earmarked

Earmarked refers to funds or resources designated for a specific purpose. The term derives from the practice of marking livestock ears to indicate ownership, a metaphor later applied to funds set aside for particular projects or recipients.

In government budgeting, an earmark is a line item or directive that restricts how money may be spent, typically specifying a project, recipient, or program. Earmarks may be inserted during the appropriation process and may require reporting on how funds are used. Some jurisdictions require transparency and competitive bidding; others have reforms to limit or prohibit them. Earmarked funds are contrasted with general or non-restricted funds, which can be allocated more broadly by lawmakers or administrators.

Arguments for earmarks include targeted funding for local needs, steering resources to priorities that broader allocations might overlook, and enabling projects with strong local support. Critics contend that earmarks can bypass competitive processes, encourage wasteful spending, and create political favoritism or corruption risk. In response, many jurisdictions have adopted rules to increase transparency, require justification, or prohibit certain types of earmarks altogether.

In other contexts, earmarking appears in philanthropy and contracting, where organizations designate grants or incentives for specific programs, outcomes, or beneficiaries. The practice thus serves as a mechanism for directing resources to predefined purposes, while also raising questions about accountability, efficiency, and democratic process.