What is a Blanket Appropriation?

A blanket appropriation is a set-aside of funds for which there is no specification for how the funds are to be used. A manager receiving a blanket appropriation can spend the funds at his or her own discretion. The blanket appropriation concept is mostly confined to government spending, though it is also used in companies for expenditures on smaller projects that can be completed without a great deal of senior management oversight.

The use of blanket appropriations should be restricted or at least tightly monitored, since there is a risk that funds allocated in this manner will be improperly used.

Example of a Blanket Appropriation

A state government sets aside $50 million that is targeted at overhauling aged bridges, without specifying which bridges are to be targeted. This allows the state’s bridge inspection unit to create a rank ordering of bridges in the worst condition, and allocate the bulk of the funds to those bridges at most risk of catastrophic failure.