4.1 Budget Function Classification

The federal budget is categorized around functions, which have the following purpose (GAO, 1998):

…categorize federal spending according to the purpose or mission of government…

Budget functions are not administrative departments. That is, one function can be associated with multiple departments such as national defense is in the Department of Defense (DOD) and the Department of Energy (among others). It is also possible to have one department and multiple functions. For example, the DOD is responsible for national security and natural resources and environment (given the large area of land occupied by military bases). The structure of the budget resolution is around 20 functions of which 17 are labeled as broad areas of national need and three are labeled as miscellaneous (e.g., interest payments on federal debt). Examples:

• Community and Regional Development: (1) Community development, (2) area and regional development, and (3) disaster relief and insurance
• Energy: (1) Energy supply, (2) energy conservation, (3) emergency energy preparedness, and (4) energy information, policy, and regulation
• General Science, Space and Technology: (1) General science and basic research and (2) space flight, research, and supporting activities