Mandatory Spending

Written By Jonathan Milner

Definition

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. Discretionary Spending differs from discretionary government spending that is determined by Congress during the annual budget process, which can be adjusted each year (e.g., defense spending, education programs).

Example

 

Questions

  1. Define federal mandatory spending and explain how it differs from discretionary spending.

  2. Identify two major federal entitlement programs that make up the largest portion of mandatory spending.

  3. Explain why mandatory spending programs do not require an annual vote or appropriations bill from Congress to continue receiving funding.

  4. Describe how demographic shifts, such as an aging population, automatically increase mandatory federal spending.

  5. Explain how the growth of mandatory entitlement spending can limit the budget available for discretionary areas like defense or education.

  6. What is an entitlement program, and how does a person's eligibility affect the total cost to the federal government?

  7. Describe the legislative process or steps Congress must take if they want to reduce or modify mandatory spending levels.

  8. Explain why interest on the national debt behaves like mandatory spending in the federal budget process.

  9. Why is reducing mandatory spending on programs like Social Security often politically difficult for members of Congress?

  10. Explain how the concept of "mandatory spending" relates to the government's long-term national debt.

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 mandatory 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.

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Jonathan Milner

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https://www.gopopro.com/
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Discretionary Spending