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.

Characteristics of a Blanket Appropriation

Here are the key characteristics of a blanket appropriation:

Broad allocation. Funds are authorized for a general category of expenditure rather than specific line items. For example, allocating a lump sum for "disaster relief" rather than itemizing amounts for food, shelter, and medical supplies.
Flexibility in use. The receiving entity (agency, department, etc.) has significant latitude in determining how to spend the funds within the appropriation's general purpose. This can be advantageous for addressing emergencies or unforeseen needs.
Limited oversight. Compared to line-item appropriations, there is less immediate legislative or executive oversight on how the funds are spent.
Expedited decision-making. This approach is often used in situations where speed is critical, such as responding to natural disasters, pandemics, or national security emergencies. Doing so reduces bureaucratic delays that can occur with highly itemized appropriations.
Risk of mismanagement. The lack of detailed constraints increases the potential for inefficiency, waste, or corruption.
Legislative authority. These appropriations require enabling legislation or formal approval before funds can be issued.

By offering flexibility, blanket appropriations can allow governments to respond quickly to changing circumstances, but they also require strong accountability mechanisms to prevent misuse.

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.