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Investor Dictionary · 758 terms
Definition

Appropriations

What are "appropriations"? What is the definition of the term "appropriations" as it pertains to federal budgets?
An "appropriation" is money that has been set aside for a certain purpose via a "formal action" (legislative act).

Definition of Appropriations - FinanceFor example - let's say that the US federal government plans on creating a new organization that will oversee computer security in the country. A piece of legislation is signed that will create an annual budget of $400 million for this new organization. This would be an "appropriation", as $400 million is being set aside for this new initiative via a piece of legislation.

According to Senate.gov, an "appropriations committee" is responsible for "approving expenditures made from the Federal Treasury".