In federal budgeting, an allotment is an internal control tool. After the Office of Management and Budget (OMB) apportions an agency’s budget authority, the head of each agency (or a delegated official) allots that authority to subordinate offices, bureaus or programs. An allotment sets a specific dollar limit that those offices may obligate, ensuring that spending stays within the amounts apportioned and helping managers pace obligations over the year.
Official Definition
According to the GAO’s Federal Budget Glossary, an allotment is:
"An authorization by either the agency head or another authorized employee to his or her subordinates to incur obligations within a specified amount." GAO notes that each agency establishes allotment procedures in accordance with OMB guidance and that the amount allotted by an agency cannot exceed the amount apportioned by the Office of Management and Budget.
Source: GAO – A Glossary of Terms Used in the Federal Budget Process
USSGL Accounts
Definitions for allotment-related USSGL accounts (461000 and 465000) are available in Treasury’s USSGL guidance.
461000 – Allotments – Realized Resources
This account is used to record the current-period amount of budget authority that an agency has internally allotted and that is available to incur obligations or commitments. When this account is credited, it reflects the distribution (allotment) of budget authority available for use. This account does not close at year-end.
465000 – Allotments – Expired Authority
This account records the amount of unobligated appropriation authority from prior years that has expired and is no longer available for new obligations. These expired allotments may only be used to adjust existing obligations (such as deobligations or upward adjustments) and cannot fund new obligations.
What This Means in Practice
• Agency funds-control: After Congress appropriates money and OMB apportions it, the agency’s CFO allots specific amounts to internal offices or programs. These allotments become the spending ceilings for each office.
• Pacing obligations: Because allotments cannot exceed the amounts apportioned, managers must plan obligations so that the agency does not exceed its apportioned (and ultimately appropriated) budget authority.
• Adjustments when authority expires: When an appropriation expires, any remaining unobligated allotments are moved to Allotments – Expired Authority (465000) and may be used only to adjust existing obligations.
Simple Example
Your agency receives a $20 million annual appropriation for FY 2026. OMB apportions the authority by quarter: $5 million each quarter. The agency then issues allotments to individual offices: the IT office receives $2 million for the first quarter, the HR office receives $1 million, and the remaining $2 million is distributed among other programs. Each office may incur obligations up to its allotment, but not beyond it. As Allotments are recorded,Treasury Transaction Code A120 is recorded: debit Apportionments (451000) and credit Allotments – Realized Resources (461000).
Common Mistakes or Confusion
• Confusing allotments with apportionments: An apportionment is issued by OMB and limits obligations by time period or program. An allotment is an agency-level subdivision of that apportionment. You cannot allot more than has been apportioned.
• Ignoring expiration: Unobligated allotments do not carry forward forever. Once the underlying appropriation expires, any remaining allotment becomes expired authority (account 465000) and can only adjust existing obligations; it cannot fund new ones.
• Not updating allotments after reapportionment: If OMB reapportions budget authority (for example, shifting authority between quarters), agencies must update their allotments accordingly to ensure they remain within the apportioned amounts.
Where You’ll See This Term Used
You’ll commonly see allotments used in:
• Internal funds-control documents
• OMB Circular No. A-11 guidance
• Statement of Budgetary Resources
Want to go deeper?
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