Suspension of Budget Enforcement Procedures During Hostilities Abroad [Updated July 27, 2001] [open pdf - 55KB]
"Federal budget policies are enforced by two major statutes-the Congressional Budget Act of 1974 and the Balanced Budget and Emergency Deficit Control Act of 1985. The first act establishes the congressional budget process; the second act establishes discretionary spending limits and a 'pay-as-you-go' (PAYGO) requirement, enforced by sequestration. [...] During the years that these suspension provisions have been available, the United States has been involved in several instances of armed hostilities abroad, including the Persian Gulf War, but budget enforcement procedures were not suspended in any of these instances because no declaration of war was enacted. Congress and the President met the additional spending needs associated with these hostilities largely by using procedures that allow such spending to be declared 'emergency requirements,' thus freeing it from budget enforcement constraints."
CRS Report for Congress, RS20182