New spending authority

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The term new spending authority was originally defined in section 401(c) of the Congressional Budget Act of 1974. It was deleted as a discretely defined term by the Budget Enforcement Act of 1997. 

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Section 401(c) of the Congressional Budget Act (as Enacted)

(c) Definitions.—

(1) For purposes of this section, the term “new spending authority” means spending authority not provided by law on the effective date of this section, including any increase in or addition to spending authority provided by law on such date.

(2) For purposes of paragraph (1), the term “spending authority” means authority (whether temporary or permanent) —

(A) to enter into contracts under which the United States is obligated to make outlays, the budget authority for which is not provided in advance by appropriation Acts;

(B)[1] to incur indebtedness (other than indebtedness incurred under the Second Liberty Bond Act) for the repayment of which the United States is liable, the budget authority for which is not provided in advance by appropriation Acts; and

(C) to make payments (including loans and grants), the budget authority for which is not provided for in advance by appropriation Acts, to any person or government if, under the provisions of the law containing such authority, the United States is obligated to make such payments to persons or governments who meet the requirements established by such law.

Such term does not include authority to insure or guarantee the repayment of indebtedness incurred by another person or government.

Note: This section was originally classified to the U.S. Code at the former 31 U.S.C. 1351. Section 401 is now codified at 2 U.S.C. 651. 

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