may
only serve on a limited number of standing committees and subcommittees.
The Committee Chairperson’s Role
Along with party leaders, the chairpersons of standing committees are the most powerful members of Congress.
They make the key decisions about the work of their committees—when their committees will meet, which bills
they will consider, and for how long. They decide when hearings will be held and which witnesses will be called
to testify for or against a bill. In addition, chairpersons may hire committee staff members and control the
committee budget. Finally, they manage the floor debates that take place on the bills that come from their
committees.
The Seniority System
The unwritten rule of seniority traditionally has guided the selection of chairpersons. The seniority system gave
the member of the majority party with the longest uninterrupted service on a particular committee the leadership
of that committee. Criticism of the seniority system has resulted in several changes. For example, it is now
accepted that chairpersons of House committees should hold their positions for no more than three consecutive
terms.
Congressional Staff Role
Lawmakers rely on their staffs to help them handle the growing workload of Congress, communicate with voters,
help run committee hearings and floor sessions, draft new bills, write committee reports, and attend committee
meetings. Congressional staffs also help lawmakers get reelected. Staffers help members of Congress get
publicity, keep an eye on political developments back home, and write speeches and newsletters. They also help
raise funds for election campaigns and meet with lobbyists and visitors from home.
Congressional Staff Growth
Congress has not always relied on staff to accomplish its work. For almost 100 years, senators and representatives
had no personal aides. Inadequate staffing had become an urgent complaint by the time Congress considered the
Legislative Reorganization Act in 1946. After that the number of staff members increased dramatically. The
House and Senate employed 2,000 personal staff members in 1947, but more than 11,500 in 1990. Committee
staff increased from 400 to more than 3,000 in that same period. Congressional staffs grew as lawmaking became
more complex after the early 1900s. Lawmakers could not be experts on all the issues that came before their
committees or upon which they voted in Congress. Having a large staff became one way to get expert help. Also,
the demands that constituents placed on lawmakers increased over the years. Members of Congress needed a large
office staff simply to deal with the many letters from people in their states or congressional districts. In addition to
writing to their senators and representatives, voters in increasing numbers have turned to their lawmakers for help
in solving problems.
Personal Staff
Congress includes two types of staffs: personal staff and committee staff. Personal staff members work directly
for individual senators and representatives. Committee staff members work for the many House and Senate
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committees. The size of senators’ personal staffs varies because allowances to pay for them are based on the
population of the senator’s state and distance from the capital. Senators each receive a yearly budget to operate
their offices. Most of this amount is to pay staff salaries. About one-third of personal staff members work in the
legislators’ home states. The rest work in Washington, D.C. Each member of the House has an allowance to pay
for a personal staff. The House and Senate employ thousands of personal staff aides. Lawmakers can hire and fire
staff members at will.
Administrative Assistants
Lawmakers usually have three types of personal staff members in their offices. The administrative assistant,
called an AA, is a very important legislative aide. The AA runs the lawmaker’s office, supervises the lawmaker’s
schedule, and gives advice on political matters. A good AA also deals with influential people from the
lawmaker’s congressional district or state who may influence the lawmaker’s reelection.
Legislative Assistants
Legislative assistants, or LAs, are a second type of personal staff member. An LA makes certain that the
lawmaker is well informed about the many bills with which she or he must deal. An LA does research, drafts bills,
studies bills currently in Congress, and writes speeches and articles for the lawmaker. Another important part of
the LA’s job is to assist the lawmaker in committee meetings and to attend committee meetings when the
lawmaker cannot be present. Senators and representatives are members of so many committees and
subcommittees that they cannot possibly attend all the committee meetings. When they do attend committee
meetings, they often come in at the last minute and briefly talk with their LA to find out what has taken place.
Often the senator or representative has not seen the speech or the questions but relies on the LA’s judgment. LAs
also keep track of the work taking place on the floor of Congress, as well as bills that are in committee. While
routine legislative business goes on, the lawmaker may be in a committee meeting or talking with voters. When
the buzzer rings, signaling time for a vote, lawmakers rush to the floor of the Senate or House from their offices
or committee rooms. They may not know what the vote is about unless it involves a major bill that has been
scheduled long in advance. As they walk, they look for their LAs.
Caseworkers
Some personal staff members are called caseworkers because they handle the many requests for help from people
in a lawmaker’s state or congressional district. In addition to their offices in Washington, D.C., lawmakers are
likely to have offices in key cities in their home district. Caseworkers usually staff these offices.
Committee Staff
Every committee and subcommittee in Congress has staff members who work for that committee. The committee
chairperson and the senior minority party member of the committee are in charge of these staff members.
Committee staffers draft bills, study issues, collect information, plan committee hearings, write memos, and
prepare committee reports. They are largely responsible for the work involved in making laws. Some senior
committee staff members are very experienced and are experts in the area their committee covers, whether it be
tax policy, foreign affairs, or health care.
Too Much Power?
The people do not elect congressional staffers. Yet they play a key role in lawmaking. Do they have too much
influence? Some lawmakers believe they do. Other lawmakers disagree. They say that the staff really collects
information and develops alternative courses of action for the lawmakers.
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Support Agencies
Several agencies that are part of the legislative branch provide services that help Congress carry out its powers.
Some of the services these agencies provide are also available to the other branches of government and to private
citizens. Congress has created four important support agencies.
The Library of Congress
Congress created the Library of Congress in 1800 to “purchase such books as may be necessary for the use of
Congress.” Today, it is one of the largest libraries in the world. The Library has a Congressional Research
Service (CRS) with hundreds of employees. Members of Congress use the CRS to answer requests for
information from voters. They also use CRS for research on matters related to bills before Congress.
Congressional Budget Office (CBO)
Congress established the CBO in 1974 to coordinate the budget-making work of Congress, study the budget
proposals put forward by the president each year, and make cost projections of proposed new programs. The CBO
counterbalances the president’s elaborate budget-making organization. CBO staff members study economic
trends, keep track of how much congressional committees are spending, and prepare a report on the budget each
April. They also calculate how Congress’s budget decisions might affect the nation’s economy.
General Accounting Office (GAO)
This agency is the nation’s watchdog over the spending of funds Congress appropriates. A comptroller general
appointed to a 15-year term directs the GAO. They review the financial management of government programs
that Congress creates, collect government debts, settle claims, and provide legal service.
Government Printing Office (GPO)
The Government Printing Office is the largest multipurpose printing plant in the world. It does the printing for
the entire federal government. Every day the GPO prints the Congressional Record, a daily record of all the bills
introduced in both houses and of the speeches and testimony presented in Congress.
The support agencies provide a vital function for Congress. They have helped the legislative branch become less
dependent on the executive branch for information. This has helped Congress regain some of the power it held in
earlier years.
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Section 5: Congressional Powers
■Why are the money powers granted to Congress by the Founders so important?
■How has the commerce clause enabled Congress to apply a loose interpretation to the Constitution?
Constitutional Provisions
The Constitution describes the legislative powers of Congress in Article I, Section 8, Clauses 1-18. These
expressed powers of Congress are sometimes called the enumerated powers. The last clause (18) of Section 8
gives Congress power to do whatever is “necessary and proper” to carry out its other powers. This necessary and
proper clause implies that Congress has powers beyond those expressed in the first 17 clauses. Because these
implied powers have allowed Congress to expand its role to meet the needs of a growing nation, the “necessary
and proper clause” has often been called the elastic clause.
Conflicting Interpretations – McCullough v. Maryland
Because of the far-reaching implications of the expanding power of Congress, the Supreme Court has often been
the site of conflict over what is “necessary and proper” legislation. The first major conflict was between those
who believed in a “strict construction,” or interpretation, of the Constitution and those who believed in a “loose
construction.” When Congress created the Second Bank of the United States in 1816, loose constructionists and
strict constructionists engaged in debates. Strict constructionists, who believed that Congress did not have the
power to charter such a bank, supported the state of Maryland when it placed a tax on the notes of the federal
bank. James McCulloch, a teller at the Second Bank’s branch in Baltimore, issued notes on which the tax had not
been paid. Maryland filed suit against McCulloch. When Maryland won the suit in its own courts, the United
States appealed. The Supreme Court reversed the decision, supporting the loose constructionists.
Powers Denied
The powers of Congress, like those of the other branches of the national government, are limited. One important
constitutional limit on congressional power is the Bill of Rights. In addition, Article I, Section 9, denies certain
powers to Congress. Congress may not suspend the writ of habeas corpus, a court order to release a person
accused of a crime to court to determine whether he or she has been legally detained. Another important limitation
denies Congress the authority to pass bills of attainder, laws that establish guilt and punish people without
allowing them a trial. Congress is also prohibited from passing ex post facto laws, laws that make crimes of acts
that were legal when they were committed. Article I, Section 9, also denies several other powers to Congress,
among them the power to tax exports.
Legislative Powers
Congress has both legislative and non-legislative powers. Non-legislative powers include the power to confirm or
deny presidential appointments. Congress has expanded the domain of its legislative powers—the power to pass
laws—as the nation has grown. The most significant expansion of congressional legislative power is in its control
over the economy—taxing, spending, and regulating commerce.
The Taxing and Spending Power
Sometimes called “the power of the purse,” the power to levy taxes and provide for the general welfare of the
United States is among the most important powers of Congress. It allows Congress to influence national policy in
many areas because no government agency can spend money without congressional authorization. Congress may
use taxes for many purposes. For example, taxes on narcotics are meant to protect public health. Article I, Section
7, says “All Bills for raising Revenue shall originate in the House of Representatives.” Revenue bills, laws for
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raising money, start in the House and then go to the Senate. This provision was adopted at the Constitutional
Convention because the more populous states, such as Virginia and Pennsylvania, insisted on having a greater
voice in tax policy than the smaller states.
The legislative process for appropriations bills—proposed laws to authorize spending money—is not spelled out
in the Constitution. It has developed through usage. Article I, Section 9, merely requires that “No Money shall be
drawn from the Treasury, but in Consequence of Appropriations made by Law.” Spending requests generally
come from the executive branch. Today, most are presented to Congress in the president’s annual budget
proposal. Over the years Congress has used its taxing and spending authority to expand its regulatory powers. For
example, when Congress authorizes money for state or local governments, it frequently requires that local
officials follow specific federal regulations as a condition of the grant.
Other Money Powers
In addition to levying taxes and authorizing that money be spent, Article I allows Congress to borrow to help pay
for the cost of government. Congress does this in various ways. The most common method is by authorizing the
sale of government securities—bonds or notes. When people buy savings bonds, Treasury bills, or Treasury notes,
they are lending the government money. Because it must borrow money to meet its operating expenses, the
government has a national debt—the total amount of money the government owes at any given time. Although
the Constitution does not restrict government borrowing, since 1917 Congress has attempted to set an annual limit
on the national debt. In recent years, however, it has raised the ceiling time after time so that the government
could borrow more money to pay its bills. As part of Congress’s money powers, the Constitution gives the
legislative branch the power to coin money and to regulate its value. All currency the federal government issues is
legal tender, meaning that it must be accepted as payment. In addition, Congress has the power to punish
counterfeiters—people who print postage stamps, paper money, or government securities illegally— and to
establish a system of standard weights and measures. The money powers of Congress also include the authority to
make laws concerning bankruptcy— legal proceedings to administer the assets of a person or business that
cannot pay its debts.
The Commerce Power
Article I, Section 8, Clause 3, the so-called commerce clause of the Constitution, authorizes Congress to regulate
foreign commerce and interstate commerce, or commerce among the states. In this clause the Founders provided
what has become one of the most sweeping powers of government. The Supreme Court has promoted the
expansion of this power by consistently ruling that the meaning of commerce—whether international or
interstate—far exceeds the mere buying and selling of goods and services.
Foreign Policy Powers
Congress has important powers in the areas of foreign policy and national defense. Chief among these are the
power to approve treaties, to declare war, to create and maintain an army and navy, to make rules governing land
and naval forces, and to regulate foreign commerce. Congress shares foreign policy and national defense
responsibilities with the president. Historically it generally has submitted to presidential leadership in this area.
Although Congress has declared war only 5 times, the president, as commander in chief, has used military force in
other nations on more than 200 occasions. Most significant of these were the Korean War (1950 to 1953) and the
Vietnam War (1964 to 1973). Both conflicts were fought without declarations of war. After the Vietnam War,
Congress acted to reassert its foreign policy powers. Congress held that the Constitution never intended for the
president to have the power to involve the nation in undeclared wars. Therefore, in 1973, over President Nixon’s
veto, Congress passed the War Powers Act. This law forbids the president to commit American forces to combat
for more than 60 days without congressional notification within 48 hours. Every president since the act’s passage
has protested its constitutionality.
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Providing for the Nation’s Growth
The Constitution also grants Congress power over naturalization, the process by which immigrants to the United
States may become citizens. In addition, Article IV, Section 3, authorizes Congress to admit new states and pass
laws needed to govern any territories. Finally, both Article I and Article IV empower Congress to pass laws to
govern federal property. The Founders envisioned such property as military bases and government buildings.
Today, however, these provisions establish federal authority over national parks, historic sites, and public lands.
Other Legislative Powers
Article I, Section 8, gives Congress the power to grant copyrights and patents. A copyright is the exclusive right
to publish and sell a literary, musical, or artistic work for a specified period of time. Under the present law, this
period is the lifetime of the creator plus 50 years. A patent is the exclusive right of an inventor to manufacture,
use, and sell his or her invention for a specific period, currently 17 years (after which a patent may be renewed).
Article I, Section 8, also grants Congress the power to establish a post office and federal courts. Congress has also
used its postal power to combat criminal activity; using the mail for any illegal act is a federal crime.
Non-legislative Powers
In carrying out their legislative powers, both the House and the Senate perform the same basic tasks—
considering, amending, and voting on bills. While most non-legislative functions of Congress require cooperation
between the houses, each house usually plays a different role in exercising these powers.
The Power to Choose a President
The Constitution requires a joint session of Congress to count the Electoral College votes. If no candidate for
president has a majority of the electoral votes, the House chooses the president from the three candidates with the
most electoral votes. Each state’s House delegation has one vote. The Senate, by majority vote, chooses the vice
president from the two candidates with the most electoral votes. It is, therefore, possible that the vice president
could be from a different party than the president. Only two times in American history has no presidential
candidate captured a majority of the electoral votes. In 1800 the House elected Thomas Jefferson over Aaron
Burr, and in 1824 it chose John Quincy Adams over Andrew Jackson. The Twentieth and Twenty-fifth
Amendments give Congress the power to settle problems arising from the death of elected candidates and from
presidential incapacity or resignation. The Twenty-fifth Amendment provides that when the office of vice
president becomes vacant, the president appoints a replacement. Both houses of Congress must confirm the
appointment.
The Ratification Power
Article II, Section 2, of the Constitution gives the Senate the exclusive power to ratify treaties between the United
States and other nations. To ratify a treaty, two-thirds of the senators present must vote for it. This power is one of
the key ways in which Congress helps shape foreign policy. In recent years presidents have often bypassed the
treaty ratification process by negotiating executive agreements with other heads of state. These agreements do not
require Senate approval, but also are not as binding or permanent as treaties.
The Amendment Power
Congress shares with state legislatures the power to propose amendments. Amendments may be proposed by a
two-thirds vote of both houses or by a convention called by the legislatures of two-thirds of the states. To date, all
of the constitutional amendments added to the Constitution have started in Congress. The states have approved 27
proposed amendments and have failed to ratify only 6.
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Section 6: Congressional Oversight
■In what ways are a witness’s rights in a congressional investigation similar to and different from a witness’s
rights in a court?
■By what methods does Congress exercise its power of legislative oversight?
■Why has power shifted back and forth between the president and Congress over the years?
The Power to Investigate
The Founders neither granted nor denied Congress the power to conduct investigations. Nevertheless, in 1792,
after Native Americans soundly defeated the United States Army, Congress launched an investigation of the
military. This power has played an important role in American politics ever since.
The Investigation Process
A standing committee or a select committee may conduct investigations. Investigations may last for several days
or go on for months. Dozens of witnesses may be called to testify, sometimes under oath, at committee hearings.
Congressional investigations occur for many reasons. Most get little notice, but a few have become media events,
such as the investigation of steroid use in baseball. Investigations may have a variety of consequences. In most
circumstances they lead to new legislation to deal with a problem, changes in a government program, or removal
of officials from office. Sometimes, however, they damage the reputations of innocent people.
Congressional Powers and Witness Rights
Although congressional investigations are not trials, Congress has several powers that help committees collect
evidence. Like courts, congressional committees have the power to subpoena witnesses. A subpoena is a legal
order that a person appear or produce requested documents. Also like courts, congressional committees can
require witnesses to testify under oath. Witnesses who do not tell the truth can be criminally prosecuted for
perjury, or lying under oath. In addition, committees may punish those who refuse to testify or otherwise will not
cooperate by holding them in contempt, or willful obstruction, of Congress. In modern times, the Supreme Court
ruled that Congress must respect witnesses’ constitutional rights just as a court does. One way that congressional
committees have sidestepped this requirement is by granting immunity to witnesses. Immunity is freedom from
prosecution for witnesses whose testimony ties them to illegal acts. Of course, the Fifth Amendment states that
people cannot be forced to testify against themselves. Witnesses who are granted immunity, however, can be
required to testify about illegal activities in which they are involved. Those who refuse may be held in contempt
and jailed.
Legislative Oversight
The power of legislative oversight involves a continuing review of how effectively the executive branch carries
out the laws Congress passes. Under its commerce power and the necessary and proper clause Congress has
created a huge bureaucracy. In exercising its oversight power, congressional committees keep watch over these
agencies of the executive branch. Legislative oversight is a good example of the constitutional principle of
checks and balances. Congress makes the laws. The job of the executive branch is to carry them out. In doing so,
the executive branch has the power to decide what legislation means and how it should be put into effect. Through
its power of legislative oversight, Congress can check on how the executive branch is administering the law.
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Limits on Legislative Oversight
In practice, however, lawmakers exercise the power of legislative oversight in an inconsistent way. There are
several reasons that legislative oversight is not carried out consistently. First, lawmakers do not have enough staff,
time, or money to keep track of everything going on in the executive branch. Second, lawmakers know there are
not many votes to be gained from most oversight activities. The power of Congress to appropriate money
provides another means of oversight. Each year Congress reviews the budgets of all agencies in the executive
branch. This review allows Congress to shape public policy by expanding, reducing, or eliminating certain
programs.
Independent Counsel
In certain cases, Congress can demand the appointment of a special prosecutor called the independent counsel.
However, this law was allowed to expire in 1999, leaving all investigations to the Attorney General. Still, it is an
option that Congress can propose again.
Congress and the President
The Removal Power
The Constitution grants Congress the power to remove any federal official from office. The House of
Representatives has exclusive power over impeachment, a formal accusation of misconduct in office. If a
majority of the House votes to impeach a public official, the Senate conducts the trial. A two-thirds vote of those
Senators present is required for conviction and removal. When the impeachment proceedings involve a president,
the Chief Justice of the United States presides. Since 1789 the Senate has tried two presidents on impeachment
charges. However, the Senate acquitted President Andrew Johnson by only one vote in 1868. President Richard
Nixon would have been the second president impeached had he not resigned in 1974. In 1998 the House Judiciary
Committee recommended the impeachment of President Bill Clinton. By narrow margins, the House passed two
articles of impeachment against the president—for perjury in a grand jury testimony and for obstruction of justice.
In February 1999 the Senate acquitted the president by failing to obtain the two-thirds majority necessary to
convict on either charge.
The Confirmation Power
The Senate has the power to approve presidential appointments of federal officials. Because most of these
appointments involve the promotions of military officers, Senate action is usually only a formality. Each year,
however, the Senate looks more closely at several hundred nominations to cabinet and subcabinet positions,
regulatory agencies, major diplomatic and military posts, and the federal judiciary. Nominees to the Supreme
Court receive the most scrutiny. The Senate has rejected about 20 percent of Court nominations.
Cooperation and Conflict
The level of cooperation between Congress and the president has varied throughout history. Usually, the best
relations exist between the two branches when the president makes few demands on Congress. Less active
presidents—such as Dwight D. Eisenhower during the 1950s—who do not take an aggressive role in shaping
legislation may get along well with Congress. Those who propose major new programs will almost surely come
into conflict with the legislative branch. Recent presidents have frequently found it hard to work with Congress
for several reasons. A large national electorate chooses presidents who promote policies they feel are in the best
interests of the entire nation. Individual states and congressional districts, however, elect members of Congress.
Because they represent much narrower interests, members of Congress often have ideas very different from the
president about what constitutes desirable public policy.
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The system of checks and balances gives Congress and the president the power to counteract each other. For
example, the president may threaten a veto, arguing that a particular bill spends too much money and would spur
inflation harmful to the nation. Some members of Congress may cooperate in attempting to amend the bill or
override a veto because their states or districts would benefit from the bill.
Partisan political differences can affect the relationship between the president and Congress. This is especially
evident when the different parties control the White House and Congress. In recent decades the president’s party
rarely has controlled both houses of Congress, so conflict between the branches has increased. When this conflict
results in little government legislation it is referred to as “gridlock”.
Conflicts may also occur because the president and Congress have different political timetables. Presidents have a
little more than three years to develop, present, and move their programs through Congress before they have to
busy themselves running for reelection. At best, they have only eight years to accomplish their agenda. Senators
and representatives are not limited to two terms in office as is the president. Most can look forward to being
reelected for many terms. Consequently, members of Congress have political timetables quite different from the
president. Representatives, who serve only two-year terms, are always running for reelection. Senators, whose
terms are six years, can be more patient in handling controversial legislative proposals.
The Struggle for Power
For most of the first 150 years, Congress dominated policy making. At times, however, strong presidents such as
Andrew Jackson, Abraham Lincoln, and Franklin D. Roosevelt challenged congressional supremacy. They
increased presidential powers as they dealt with changing social, political, and economic conditions. The system
of checks and balances makes it likely that the president and Congress will always compete for power.
In times of crisis, Congress has delegated additional powers to the president. Presidents have declared martial
law, seized property, controlled transportation and communication, and sent armed forces overseas. Since the
1970s, presidents no longer possess automatic emergency powers. Presidents must notify Congress when they
intend to declare a national emergency. A state of emergency now cannot last more than one year unless the
president repeats the process. In addition, Congress can end a state of emergency at any time by passing
legislation.
Over the years presidents have assumed more responsibility for planning the national budget, the yearly financial
plan for the national government. Congress has limited the president’s ability to impound funds. Impoundment is
the president’s refusal to spend money Congress has voted to fund a program. The law requires that appropriated
funds be spent unless the president requests and both houses of Congress agree that the monies not be spent.
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Section 7: How a Bill Becomes a Law
■Why is it easier to defeat legislation than to pass it?
■What are the positive and negative implications of the lengthy process through which all bills must go before
becoming laws?
Types of Bills
Two types of bills are introduced in Congress. Private bills deal with individual people or places. They often
involve people’s claims against the government or their immigration problems. Private bills used to account for a
large number of the bills introduced in Congress. On the other hand, public bills deal with general matters and
apply to the entire nation. They are often controversial. Major public bills usually receive significant media
coverage. They may involve such issues as raising or lowering taxes, national health insurance, gun control, civil
rights, or abortion. Major public bills account for about 30 percent of the bills passed in each term of Congress.
They may be debated for months before they become law.
Riders
Bills usually deal with only one subject, such as civil rights or veterans’ benefits. Sometimes, however, a rider is
attached to a bill. A rider is a provision on a subject other than the one covered in the bill. Lawmakers attach
riders to bills that are likely to pass, although presidents have sometimes vetoed such bills because of a rider they
did not like. Sometimes lawmakers attach many unrelated riders simply to benefit their constituents. Such a bill
resembles a Christmas tree loaded with ornaments. “Christmas tree” bills (also referred to as Pork Barrel
Legislation) sometimes pass because of the essential nature of the underlying bill.
Why So Few Bills Become Laws
Less than 10 percent of all bills introduced in Congress become public laws. Why so few? One reason is that the
lawmaking process itself is very long and complicated. A congressional study found that more than 100 specific
steps may be involved in passing a law. Thus, at many points in the lawmaking process a bill can be delayed,
killed, or changed. This process has two important implications. First, it means that groups that oppose a bill have
an advantage over those that support it. Opponents can amend the bill or kill it at many steps along the way.
Second, because the lawmaking process has so many steps, sponsors of a bill must be willing to bargain and
compromise with lawmakers and interest groups. Compromise is the only way to get support to move a bill from
one step to the next. Without strong support, most major bills have little chance of becoming law. Moreover, bills
that powerful interest groups oppose are not likely to be passed. Another reason so few bills become law is that
lawmakers sometimes introduce bills they know have no chance of ever becoming law. Members of Congress
may introduce such bills to go on record in support of an idea or policy or simply to attract the attention of the
news media. Members may also want to satisfy an important group from their state or district. Still another reason
is to call attention to the need for new legislation in an area such as health care or highway safety. Introducing a
bill can help lawmakers avoid criticism at reelection time. By introducing a bill, lawmakers can report that they
have taken action on a particular problem. When the bill does not move forward, they can blame a committee or
other lawmakers.
Introducing a Bill
The Constitution sets forth only a few of the many steps a bill must go through to become law. The remaining
steps have developed as Congress has grown in size and complexity and the number of bills has increased.
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How Bills Are Introduced
The first step in the legislative process is proposing and introducing a new bill. The ideas for new bills come from
private citizens, interest groups, the president, or officials in the executive branch. Various people may write new
bills, such as lawmakers or their staffs, lawyers from a Senate or House committee, a White House staff member,
or even an interest group itself. Only a member of Congress, however, can introduce a bill in either house of
Congress. Lawmakers who sponsor a major public bill usually try to find cosponsors to show that the bill has
wide support. To introduce a bill in the House, a representative drops the bill into the hopper, a box near the
clerk’s desk. To introduce a bill in the Senate, the presiding officer must first recognize the senator who then
formally presents the bill. Bills introduced in the House and Senate are printed and distributed to lawmakers. Each
bill is given a title and a number. The first bill introduced during a session of the Senate is designated as S.l, the
second bill as S.2, and so forth. In the House, the first bill is H.R.1, the second bill is H.R.2, and so on. This
process is the first reading of the bill.
Committee Action
In each house of Congress, new bills are sent to the committees that deal with their subject matter. To reject a bill,
committee members can ignore it and simply let it die, a process called “pigeonholing,” or they can kill the bill
by a majority vote. When accepting a bill, a committee can first completely rewrite it, make changes, or
recommend that it be adopted as is before sending it back to the House or Senate for further action. Committee
members and staff are considered experts on their subjects. If they do not think a bill should move ahead, other
lawmakers will usually agree with them. Time is also a serious factor. Lawmakers have heavy workloads and
must depend on the judgment of their peers.
Committee Hearings
When a committee decides to act on a bill, the committee holds hearings on the bill. During a hearing, the
committee listens to testimony from witnesses who may include experts on the subject of the bill, government
officials, or representatives of interest groups concerned with the bill. Hearings are supposed to be an opportunity
for Congress to gather information on the bill. Most detailed information about the bill, however, comes from
research done by the committee staff. Hearings can be very important in their own right, though. Skillful
chairpersons may use hearings to influence public opinion for or against a bill or to test the political acceptability
of a bill. Hearings can also help focus public attention on a problem or give interest groups a chance to present
their opinions. In addition, hearings are often the best point in the lawmaking process to influence a bill. It is
during hearings that letters, telegrams, and e-mails from interested citizens can have their greatest impact on a bill.
Markup Session
After the hearings are completed, the committee meets in a markup session to decide what changes, if any, to
make in the bill. In this type of session, committee members go through the bill section by section, making any
changes they think the bill needs. A majority vote of the committee is required for all changes that are made to the
bill.
Reporting a Bill
When all the changes have been made, the committee votes either to kill the bill or to report it. To report the bill
means to send it to the House or Senate for action. Along with the revised bill, the committee will send to the
House or Senate a written report the committee staff has prepared. This report is important. It explains the
committee’s actions, describes the bill, lists the major changes the committee has made, and gives opinions on the
bill. The report is often the only document available to lawmakers or their staffs as they decide how to vote on a
bill.
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Floor Action
The next important step in the lawmaking process is the debate on the bill on the floor of the House and Senate.
Voting on the bill follows the debate. As you may recall, both houses have special procedures to schedule bills for
floor action.
Debating and Amending Bills
Usually, only a few lawmakers take part in floor debates. The pros and cons of the bill have been argued in the
committee hearings and are already well known to those with a real interest in the bill. The floor debate over a
bill, however, is the point where amendments can be added to a bill (unless the House has adopted a closed rule,
which means no amendments may be adopted). During the floor debate, the bill receives its second reading. A
clerk reads the bill section by section. After each section is read, amendments may be offered. Any lawmaker can
propose an amendment to a bill during the floor debate. Amendments range from the introduction of major
changes in a bill to the correction of typographical errors. Opponents of the bill sometimes propose amendments
to slow its progress through Congress or even to kill it. One strategy opponents use is to load it down with so
many objectionable amendments that it loses support and dies. In both the House and the Senate amendments are
added to a bill only if a majority of the members present approves them.
Voting on Bills
After the floor debate, the bill, including any proposed changes, is ready for a vote. A quorum, or a majority, of
the members must be present. The House or Senate now receives the third reading of the bill. A vote on the bill is
then taken. Passage of a bill requires a majority vote of all the members present. House and Senate members can
vote on a bill in one of three ways. The first way is by a voice vote, in which members together call out “Aye” or
“No.” The second way of voting is by a standing vote, or division vote, in which those in favor of the bill stand
and are counted and then those opposed stand and are counted. The roll-call vote is a voting method in which
everyone responds “Aye” or “No” as their names are called in alphabetical order. The House also uses a fourth
method called a recorded vote, in which members’ votes are recorded electronically and displayed on panels in
the House chamber. This last method, used since 1973, saves the House many hours of time that it once took for
roll-call votes in each session.
Final Steps in Passing Bills
To become law a bill must pass both houses of Congress in identical form. A bill passed in the House of
Representatives often differs at first from a Senate’s bill on the same subject.
Conference Committee Action
If one house will not accept the version of a bill the other house has passed, a conference committee must work
out differences between the versions. The members of the conference committee are called conferees or
managers. They usually come from the House and Senate committee members that handled the bill originally.
The conferees work out the differences between the two bills by arranging compromises. The conference
committee is supposed to consider only the parts of a bill on which there is disagreement, but sometimes it makes
important changes in the bill or adds provisions not previously considered by either chamber. A majority of the
members of the conference committee from each house drafts the final bill, called a conference report. Once
accepted, this bill can be submitted to each house of Congress for final action.
Presidential Action on Bills
After both houses of Congress have approved a bill in identical form, it is sent to the president. The president may
sign the bill, and it will become law. The president may also keep the bill for 10 days without signing it. If
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Congress is in session, the bill will become law without the president’s signature. Most of the time, however,
presidents sign the bills that Congress sends them.
Vetoing Bills
The president can also reject a bill with a veto. In a veto the president refuses to sign the bill and returns it to the
house of Congress in which it originated, along with reasons for the veto. The president may also kill a bill passed
during the last 10 days Congress is in session by refusing to act on it. This veto is called a pocket veto.
Congressional Override of a Veto
Congress can override a president’s veto with a two-thirds vote in both houses. If this happens, the bill
becomes law. It is usually difficult to get the necessary two-thirds vote in both the House of Representatives and
the Senate, so Congress does not override vetoes very often.
Resolutions – Like Bills, but NOT Bills
Now, we must differentiate between bill and resolutions. Congress may pass several types of resolutions to deal
with unusual or temporary matters. Resolutions are not bills but can be very similar.
A simple resolution covers matters affecting only one house of Congress and is passed by that house alone. If a
new rule or procedure is needed, it is adopted in the form of a resolution. Because it is an internal matter, it does
not have the force of law and is not sent to the president for signature.
However, when both houses pass a joint resolution the president’s signature gives it the force of law. Joint
resolutions may correct an error in an earlier law, for example, or appropriate money for a special purpose.
Congress also uses joint resolutions to propose constitutional amendments, which do not require the president’s
signature.
Another type of resolution is a concurrent resolution. Concurrent resolutions cover matters requiring the action
of the House and Senate, but on which a law is not needed. A concurrent resolution, for example, may set the date
for the adjournment of Congress, or it may express Congress’s opinion about an issue. Both houses of Congress
must pass concurrent resolutions. They do not require the president’s signature, and they do not have the force of
law.
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Section 8: Influencing Congress
■How closely should the votes of members of Congress reflect the opinions of their constituents?
■What factors must a member of Congress weigh when deciding whether to support the views of an interest
group or of the president?
Influences on Lawmakers
A great many factors influence a lawmaker’s decisions. One factor is the lawmaker’s personality. Some members
of Congress, for example, are by nature more willing to take risks when making a choice. Sometimes the very
nature of the issue determines the factors that will influence lawmakers most. For example, on a controversial
issue such as the Second Amendment right to own a gun, a lawmaker may pay attention to the voters back home,
no matter what his or her own beliefs may be. On issues that have little direct effect on their home states or
districts, most lawmakers are likely to rely on their own beliefs or on the advice and opinions of other lawmakers.
Congressional staff members also influence lawmakers’ decisions in Congress. They can do this in several ways.
One way is by controlling the information on which lawmakers base their decisions. Another way is by setting the
agendas for individual lawmakers and for congressional committees that may favor a certain point of view. Thus,
many factors affect a lawmaker’s decision on any given issue. Most lawmakers agree that the most important
influences on their decision making are the concerns of voters back home, their own political parties, the
president, and special-interest groups.
The Influence of Voters
The political careers of all lawmakers depend upon how the voters back home feel about lawmakers’ job
performance. Only very unusual lawmakers would regularly vote against the wishes of the people in their home
states or districts.
What Voters Expect
Experienced lawmakers know that their constituents expect them to pay a great deal of attention to their state or
district. Most people expect their representatives to put the needs of their district ahead of the needs of the nation.
What if a conflict arises between what the lawmaker believes should be done and what the people in the district
want? In a national opinion survey, most people said their lawmaker should “follow what people in the district
want.” The voting behavior of most members of Congress reflects the results of this survey. On issues that affect
their constituents’ daily lives, such as civil rights and social welfare, lawmakers generally go along with the
voters’ preferences. In contrast, on issues where constituents have less information or interest, such as foreign
affairs, lawmakers often make up their own minds.
Most voters, however, do not take the trouble to find out how their senators and representatives cast their votes in
Congress. Sometimes voters are not even aware of all the issues lawmakers must decide and vote on. Why, then,
is the way lawmakers vote so important to their chance of reelection? In an election campaign, the candidate from
the other party and opposing interest groups will bring up the lawmaker’s voting record. They may demand that
the lawmaker explain votes that turned out to be unpopular back home. The opposite is also true. A legislator
running for reelection may call attention to his or her votes on certain measures in order to attract constituents’
support. As a result, voters who might otherwise not know how the lawmaker voted are told how well he or she
“paid attention to the folks back home.” As a result, lawmakers try to find out what the voters back home are
concerned about well before an election.
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Visits to the District
Most lawmakers use several methods to try and keep track of their constituents’ opinions. One method is to make
frequent trips home to learn the local voters’ concerns. Senators and representatives make dozens of trips to their
home districts each year. During these trips they will try to speak with as many voters as possible about the issues
concerning them.
Messages From Home
Lawmakers also pay attention to the messages pouring into their offices every day. Staff members screen the
lawmakers’ mail to learn what issues concern voters the most. Not all messages carry equal weight. Most
lawmakers are only interested in messages that come from voters in their district or state or from interest groups
of special concern to them. The form of the message is also important. Sending an e-mail to your lawmaker is one
of the easiest ways to communicate with him or her. So far, however, lawmakers have ranked e-mails as being
less important than other forms of communication. Faxes, form letters, and preprinted postcards are also ranked
low. Congressional offices rate personal letters sent through the mail as most important, followed by visits and
telephone calls.
Surveys and Polls
Many lawmakers send questionnaires to their constituents asking for their opinions on various issues.
Increasingly, lawmakers are using Web sites and e-mail to regularly collect voters’ opinions about key issues. As
an election draws near, lawmakers will often hire professional pollsters to conduct opinion surveys among the
voters of their districts.
Key Supporters
Finally, all lawmakers pay close attention to the ideas of their rain-or-shine supporters—those people who work in
candidates’ campaigns, contribute money, and help ensure reelection. These supporters also help lawmakers keep
in touch with events back home.
The Influence of Parties
Almost every member of Congress is either a Republican or a Democrat. Both political parties generally take
stands on major issues and come out for or against specific legislation. Political party identification is one of the
most important influences on a lawmaker’s voting behavior. In many cases, knowing which political party
members of Congress belong to will help predict how they will vote on major issues.
Party Voting
Both Democrats and Republicans tend to vote with their parties on bills. In the House of Representatives,
members vote with their party more than 70 percent of the time. Senators, who are generally more independent
than House members, are less likely to follow their party’s position. Party voting is much stronger on some issues
than on others. On issues relating to government intervention in the economy, party members tend to vote the
same way. Party voting is also strong on farm issues and fairly strong on social-welfare issues. Party voting is
usually weaker on foreign policy issues because the two parties often do not have fixed positions on international
questions.
The Importance of Parties
Republicans or Democrats vote with their parties because members of each party are likely to share the same
general beliefs about public policy. As a group, Democratic lawmakers are more likely than Republicans to favor
social-welfare programs, job programs through public works, tax laws that help people with lower incomes, and
government regulation of business. In general, Republican members of Congress are likely to support lower taxes,
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less government spending, local and state rather than federal solutions to problems, and policies that support
businesses and corporations and limit government intervention in the economy.
Another reason for party voting is that most lawmakers do not have strong opinions about every issue on which
they vote. They cannot know enough about all the issues to make informed decisions about every bill. Therefore,
they often seek advice on how to vote from fellow party members who know more about an issue than they do.
On some issues, party leaders pressure members to vote for the party’s position. Often, party leaders support the
president’s program if the president is a member of the same party. On the other hand, leaders of the opposing
party may vote against the president’s program and seek to turn such opposition into a political issue.
Congressional party leaders such as the Senate majority leader or the Speaker of the House usually use the power
of persuasion. These leaders do not expect to get their way all the time. But they do work hard to influence
lawmakers to support the party’s position on key issues. Gaining the support of party members is one of the main
jobs of a party leader. Very few issues are unaffected by political party affiliation.
Other Influences on Congress
Although voter preferences and political parties strongly influence the decisions of lawmakers, two other
influences are often equally strong: the president and interest groups.
The Influence of the President
All presidents try to influence Congress to pass the laws that the president and his party support. Some presidents
work harder than others at gaining support in Congress, and some are more successful in getting Congress to pass
their programs. Members of Congress have often complained that presidents have more ways to influence
legislation and policy than do lawmakers. Presidents can appear on television to try to influence public opinion
and put pressure on Congress. Presidents may also use their powers to influence individual members of Congress.
They can give or withhold support of lawmakers. Since the early 1900s, many presidents have tried to increase
their influence over Congress and the lawmaking process, and they have succeeded. In more recent years
Congress has taken steps to limit the president’s influence, letting Congress remain a more autonomous legislative
body.
The Influence of Interest Groups
The representatives of interest groups, called lobbyists, are another important influence on Congress. Lobbyists
try to convince members of Congress to support policies favored by the groups they represent. Their efforts to
persuade officials to support their point of view are called lobbying. The largest and most powerful lobbies have
their own buildings and full-time professional staffs in the nation’s capital. Lobbyists represent a wide variety of
interests such as business organizations, labor unions, doctors, lawyers, education groups, minority groups, and
environmental organizations. In addition, lobbyists work for groups that sometimes form to support or to oppose a
specific issue. Lobbyists use various methods to influence members of Congress. They provide lawmakers with
information about policies they support or oppose. They visit lawmakers in their offices or in the lobbies of the
Capitol and try to persuade them to support their position.
Political Action Committees
Some observers believe that the importance of individual lobbyists has declined in recent years as political action
committees, known as PACs, have dramatically increased in number and influence with lawmakers. PACs are
political fund-raising organizations established by corporations, labor unions, and other special-interest groups.
PAC funds come from voluntary contributions by employees, stockholders, and union members. A PAC uses its
funds to support lawmakers who favor the PAC’s positions on issues.
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Section 9: Taxes and Spending
■How does the income tax compare with other sources of federal revenue in terms of the amount collected?
■How does the federal government use tax laws to affect economic decisions?
■How do the executive and legislative branches work together to produce an annual budget for the federal
government?
■Why is it so difficult for the federal government to reduce spending or raise taxes in order to balance the
budget?
■What is the difference between fiscal policy and monetary policy?
■What are the four major categories of federal government spending?
Taxes as a Source of Revenue
Benjamin Franklin once said, “In this world, nothing is certain but death and taxes.” Taxes are payments by
individuals and businesses to support the activities of government. Today taxes are the chief way the federal
government raises money.
Individual Income Tax
The individual income tax is the federal government’s biggest single source of revenue. About 50 cents of every
dollar the government collects comes from this source. In a recent year, the individual income tax produced
almost $850 million. The federal income tax is levied on a person’s taxable income, or the total income of an
individual minus certain deductions and personal exemptions. The government also permits personal exemptions
that reduce the amount of income that is taxable. Such exemptions are based on the number of people who are
dependent on the wage earner who pays the income tax. A dependent is one who depends primarily on another
person for such things as food, clothing, and shelter.
The income tax is a progressive tax, one based on a taxpayer’s ability to pay. The higher a person’s taxable
income, the higher the tax rate. People with higher incomes, however, can often take advantage of deductions that
lower their taxes. The deadline for filing income tax returns each year is April 15. During the year employers
withhold a certain amount of money from the workers’ wages. This withholding pays the anticipated taxes ahead
of the April 15 filing date. Self-employed people—including business owners, trades-people, and professionals—
who do not receive regular salaries are expected to file estimates of their income four times a year and make
payments with each estimate. The Internal Revenue Service (IRS), a bureau of the United States Treasury
Department, collects these taxes. They audit, or check more closely, a small percentage of returns each year. The
IRS also investigates many suspected criminal violations of the tax laws each year.
Corporate Income Tax
Corporations, as well as individuals, must pay income taxes. The federal government taxes all the earned income
of a corporation beyond its expenses and deductions. Corporate income taxes represent about 10 percent of
federal government revenues. Nonprofit organizations such as colleges, labor unions, and churches are exempt
from this tax.
Social Insurance Taxes
The federal government collects huge sums of money each year to pay for Social Security, Medicare, and
unemployment compensation programs. The taxes collected to pay for these major social programs are called
social insurance taxes. Employees and employers share equally in paying the tax for Social Security and
Medicare. Employers deduct it directly from each worker’s paycheck, add an equal amount, and send the total to
the federal government. The unemployment compensation program is a combined federal-state operation financed
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largely by a federal tax on the payrolls of businesses. These taxes are regressive taxes because people with lower
incomes usually pay a larger portion of their income for these taxes than do people with higher incomes.
Excise Taxes
Taxes on the manufacture, transportation, sale, or consumption of goods and the performance of services are
called excise taxes. Today the government imposes excise taxes on gasoline, oil, cigars, cigarettes, liquor, airline
tickets, long-distance telephone service, and many other things. Some excise taxes are called luxury taxes because
they are levied on goods such as cigarettes and liquor not considered to be necessities.
Customs Duties
Taxes levied on goods imported into the United States are called customs duties, tariffs, or import duties. The
federal government imposes customs duties to raise revenue or to help protect the nation’s industries, businesses,
and agriculture from foreign competition. A high customs duty is called a protective tariff. Many business, labor,
and farm groups support protective tariffs because they raise the price of foreign goods, making them less
competitive compared to American goods on the domestic market. The Constitution gives Congress the authority
to levy customs duties on many imported items. Congress can decide which foreign imports will be taxed and at
what rate.
Taxes and the Economy
The tax laws in the United States are very complex and can affect actions of citizens. The federal government
sometimes uses taxes to influence economic decisions. For example, individual income tax deductions for home
mortgage interest provide an incentive for home ownership and aid the construction industry. Many people
believe that provisions, or tax exemptions, favoring certain groups are unfair. These exemptions are often referred
to as tax loopholes. Some people can afford to hire attorneys and tax specialists who can find loopholes in the
complicated tax laws. People in high-income brackets have used strategies such as declaring business losses or
investing in tax shelters to avoid paying taxes.
Borrowing for Revenue
In addition to collecting taxes, the federal government borrows money. The government borrows by selling
federal securities—financial instruments that include bonds, notes, and treasury bills. Federal government
securities are popular with investors because they are safe and interest may not be taxable. The most popular
bonds for small investors are savings bonds. In return for lending the government money, investors earn interest
on their bonds. The federal government pays a huge amount of interest.
The National Debt
When the government’s spending is greater than its income, it runs a deficit. Government borrowing to fund
annual budget deficits over time creates the national debt. The size of the national debt affects the federal budget
and the economy.
Preparing the Federal Budget
Today, the federal budget enables the government to predict and control revenue and spending for each year. The
federal budget operates in a fiscal year—a 12- month accounting period that extends from October 1 of one year
to September 30 of the next year. The budget is an important policy document. It reflects the federal
government’s view of the nation’s needs and priorities. By showing how much will be spent on various national
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concerns such as defense and social welfare, it serves as a blueprint for the federal government’s spending. The
executive and legislative branches share in the preparation of the budget—an example of checks and balances at
work. Under the president’s leadership, the executive branch draws up a proposed budget. Congress uses the
president’s budget as a basis for preparing a tax and spending plan to submit back to the president.
Drawing Up the President’s Budget
The president is responsible for directing the preparation of the budget and making the major decisions about
national budget priorities. The president proposes to Congress the budget for the entire federal government each
fiscal year. This budget must be delivered within 15 days after Congress convenes each January. The actual dayto-day preparation of the budget is the responsibility of the Office of Management and Budget (OMB). The
OMB, along with the president’s Council of Economic Advisers (CEA), confers with the president on a wide
range of budgetary matters.
Start of the Process
Budget making begins in early spring for the budget that is to go into effect a year from the following October.
Each federal agency draws up a list of its own spending plans and sends these requests to the OMB.
The president and economic advisers discuss such questions as: Will the budget increase or reduce federal
spending? Which federal programs will be cut back and which will be expanded? Will the federal government
need to borrow more money? Should taxes be raised or lowered?
Agencies Review Their Budgets
Over the next few months, the executive departments and agencies work on detailed budget plans fitting the
president’s guidelines. During this time OMB officials and agency heads negotiate cuts and additions to bring
each agency’s budget in line with the president’s decisions.
Final Presidential Review
Sometime during the fall, the OMB submits a complete budget document to the president for final review and
approval. By winter, the president formally sends the budget to Congress along with an annual budget message.
Congress then takes the next steps in working out the federal budget.
Uncontrollables
Despite having a key role in the budget process, the president does not have complete freedom in making
budgetary decisions. About 70 percent of the federal budget consists of what are called uncontrollables.
Uncontrollables are expenditures required by law or resulting from previous budgetary commitments. A large
portion of the uncontrollables are called entitlements, or benefits that Congress has provided by law to
individuals, and which they have an established legal right to receive. Entitlements include Social Security,
pensions for retired government employees, Medicare, Medicaid, and veterans’ benefits. Another largely
uncontrollable item in the budget is the interest that must be paid on the national debt.
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Congressional Budget Action
Article I, Section 9, of the Constitution requires that Congress approve all federal spending. Thus, the president
draws up budget proposals, but only Congress has the power to raise revenue and pass appropriations. No money
may be spent and no taxes may be collected until Congress approves. Congress may revise the president’s budget
proposals as it sees fit. Conflict between Congress and the president over the budget is inevitable.
The Congressional Budget Office’s (CBO) job is to carefully evaluate the overall federal budget for Congress.
The CBO has its own professional staff of experts. They report to Congress and act as a counterbalance to the
OMB in the executive branch.
Key Steps in Congressional Budget Making
The budget-making process generally follows three steps. First, House and Senate Budget Committees review the
major features of the president’s budget proposals. On April 15 these committees prepare a concurrent resolution.
With the president’s proposals as a starting point, this resolution sets forth the total federal spending and tax plan
for the coming fiscal year. The next step, called reconciliation, occurs between April 15 and June 15. During
reconciliation various House and Senate committees reconcile, or fit, the spending and taxing plans set out in the
concurrent resolution with existing programs. The committees put the changes made during this process into a
reconciliation bill that both the House of Representatives and Senate must vote on and approve. The House then
passes an appropriations bill, officially setting aside money for all expenditures approved through the
reconciliation process.
Incremental Budget Making
Some analysts use the term Incrementalism to explain the budget-making process. Incrementalism means that
generally the total budget changes only a little (an increment) from one year to the next. Thus, the best forecaster
of this year’s budget is last year’s budget, plus a little more. Incrementalism means that usually federal agencies
can assume they will get the same amount of money they received in the previous year. Incrementalism also
means that most budget debates focus on a proposed increment or reduction for an agency.
Where the Money Goes
The federal government was spending about $4.6 billion a year when Franklin D. Roosevelt became president in
1933. Today, that amount would pay for less than one day of the federal government’s expenditures. The
government currently spends more than $2 trillion a year. How can a person imagine such a large amount of
money? Perhaps it is more meaningful to break the total amount down into its four major components. In addition
to interest on the national debt, the main spending items are direct benefit payments to individuals, national
defense, and discretionary spending.
Direct Benefit Payments
Spending for Social Security and social-welfare and health-care programs has become a big part of the federal
budget. Almost half of every dollar spent goes for such items. In a recent budget, the federal government allocated
about $960 billion for direct benefit payments of one kind or another. Uncontrollable expenditures account for a
large portion of this budget item. The biggest entitlement program is Social Security.
National Defense
Spending for national defense was one of the biggest items in the budget beginning with World War II. The
Clinton administration reduced the share of the budget that goes to defense. In 1996 defense spending represented
about 17 percent of total outlays, down from 22 percent in 1992. By the 2000 election, many people felt that
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defense spending had been reduced too much. President George W. Bush fulfilled a campaign promise to increase
spending for the military. In 2001 the defense budget increased by over $11 billion. The military response
following the September 11, 2001, terrorist attacks against the United States demanded more increases. By 2003
the defense budget had increased by $81 billion from its 2000 figure. Barack Obama worked with Pentagon
officials to significantly reduce defense spending, but it is still a significant part of the federal budget.
Discretionary Spending
The federal government spends a sizable portion of tax revenues on the environment, transportation, criminal
justice, and other areas. Much of this discretionary spending is in the form of grants to states and localities. State
and local governments use federal grants for road repair, public housing, police training, school lunch programs,
flood insurance, and so on.
Fiscal and Monetary Policy
Beginning with the Great Depression of the 1930s, the federal government has taken an increasing role in
managing the nation’s economy. Arguments continue over just how large a part the government should play.
Debates arise because, in the modified free-enterprise system, control over the economy is divided between
government and the private sector—individuals and businesses. The government uses two primary devices to
influence the direction of the economy: (l) fiscal policy and (2) monetary policy. Fiscal policy involves using
government spending and taxation to influence the economy. Monetary policy involves controlling the supply of
money and credit to influence the economy.
Fiscal Policy
The federal budget is a major tool of fiscal policy because it shapes how much money the government will spend
and how much it will collect through taxes and borrowing. The president and Congress can use the budget to
pump money into the economy to stimulate it, or to take money out of the economy to slow it down. To stimulate
the economy, the government may spend more money than it takes in. Another way that the government can
stimulate the economy is through reducing taxes. When the government increases spending or reduces taxes, it is
likely to run a deficit because it must spend money that it does not have. Since the 1930s the United States has
had deficit, or unbalanced, federal budgets most of the time.
Monetary Policy
The Constitution gives the national government authority to “coin money [and] regulate the value thereof.”
Today, the federal government tries to regulate the economy through its monetary policy. Monetary policy
involves controlling the supply of money and the cost of borrowing money— credit—according to the needs of
the economy. The government controls the money supply through the Federal Reserve System.
The Federal Reserve System
The Federal Reserve System, known as the Fed, is the central banking system of the United States. When
people or corporations need money, they may borrow from a bank. When banks need money, they may go to the
Fed. Thus, in reality, the Federal Reserve System is a banker’s bank.
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Section 10: Social and Domestic Policy
■What are the overall aims of United States business policy regarding competition and consumers?
■What is the purpose of Social Security, and how does it operate?
■What steps has the federal government taken to support public education, transportation, and the environment?
Promoting and Protecting Business
Although free enterprise is the foundation of the American economic system, ours is a mixed economy—a
system in which the government both supports and regulates private enterprise.
Free Trade
In recent years the federal government has emphasized lower tariffs and promoted free trade for many items. The
United States plays a leading role in promoting free trade around the world. Consumers benefit from the lower
cost of many imported goods. Although current rates are at an all-time low, tariffs are still used to protect
American industries from foreign competition.
Types of Federal Subsidies
Today the federal government provides four types of subsidies, or aids to business. One is tax incentives that
allow businesses to deduct certain expenses from their annual tax returns. A second is government loans, or credit
subsidies, that provide funds for businesses at low interest rates. A third type of subsidy is free services, such as
weather information, census reports, and other information valuable to businesses across the nation. Finally, the
government provides direct cash payments to businesses whose products or services are considered vital to the
general public. Businesses in the field of transportation often receive this type of subsidy.
Regulating Business
Constitutional Basis of Regulation
The Constitution grants Congress the power to “lay and collect taxes” for the general welfare and to “regulate
commerce . . . among the several states.” Most regulatory laws enacted in the twentieth century are based upon
these two powers. The commerce clause in Article I, Section 8, provides the primary constitutional basis for
government regulation of the economy.
Demand for Reform
Until the late 1800s, the federal government for the most part took a hands-off, or laissez-faire, approach to the
economy. The states passed the few regulations that limited business activities. Businesses were generally small,
locally owned, and primarily served local markets. By the late 1800s, the American economy had changed. Huge
corporations dominated American industry. Rapid industrialization was accompanied by many abuses. Business
combinations consolidated control of several industries in the hands of a few giant corporations that squeezed
smaller companies out of business. Because of these abuses, Americans began to demand government regulation
of business. Congress responded by passing the Interstate Commerce Act in 1887. This act established the first
federal regulatory agency, the Interstate Commerce Commission (ICC).
Consumer Protection Laws
Before 1900 many corporations were not overly concerned about whether their products were healthful or safe.
Some truly deplorable practices were common in the food processing and drug industries. Some companies
mislabeled foods and sold foods contaminated by additives. Other foods such as meat were tainted because of the
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unsanitary conditions in processing plants. Consumers were duped into buying medicines that were often
worthless and sometimes dangerous. The Food and Drug Administration (FDA) is responsible for protecting
the public from poorly processed and improperly labeled foods and drugs. If a product fails to meet FDA
standards, the FDA may force it off the market. The Federal Trade Commission (FTC) protects consumers
from misleading and fraudulent advertising. The FTC has the power to review the advertising claims made about
all products sold in interstate commerce. It may determine whether an advertisement for a product is false or
unfair. If it is, the FTC can order a company to change the ad to comply with FTC standards. According to
another FTC regulation, all manufacturers must clearly list the contents of packaged products on the label.
Congress created the Consumer Product Safety Commission (CPSC) in 1972 to protect consumers against
“unreasonable risk of injury from hazardous products.” To reduce consumer risks, the CPSC investigates injuries
caused by merchandise, such as lawn mowers, kitchen appliances, toys, and sports equipment. It then establishes
standards of safety for each type of consumer product. If any product fails to meet these standards, the CPSC can
order it off the market.
Regulating the Sale of Stocks
The Securities and Exchange Commission (SEC) has regulated the trading of securities, or stocks and bonds,
since its creation during the Great Depression. Today the SEC regulates the nation’s securities issued by public
utility companies and requires all corporations that issue public stock to file regular reports on their assets, profits,
sales, and other financial data. These reports must be made available to investors so that they may judge the true
value of a company’s stock offerings.
Government and Labor
The first nationwide union was organized in the 1850s. Workers organized unions and elected leaders to represent
them in negotiations with employers for labor contracts that specified wages, hours, and working conditions. The
practice of negotiating labor contracts is known as collective bargaining. Employers generally refused to
negotiate with unions. As a result, unions often resorted to strikes to try to obtain concessions. For many years,
the government favored business over labor unions. Federal troops and state militia broke up some strikes. The
government’s attitude toward labor began to change in the early 1900s. Today laws set minimum wages and
maximum working hours and prohibit child labor. In addition, the Department of Labor provides employment
offices and job training programs for people in search of a job, collects helpful data, and offers unemployment
insurance.
The Federal Government and the Farmer
Despite the transition from a rural to an urban nation, the federal government has strongly encouraged American
agriculture. Because farming is so vital to the nation, governments at the federal, state, and local levels provide
support and assistance to farmers. The Department of Agriculture provides many services to farmers. The chief
functions are to help farmers market their produce, stabilize farm prices, conserve land, and promote research in
agricultural science.
Protecting the Environment
For many years the federal government did not set environmental policy. State and local governments developed
few controls over air, water, land, and other natural resources. In 1970 Congress issued a series of sweeping
environmental laws. The Environmental Protection Agency (EPA) was created and charged with enforcing a
host of regulations. Today the EPA has strict regulations regarding air and water pollution. As the government
fashioned a new energy policy in the mid-1970s to meet future energy crises (involving oil shortages), people
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began to recognize the costs of a cleaner environment and conflicts among interest groups with different goals.
Americans discovered that preserving clean air might require them to drive cars with pollution-control devices
that made the cars more costly to buy and operate. Oil companies wanted to drill for more offshore oil, while
environmentalists believed that such drilling posed too great a risk to the marine environment.
Social Insurance Programs
Social Security
More than 90 percent of American workers participate in the Social Security system. Employers and employees
contribute to the system equally, while self-employed persons pay their own Social Security tax. Retirees,
survivors, disabled persons, and Medicare recipients are eligible for benefits. Survivors are spouses and children
of deceased people covered by Social Security. Medicare provides health insurance for persons 65 or older.
Medicare
In 1965 Congress added Medicare to the Social Security program. The basic Medicare plan pays a major share of
the total hospital bills for more than 30 million senior citizens.
Unemployment Insurance
The 1935 Social Security Act also set up unemployment insurance programs for people who are out of work.
Under these programs, federal and state governments cooperate to provide the needed help. Workers in every state
are eligible to receive unemployment payments if their employers dismiss them from their jobs. To fund the
program, employers pay a tax to the federal government. Then, when workers are involuntarily laid off, they may
apply for weekly benefits from a state, not a federal, employment office.
Public Assistance Programs
Supplemental Security Income (SSI) brought together under federal control all state programs for the aged, the
blind, and the disabled. The federal government makes a monthly payment to anyone who is 65 or older, who is
blind or disabled, or who has little or no regular income. In addition to SSI, the Food Stamp program helps
millions of lower income Americans each year. The purpose of the food stamp program was to increase the foodbuying power of low-income families and help dispose of America’s surplus agricultural production. Medicaid
was established to help lower income families receive medical care. Medicaid was designed to help pay hospital,
doctor, and other medical bills for persons with low incomes. General federal, state, and local taxes fund this
program. Finally, Aid to Families with Dependent Children was designed to help families in which the main
wage earner died, was disabled, or left the family. A family with dependent children was eligible for AFDC
assistance if its income was too low according to criteria set by the state.
The Need for Reform
Few people denied that society had a responsibility to help care for its disadvantaged, sick, and disabled. At the
same time, for many different reasons few political leaders and citizens were happy with the public assistance
system. Much of the public frustration over the welfare system stemmed from reports of welfare fraud and the
cycle of dependence that developed among many welfare recipients. Many single parents on welfare had few
strong incentives to work. Minimum-wage jobs provided less income than the welfare system, and working often
meant paying additional day care expenses. Congress required states by 1990 to implement welfare-to-work
programs aimed at helping people get off the welfare rolls. The federal government promised to pay a share of the
costs of education and job training.
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Public Education Programs
Today public education in the United States is a huge enterprise. In most states elementary and high school
education remains a local responsibility under state guidelines. The basic administrative unit for public schools is
the local school district. The government’s policy of providing general federal aid to public schools and colleges
has been controversial. Opponents of such aid argue that education should be a state and local concern. They say
federal aid leads to federal control of the curriculum and school systems. In 1983 the National Commission on
Excellence in Education, appointed by President Ronald Reagan, issued its report. On a series of international
tests, United States students generally ranked below their European and Asian peers. The commission called for
many reforms. The excellence movement that sprang from the report had mixed results. The No Child Left
Behind Act also has had mixed results. It established national standards but failed to provide funding to schools
to implement the necessary changes (making it an unfunded mandate). Furthermore, it punishes low-achieving
schools by taking away their federal funding.
Housing and Urban Programs
Adequate housing is an important part of the general welfare of any society. The federal government has
developed several programs to ensure adequate housing for all citizens. The federal government has developed
several programs to promote building and purchasing houses. The best known program is the Federal Housing
Administration (FHA). The FHA, a part of the Department of Housing and Urban Development
HUD), guarantees banks and other private lenders against losses on loans they make to those who wish to build
or buy homes. By acting as an insurer for these mortgages, the FHA has allowed many low- and middle-income
families who might not have qualified for private loans to purchase their own homes. HUD also offers rent
assistance to low-income families. However, critics argue that some of these programs resulted in risky loans
being given to people who would otherwise not have qualified. In addition to mortgage and rent assistance, the
federal government gives aid to local governments to construct and operate public housing for low-income
families. Over the years public housing projects have faced serious problems and opposition from many groups.
Transportation Programs
To deal with national transportation issues, Congress created the Department of Transportation (DOT) to
coordinate national transportation policies and programs. One such program was established with the Federal
Highway Act. Under the Federal Aid Highway Act, states receive billions of dollars every year to build and
improve the Interstate Highway System that crisscrosses the nation. While the federal government provides the
financial aid, the states do the work of constructing and improving the interstate highways.
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