Which is the second phase of the Federal Budget Process?

• A. Phase 3: Budget Execution
• B. Phase 1: Budget Formulation
• C. Phase 2: Congressional Action
• D. Phase 4: Budget Execution

Answer: (C)

The second phase is Congressional Action, where Congress takes up the President’s budget request and produces the authorization and appropriation acts that set funding levels. In this stage, committees review, amend, and mark up budget bills, and both houses vote on them before the President signs or vetoes. This step is what turns policy priorities into funded programs and determines how money will be allocated across agencies and programs. After this action, funds move into the execution phase, where they are obligated and spent, followed by evaluation and accountability.