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The federal budget process is a total mystery to most people. Its complicated and lasts more than 18 months. But its not that hard to understand the basics. Heres how it works in three steps. Step 1: the White House releases a budget request. The Presidents budget is usually issued in February, and contains a full set of funding proposals. Where do these come from? Almost a year before this, agencies like NIH or NASA must come up with their own initial budget plans. Before the White House can submit a budget to Congress, the agencies have to submit their budgets to the White House. The White House can hand out spending directives and negotiate with agencies before approving their final budgets. Does the Presidents budget matter? Only as much as Congress allows it to. As FDR once said, the President proposes, and the Congress disposes. For example, President Obama regularly sought increases for NIH, but often failed to obtain them. On the other hand, Congress was willing to fund sp