Cyclopedia

Obligation Limitation

Summary

An obligation limitation is a modifier that is may be added to budget authority, which gives additional conditions to the ability otherwise included in the ability of a Federal agency to make legal commitments on the part of the Federal Government. Usually used in the area of appropriations law, and further obligation limitations are most commonly used in conjunction with budget authority provided for transportation projects.

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Glossary of the Congressional Budget Office

Obligation Limitation [CBOO]

A provision of a law or legislation that restricts or reduces the availability of budget authority that would have become available under another law. Typically, an obligation limitation is included in an appropriation act. The limitation may affect budget authority provided in that act, but more often it affects direct spending that has been provided in an authorization act. Generally, when an appropriation act routinely places an obligation limitation on direct spending, the limitation is treated as a discretionary resource, and the associated outlays are treated as discretionary spending.

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GAO Glossary of Terms and Definition (September 2005)

Obligation Limitation [GAO]

See under Limitation.

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