What is Appropriation?

Definition and meaning of appropriation: Appropriation is the process of allocating funds for specific governmental or organizational purposes. In the context of American politics, appropriation provides government agencies with the authority to allocate funds for specific purposes. Each year, Congress passes twelve appropriation acts, in addition to supplemental appropriation acts. Appropriations may be a definite or indefinite amount. 

Appropriations are categorized into several types, including annual, multi-year, no year, expired, closed, and revolving funds. Annual appropriations are provided for a single fiscal year, while multi-year appropriations are available for a specified period beyond one year. No-year appropriations remain available until they are expended or rescinded. Expired appropriations are no longer available for new obligations but can be used to pay existing commitments. Closed appropriations are funds that are no longer available for any purpose, typically after five years. Revolving funds are a type of appropriation used for continuous, cyclical operations where the income generated is used to fund ongoing expenses.