The federal government operates on a fiscal year cycle, which starts on October 1 and continues to midnight September 30. SSA begins development of its fiscal year appropriation request 21 months before the fiscal year begins. Approximately 17 months before the beginning of the fiscal year, an estimate of what the Disability Determination Services (DDS) will obligate for the fiscal year is built into the appropriation request.

Approximately 9 months prior to the start of the fiscal year, the SSA budget becomes a part of the President's budget submitted to Congress. The President's budget undergoes the Congress' legislative authorization process (subcommittees, hearings, etc.).

When Congress passes SSA's appropriation timely, SSA receives its annual funding allocation prior to October 1. The Office of Budget (OB) issues an allotment advice prior to October 1 to Disability Adjudication (DA). This allotment provides funding for DDS operations. DA issues a funding allocation to each DDS. Under this process, the amount of the funding allocation for each DDS is determined based on the submission and review of the DDS Annual Spending Plan. For instructions on preparing the DDS Spending Plan, see PM 00203.000.

Continuing resolutions are signed into law to permit budget authority to Federal departments and programs until regular appropriations acts are enacted. Generally, when operating under a continuing resolution, funding is restricted to no higher than the rate of spending demonstrated in the last quarter of the previous fiscal year.

When operating under a continuing resolution, the OB provides an advisory national funding level to DA for interim DDS planning based on the latest budget review and consistent with recent experience. This advisory figure reflects the level of probable funding that will be available for DDS operations through the period covered by the continuing resolution.

Actual funding of DDS operations will depend on the amount of funds available to SSA and the period of time for which SSA is able, by law, to obligate funds. In the absence of an annual budgetary allocation, SSA will not be able to provide the DDS the authority to obligate funds beyond the time or spending limitation required by any continuing resolution of Congress.

If Congress fails to pass regular appropriations or continuing resolutions or if the President fails to sign or vetoes any type of appropriations legislation, non-essential activities of the Federal government may be forced to cease for lack of budget authority.