Government Contracting by — Appropriation Type

One-year appropriations are the most common type, available for obligation only during the fiscal year for which they are enacted (October 1 through September 30). These funds must be obligated before the end of the fiscal year or they expire, creating the well-known year-end spending surge as agencies race to obligate remaining balances.

When Congress fails to pass regular appropriations by October 1, a continuing resolution (CR) provides temporary funding authority, typically at the prior year's level or a specified rate. CRs create significant contracting disruption because agencies cannot start new programs, increase spending rates, or enter into new multi-year contracts during a CR.

After the period of availability ends, annual and multi-year appropriations enter a 5-year "expired" phase where no new obligations can be made but existing obligations can be adjusted (upward within the original amount or downward). After the 5-year expired phase, remaining balances are cancelled and returned to Treasury.

Multi-year appropriations are available for obligation over a specified period longer than one fiscal year but not indefinitely. Congress designates the period of availability in the appropriation language (e.g., "to remain available until September 30, 2028"). These funds provide agencies flexibility for programs that span multiple years.

No-year appropriations remain available for obligation indefinitely until the funds are fully expended or Congress rescinds them. Designated in appropriation language as "to remain available until expended," these funds give maximum flexibility for long-duration programs like construction projects, disaster relief, and trust fund expenditures.

Revolving funds operate on a business-like model where the fund charges customers (other agencies) for goods and services, and the revenue replenishes the fund for future operations. These funds are not dependent on annual appropriations after initial capitalization, allowing them to operate continuously as working capital entities.

Working capital funds are a type of revolving fund that finances shared services within an agency — IT support, accounting, human resources, facilities management, and procurement operations. Each agency component is charged for services consumed, and the fund uses revenue to sustain operations without annual appropriation.

Trust funds hold money collected from dedicated revenue sources (taxes, fees, penalties) for specific purposes defined by statute. Unlike general fund appropriations, trust fund receipts come from earmarked sources and must be spent on the designated purpose. Some trust funds require annual appropriation to spend; others have permanent authority.