The 2017 Federal Budget Gave the Federal Prison System Over $7 Billion

In May 2017, President Trump signed the Consolidated Appropriations Act of 2017, often called the 2017 federal budget. It gave the Federal Prison System just over $7 billion for salaries and expenses, plus $130 million for buildings and facilities.

Update (October 2026): This post covers the federal budget for fiscal year 2017, which ended September 30, 2017. Funding levels have changed every year since.

Many businesses run their fiscal year from January 1 to December 31, but the federal government's fiscal year runs from October 1 to September 30. So this law funded the government through the end of September 2017.

The parts of the law that cover the federal prison system are below. Not much changed from prior years. At the time, we were still waiting for Congress to take up federal prison reform, which later passed as the First Step Act of 2018.

The text of the law

Federal Prison System Salaries and expenses (including transfer of funds)

For necessary expenses of the Federal Prison System for the administration, operation, and maintenance of Federal penal and correctional institutions, and for the provision of technical assistance and advice on corrections related issues to foreign governments, $7,008,800,000: Provided , That the Attorney General may transfer to the Department of Health and Human Services such amounts as may be necessary for direct expenditures by that Department for medical relief for inmates of Federal penal and correctional institutions: Provided further , That the Director of the Federal Prison System, where necessary, may enter into contracts with a fiscal agent or fiscal intermediary claims processor to determine the amounts payable to persons who, on behalf of the Federal Prison System, furnish health services to individuals committed to the custody of the Federal Prison System: Provided further , That not to exceed $5,400 shall be available for official reception and representation expenses: Provided further , That not to exceed $50,000,000 shall remain available for necessary operations until September 30, 2018: Provided further , That, of the amounts provided for contract confinement, not to exceed $20,000,000 shall remain available until expended to make payments in advance for grants, contracts and reimbursable agreements, and other expenses: Provided further , That the Director of the Federal Prison System may accept donated property and services relating to the operation of the prison card program from a not-for-profit entity which has operated such program in the past, notwithstanding the fact that such not-for-profit entity furnishes services under contracts to the Federal Prison System relating to the operation of pre-release services, halfway houses, or other custodial facilities.

Buildings and facilities

For planning, acquisition of sites and construction of new facilities; purchase and acquisition of facilities and remodeling, and equipping of such facilities for penal and correctional use, including all necessary expenses incident thereto, by contract or force account; and constructing, remodeling, and equipping necessary buildings and facilities at existing penal and correctional institutions, including all necessary expenses incident thereto, by contract or force account, $130,000,000, to remain available until expended, of which $50,000,000 shall be available only for costs related to construction of new facilities: Provided , That labor of United States prisoners may be used for work performed under this appropriation.

Federal Prison Industries Incorporated

The Federal Prison Industries, Incorporated, is hereby authorized to make such expenditures within the limits of funds and borrowing authority available, and in accord with the law, and to make such contracts and commitments without regard to fiscal year limitations as provided by section 9104 of title 31, United States Code, as may be necessary in carrying out the program set forth in the budget for the current fiscal year for such corporation.

Limitation on administrative expenses, federal prison industries, incorporated

Not to exceed $2,700,000 of the funds of the Federal Prison Industries, Incorporated, shall be available for its administrative expenses, and for services as authorized by section 3109 of title 5, United States Code, to be computed on an accrual basis to be determined in accordance with the corporation's current prescribed accounting system, and such amounts shall be exclusive of depreciation, payment of claims, and expenditures which such accounting system requires to be capitalized or charged to cost of commodities acquired or produced, including selling and shipping expenses, and expenses in connection with acquisition, construction, operation, maintenance, improvement, protection, or disposition of facilities and other property belonging to the corporation or in which it has an interest.

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