Definitions for "Contract Authority"
A form of budget authority that permits obligations to be made in advance of appropriations or receipts. Contract authority therefore is unfunded and requires a subsequent appropriation or offsetting collection to liquidate (pay) the obligations. The federal-aid highway program has operated under contract authority since 1921.
A form of budget authority that permits obligations to be made in advance of appropriations. Contract authority funds Discretionary Grants program subject to an obligation limitation.
A form of budget authority that permits obligations to be made in advance of appropriations. The federal Discretionary Grants program is funded from contract authority, subject to an obligation limitation.