earmark

An earmark is a designation of funds within a larger budget for a specific recipient, project, or purpose. The term also refers to a physical mark on an animal's ear used for identification. The name derives from historic livestock practices in which a notch or cut in the ear signified ownership or breed, a symbol later extended to designate budgeted allocations.

In public finance, earmarks designate money within appropriations that is directed to a particular project or organization, often at the request of a legislator or agency. They may appear as line items or as conditions attached to funding. Proponents argue earmarks help address local needs and improve project accountability by tying funds to specific outcomes. Critics call them pork-barrel spending when used to favor a district, arguing they can undermine general budget discipline and transparency. Many jurisdictions have introduced rules to disclose, cap, sunset, or eliminate earmarks, or to require competitive grants rather than direct allocations.

In livestock management, an earmark is a physical modification or tag in the ear to mark ownership, breed, or status. Notches, slits, or implanted microchips are common methods, and such marks facilitate identification, record-keeping, and movement control, including health interventions.

In finance more broadly, earmarked funds are those set aside for a defined purpose, such as a tax earmark or dedicated fund. Once designated, these funds may be restricted from reallocation, depending on law and policy.