Glossary articles
ACA Marketplace definition
The Affordable Care Act (ACA) is a 2010 law that made several changes to the US health insurance system, including expanding Medicaid in some states, allowing young adults to stay on their parents’ plans until age 26, prohibiting coverage denials for preexisting conditions, and creating new health insurance marketplaces.The ACA Marketplace is one part of that law. It is the platform where individuals and families can shop for and enroll in private health insurance plans that meet ACA standards, often with income-based subsidies that lower costs. The Marketplace is a purchasing platform, not a single insurance program.
Adjusted Gross Income (AGI) definition
Adjusted Gross Income (AGI) is the total of a taxpayer’s income from all sources, minus any allowable adjustments to income, as listed on Schedule 1 of Form 1040. Adjustments to income may include things like contributions to a traditional Individual Retirement Account (IRA) or student loan interest.AGI is calculated before either the standard deduction or itemized deductions are applied.
Alternative minimum tax definition
Some higher-income taxpayers can significantly reduce their tax liability with deductions and credits. The alternative minimum tax (AMT) was created to ensure that these taxpayers still pay a base amount by requiring a separate tax calculation that disallows or limits certain deductions and exclusions that are generally available.Taxpayers whose financial situations trigger AMT calculate their tax liability twice: once using regular income tax rules and once using AMT rules. They then pay whichever amount is greater.
Antideficiency Act definition
The Antideficiency Act prohibits federal agencies from spending federal funds during a funding lapse, and from accepting voluntary services. The Act also prohibits agencies from obligating or spending more than the amount Congress has appropriated.A funding lapse happens when Congress hasn’t passed a regular appropriations bill or a continuing resolution (CR) to provide money for a program or agency. A lapse can happen if a CR expires before new funding is approved.
Appropriations bill definition
An appropriations bill is a type of legislation Congress passes to grant budget authority from the US Treasury, allowing federal agencies and programs to incur sending obligations and make payments for specific purposes over a set period (typically one federal fiscal year).Appropriations bills are a key part of the discretionary spending process. They determine how much funding each department, agency, or program receives and under what conditions.Congress has 12 appropriations subcommittees, and each is responsible for drafting one annual appropriations bill covering its area of government. Sometimes, instead of being passed individually, these 12 bills are packaged together into a single measure called an omnibus appropriations bill.Appropriations bills are part of the government budget process. Before appropriations bills are drafted, the President annually submits a budget request to Congress, which informs the budget resolution and appropriations process.After both chambers of Congress pass an appropriations bill, it is sent to the President for approval. If signed, it becomes law and provides funding authority.
Asylum definition
Asylum — permission to stay in the US — a protection available to people already in the country (or who are arriving at a port of entry) who meet the legal definition of “refugee,” someone unable or unwilling to return home because of persecution or a well-founded fear of persecution. To request asylum, an individual files Form I-589 with US Citizenship and Immigration Services (USCIS) or raises the claim during immigration court proceedings. The government reviews the application, interviews the applicant, and checks whether the claim fits US asylum law. A decision is then made to grant asylum, deny it, or continue the case in immigration court.
Ballot measure definition
A proposition — also called a ballot measure — is a potential new law, constitutional amendment, or policy question placed on a ballot. Voters approve or reject the measure directly, rather than leaving the decision to elected officials. They happen at the state, county, and city levels and are used to address issues like taxes, bond laws, and wages.The name for these ballot measures varies by state; California numbers its statewide measures as propositions while Washington calls them initiatives and referenda. Each state specifies its own naming and rules via state constitutions and election laws. What is the difference between an initiative and a referendum?An initiative lets voters propose a new law or a change to an existing law by petition. In some states, including California, an initiative can also amend the state constitution.A referendum lets voters approve or reject a law the state legislature has already passed. The legislature can also refer its own proposed laws to the voters for a decision.(Both fall under the larger category of “proposition,” which includes any legal/policy question citizens vote on directly.)How does a proposition get on the ballot?Most measures qualify by petition. Supporters gather signatures from registered voters, and election officials check the signatures. If the petition has enough signatures — the required number is usually a share of the votes cast in a past statewide election — then the measure qualifies.In California, a statewide referendum needs 546,651 valid signatures to qualify, equal to 5% of the votes cast for governor in 2022. In Washington, an initiative needs 308,911 valid signatures. That equals 8% of the votes cast for governor in 2024.State legislatures can also vote to place a measure on the ballot without a petition.
Birthright citizenship definition
Birthright citizenship is the legal right to US citizenship for anyone born in the United States or its territories (except American Samoa), regardless of the parents’ citizenship or immigration status. There are limited exceptions, such as for the children of foreign diplomats. This principle is established in the 14th Amendment to the US Constitution and clarified in federal law.What is the difference between naturalized and birthright citizenship?Birthright citizens are US citizens from the moment of birth, either because they were born in the US (jus soli) or born abroad to US citizen parents who meet certain residency or physical presence requirements (jus sanguinis).Naturalized citizens are people not US citizens at birth but became citizens later through the legal process of naturalization.Both have the same rights, protections, and responsibilities, except that only natural-born citizens are eligible to serve as president or vice president.What is the Birthright Citizenship Act of 2025?The Birthright Citizenship Act of 2025 refers to two related but distinct actions taken in January 2025:1. Executive Order: President Trump signed an executive order titled “Protecting the Meaning and Value of American Citizenship” that attempts to restrict birthright citizenship for children born in the United States after February 19, 2025. The order directs federal agencies not to recognize US citizenship for children born when the mother was unlawfully present and the father was not a US citizen or lawful permanent resident, or the mother's presence was lawful but temporary, and the father was not a US citizen or lawful permanent resident. The executive order has faced immediate and widespread legal challenges. Litigation is ongoing, and the executive order is not currently in effect pending court decisions.2. Congressional Legislation: The Birthright Citizenship Act of 2025 was introduced by Sen. Lindsey Graham (R-South Carolina) in the Senate (S. 304) and Rep. Brian Babin (R-Texas) in the House (H.R. 569), aiming to limit US citizenship at birth to children with at least one parent who is a US citizen or national, a lawful permanent resident residing in the US, or a non-US national with lawful immigration status performing active service in the Armed Forces. As of now, neither bill has been passed into law; both remain pending in Congress.Does a baby born in the US get citizenship?Yes, under current law, almost every baby born in the United States or its territories automatically becomes a US citizen at birth, regardless of the parents’ immigration status, except for certain children of foreign diplomats or enemy forces in hostile occupation.
Bonded warehouse definition
A US Customs bonded warehouse is a secure facility where imported goods can be stored, processed, or manufactured for up to five years without paying duties. Using a bonded warehouse to store imported goods has some financial advantages, such as delaying the tariffs due until domestic buyers are found. Duties do not apply if the goods are reshipped to foreign markets.
Budget deficit definition
A budget deficit occurs when a government’s annual spending (also called “outlays”) exceeds its annual revenue (“receipts”). In other words, the government spends more money than it collects through taxes and other income sources in a given fiscal year. To cover this shortfall, the government borrows money, which increases the national debt.
Budget resolution definition
A budget resolution (also known as a concurrent resolution) is the second step in the government budget process. It's preceded by the president’s budget request and followed by budget hearings in both the House and Senate. The resolution itself is a blueprint, adopted separately by the House of Representatives and the Senate, for federal spending, revenues, deficits or surpluses, and public debt for the upcoming fiscal year — along with projected plans for at least the next five years. The budget resolution gives Congress a framework for considering subsequent spending, revenue, and debt-limit legislation. It establishes overall totals, not line-item details. Congress is supposed to pass a budget resolution by April 15 each year (but they frequently miss the deadline).
Campaign contributions definition
A campaign contribution is anything of value given, loaned, or advanced to influence a federal election. The Federal Election Commission (FEC) regulates contributions to candidates for president, the US Senate, and the US House. Contributions include money, loans, and in-kind goods or services given free or below market value.A campaign may not take money from a corporation, labor organization, or national bank's own funds, though those groups may set up a separate political action committee (PAC) that can make contributions. Campaigns also may not take money from federal government contractors or foreign nationals, and no one may give using another person's name.Campaigns raise and spend contributions through a committee, which reports to the FEC. Committees must list the name, address, occupation, and employer of anyone who gives more than $200 during an election cycle. The FEC posts those reports on its website within 48 hours of receiving them.
Capital gains definition
Capital gains are the profits made when a capital asset — large items that people keep for long periods of time, like personal property, stocks, bonds, mutual funds, collectibles, or real estate — is sold. There are two kinds of capital gains:Short-term capital gains are profits realized from selling an asset a person or organization has held for one year or less.Long-term capital gains are profits realized from selling an asset a person or organization has held for more than one year.If a capital asset is sold at a loss, it’s called a capital loss. How much are capital gains taxed?The amount of capital gains tax depends on which type it is: Short-term gains are taxed at the seller’s ordinary income tax brackets (10%-37% for most taxpayers).Long-term gains are taxed at 0%, 15%, or 20%, depending on the seller’s taxable income and filing status.An additional 3.8% net investment income tax may apply to individuals with modified adjusted gross incomes above $200,000 (for people who are single or head of the household or $250,000 (for married couples filing jointly).What is the capital gains home sale tax exclusion?Selling a house typically triggers a capital gains tax. However, someone selling their main home may be able to exclude (not pay tax on) up to:$250,000 of capital gain if they are single$500,000 of capital gain if they are married filing jointlyAny profit above the $250,000/$500,000 limit is taxable as a capital gain.To qualify for the exclusion, a taxpayer generally must have:Owned the home for at least two years in the five years before selling.Used in the home as their main residence for at least two years during that same five-year period.Not claimed the exclusion on the sale of another home in the past two years.If a taxpayer doesn’t meet the full two-year residency requirement, they may still qualify for a partial exclusion if the sale was due to a change in job, health, or certain unforeseen circumstances.
Citizens United v. FEC definition
Citizens United v. Federal Election Commission (FEC) is a 2010 Supreme Court case that struck down federal limits on independent expenditures by corporations and labor unions. An independent expenditure is money spent on ads or other messages that support or oppose a candidate, without coordination with that candidate's campaign.A nonprofit, Citizens United, made a film about Hillary Clinton in 2008 while she was running for president. It wanted to put the film on cable on-demand right before the primaries.Federal law barred corporations from paying for campaign ads that close to an election. Citizens United said the movie was journalism, not a campaign ad. The FEC said it was a campaign ad. Citizens United sued rather than risk civil and criminal penalties.The Supreme Court could have answered the narrow question: does this one movie violate campaign finance law? It didn't. Instead, it threw out the whole rule, saying political spending is speech and the government cannot stop a corporation or a union from spending its own money to support or oppose a candidate.
Committee jurisdiction definition
A congressional committee's jurisdiction is the set of subject areas it has authority over. Jurisdiction determines whether a committee has the authority to review a bill, hold hearings on it, and send it to the full House or Senate for consideration.Committees in the House of Representatives and the Senate are granted jurisdiction through the chambers’ rules, which assign committee policy areas and legislative responsibilities. These rules determine which committee considers a bill before it reaches the floor. Committee jurisdiction organizes the legislative process and allows members to develop expertise in specific subjects.
Congressional recess definition
A congressional recess is a temporary break in the proceedings of the House or Senate during which the chamber is not conducting official legislative business. Unlike adjournment at the end of a congressional session, a recess is a pause within a session, and Congress can return without starting a new session.How long can Congress stay in recess?Under the Constitution, neither the House nor the Senate may recess for more than three days without the consent of the other chamber. If both chambers agree, they can recess for longer periods. The length of a recess can vary widely, from a few days to several weeks, depending on the congressional calendar, holidays, or scheduled district work periods. What are recess appointments?A recess appointment is a temporary appointment made by the President when the Senate is in recess and unavailable to confirm nominees. Recess appointments allow the President to fill vacancies without Senate approval, but they expire at the end of the next Senate session unless the nominee is formally confirmed. Recess appointments are authorized by Article II, Section 2 of the Constitution.
Continuation of Pay (COP) definition
Continuation of Pay (COP) is a benefit for employees who experience a traumatic injury while working for the government. COP continues the employee’s regular pay for up to 45 days while they are unable to work, as confirmed by an incident report and doctor’s evaluation.COP is part of the Federal Employees’ Compensation Act (FECA), which is the government’s workers’ compensation program. The act provides disability, survivor, and medical benefits to employees injured or made ill on the job, regardless of fault, and to survivors of people who died at work.
Continuing resolution definition
A continuing resolution (sometimes called a CR) is an act of Congress providing temporary funding that keeps federal agencies and programs operating when Congress hasn’t passed any regular appropriations bills by the start of the fiscal year (October 1).Continuing resolutions typically continue funding the government at roughly the same levels as the prior year (or with minor adjustments) for a limited time. They’re often passed as joint resolutions.
Cost basis definition
The cost basis of an asset is generally the amount paid for it, including fees, taxes, or commissions; in some cases, as with inherited property, it may be the fair market value of the asset at the time of acquisition. Cost basis is used to calculate taxes owed on any capital gain or loss resulting from the asset’s sale. What is the difference between cost basis and purchase price?For most assets, the cost basis is the original purchase price plus any allowable acquisition costs, plus/minus adjustments over time. Adjustments may include improvements to or depreciation of the asset. How is cost basis determined when selling a home?The cost basis of a home when selling it depends on how the seller first acquired the property. The cost basis of purchased property includes the purchase price, closing costs, settlement fees, and any improvements made, minus casualty loss and any other decreases; for self-built property, it’s the total cost of constructionThe cost basis of inherited and gifted properties is generally based on the fair market value of the home at the time of the original owner’s death or of the gift. Some additional Internal Revenue Service (IRS) rules also apply to gifts.
Customs definition
Customs refers to the rules and procedures of moving goods in and out of countries. A country’s customs organization facilitates international trade by ensuring its compliance with relevant laws and regulations and collecting tariffs. Customs includes:Enforcing import and export lawsCollecting duties and taxesScreening goods and travelers at ports of entrySeizing prohibited or dangerous itemsVerifying documentation of imports and exportsProtecting a country’s economic, health and security interests at the border