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ADVANCE APPROPRIATIONS, ADVANCE FUNDING, AND FORWARD FUNDING
I. An advance appropriation is one made to become available one fiscal year or more beyond the fiscal year for which
the appropriation act is passed. Advance appropriations in
fiscal year 2003 appropriations acts will become available for
programs in 2004 or beyond. Since these appropriations are
not available until after fiscal year 2003, the amounts will
not be included in fiscal year 2003 budget totals, but will
be reflected in the budget totals for the fiscal year for which
they are requested.
The Congressional Budget Act of 1974 (31 U.S.C.
1105(a)(17)) requires inclusion in the budget of ‘‘information
on estimates of appropriations for the fiscal year following
the fiscal year for which the budget is submitted for grants,
contracts, and other payments under each program for which
there is an authorization of appropriations for that following
fiscal year when the appropriations are authorized to be included in an appropriation law for the fiscal year before the
fiscal year in which the appropriation is to be available for
obligation.’’ In fulfillment of this requirement, the table below
lists those accounts authorized to receive, in fiscal year 2003,
advance appropriations for fiscal year 2004 and beyond and
cites the authorizing statute. Part A shows the amounts of
advance appropriations included in the 2003 Budget. Part
B shows the accounts for which 2003 or 2004 advance appropriations were provided but for which no new advance appropriations are requested.
Part C of the table completes OMB’s statutory requirements
by providing a listing of accounts for which advance appropriations are authorized but not requested in the 2003 Budget.
A. Accounts for which advance appropriations are included in the
2003 Budget:
Department of Education (20 U.S.C. 1223 and 29 U.S.C. 703):
Education for the disadvantaged: $7,383 million for 2004
School improvement programs: $1,765 million for 2004
Special education: $5,072 million for 2004
Vocational and adult education: $791 million for 2004
Department of Health and Human Services:
Grants to States for medicaid (42 U.S.C. 1396): $51,861 million for 2004
Payments to States for child support enforcement and family
support programs (24 U.S.C. Ch. 9): $1,100 million for
2004
Payments to States for foster care and adoption assistance
(P.L. 96–272): $1,746 million for 2004
Children and families services program (42 U.S.C. 9834):
$1,400 million for 2004
Department of Housing and Urban Development:
Housing certificate fund (42 U.S.C. 1437f): $4,200 million
for 2004
Department of Labor:
Training and employment services (29 U.S.C. 2801 et seq.):
$2,463 million for 2004
Postal Service:
Payment to the Postal Service fund (39 U.S.C. 2401): $31
million for 2004
Social Security Administration:
Special benefits for disabled coal miners (30 U.S.C. 921):
$97 million for 2004
Supplemental security income program (42 U.S.C. 1381):
$11,080 million for 2004
B. Accounts for which 2003 or 2004 advance appropriations were
provided, but for which no new advance appropriations are
requested:
Department of Energy:
Elk Hills school lands fund (P.L. 104–106)

Clean coal technology
Corporation for Public Broadcasting (Communications Act of
1934)
C. Accounts authorized to receive advance appropriations but for
which none were provided and none are requested in the
2003 Budget:
Department of Agriculture:
Food program administration (42 U.S.C. 1752)
Child nutrition programs (42 U.S.C. 1752)
Department of Education (20 U.S.C. 1223 and 29 U.S.C. 703): 1
Impact aid
Indian education
English language acquisition
American Printing House for the Blind
National Technical Institute for the Deaf
Gallaudet University
Rehabilitation services and disability research
Student financial assistance
Federal family education loans
Federal direct student loan program
Higher education
Higher education facilities loans
College housing and academic facilities loans
Howard University
Historically black college and university capital financing
program
Education research, statistics, and assessment
1 These statutes erroneously refer to ‘‘advance funding.’’ Since these statutes describe
and clearly intend to provide advance appropriations, the affected accounts are listed here.

II. Advance funding is budget authority that is to be
charged to the appropriation in the succeeding year but which
authorizes obligations to be incurred in the last quarter of
the fiscal year if necessary to meet higher than anticipated
benefit payments in excess of the specific amount appropriated for the year. When such budget authority is used,
an adjustment is made to increase the budget authority for
the fiscal year in which it is used and to reduce the budget
authority of the succeeding fiscal year. Essentially, this is
a device for avoiding supplemental requests late in the fiscal
year for certain programs, should the appropriations for the
current year prove to be low. The table below lists those
accounts for which advance funding authority is requested
in the 2003 Budget.
Department of Labor:
Special benefits
Federal unemployment benefits and allowances

III. Forward funding is budget authority that is made available for obligation beginning in the last quarter of the fiscal
year for the financing of ongoing grant programs during the
next succeeding fiscal year. The budget authority for such
programs is included in the budget totals for the year in
which it is appropriated. This device is often used for education programs, so that grants can be made on a school
year basis. The language providing forward funding for education programs will specify that amounts appropriated, in
most but not all cases, will not be available until some time
into the year of the appropriation (e.g., July 1, 2003) and
in most cases will specify that such amounts will remain
available until the end of the succeeding fiscal year. In other
cases (e.g., Federal Pell grants), the funds become available
on October 1st but are not normally obligated until July 1st
or later and are available for obligation for an additional
year. The table below lists those accounts for which forward
funding exists or is requested in whole or in part in the
2003 Budget.
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THE BUDGET FOR FISCAL YEAR 2003

the following fiscal year. For most other training and employment programs, forward funding provides appropriations for
a program year that starts on July 1st of the fiscal year
of the appropriation. Financing extends through June 30th
of the following fiscal year. Program years are authorized
for training programs under the Workforce Investment Act
and operation of the State Employment Service under section
6 of the Wagner-Peyser Act. The table below lists accounts
for which forward funding is requested in the 2003 Budget.

Department of Education:
Education for the disadvantaged
School improvement programs
Special education
Vocational and adult education
Student financial assistance
Educational research, statistics, and assessment
English language acquisition
Department of the Interior:
Operation of Indian programs

In the training and employment area, forward funding for
youth training grant programs provides appropriations for a
program year that starts on April 1st of the fiscal year of
the appropriation. Financing extends through June 30th of

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Department of Labor:
Training and employment services
State unemployment insurance and employment service operations
Veterans employment and training

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Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102