Cyclopedia of Congressional Budget Law
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Liquidating Appropriation
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Summary
Congress may make an appropriation that grants authority to draw money from the Treasury but does not grant budget authority. Such an appropriation is known by a more specific term. For example, a “liquidating appropriation” provides authority to draw money from the Treasury to satisfy obligations incurred pursuant to contract authority (discussed in the next sub-section). A “deficiency appropriation” provides authority to satisfy obligations that exceeded an agency’s available budget authority. The word “appropriation” appearing alone nearly always refers to a provision of law that grants both budget authority and authority to make payments from the Treasury.
[From GAO Principles of Appropriations Law, Volume II]
GAO Glossary of Terms and Definition (September 2005)
Liquidating Appropriation
An appropriation to pay obligations incurred pursuant to substantive legislation, usually contract authority. A liquidating appropriation is not recorded as budget authority.
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