Discretionary Spending

Written By Jonathan Milner

Definition

Government spending that is determined by Congress during the annual budget process, which can be adjusted each year (e.g., defense spending, education programs). Differs from Mandatory Spending: Expenditures required by law for specified programs (e.g., Social Security, Medicare, Medicaid) that make up a large portion of the federal budget and are not subject to annual appropriations.

Example

 

Questions

  1. Define federal discretionary spending and explain how its annual budget approval process differs from mandatory spending.

  2. Identify two major federal programs funded through discretionary spending and describe the role of the House and Senate Appropriations Committees in setting their funding levels.

  3. What is the difference between an authorization bill and an appropriations bill in the federal budget process?

  4. How does the growth of mandatory entitlement spending, such as Social Security or Medicare, limit the amount of money available for discretionary spending?

  5. Explain how Congress can use its "power of the purse" over discretionary spending as an oversight tool to hold executive branch agencies accountable.

  6. How can divided government lead to budget gridlock or government shutdowns over discretionary spending decisions?

  7. How do rising interest payments on the national debt constrain Congress's ability to fund discretionary programs?

Remember!

Now, let’s commit this term to our long-term memory. On a scrap piece of paper, take 10 or 20 seconds to draw discretionary spending! Draw with symbols or stick figures if you wish. Nothing fancy. Don’t expect a masterpiece. No one else will see this but you. Look at your drawing. That’s all - now it’s downloaded into your memory. Destroy the piece of paper in a most delightful way.

Further Review

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Jonathan Milner

Civics Maven!

https://www.gopopro.com/
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Mandatory Spending
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Fiscal Federalism