![]() ![]() Over the next decade, it will decrease to a historically low level relative to the size of our national economy. In 2023, discretionary spending is projected to be about 28 percent of the budget. In the 1960s, two-thirds of total federal spending went to fund discretionary programs. Other major activities funded through appropriations include homeland security, education, transportation, research, food safety, science and space programs, disaster assistance, environmental protection, public housing, and federal law enforcement. Defense spending represents nearly half of all discretionary spending. ![]() There are 12 separate appropriation bills that are supposed to be shepherded annually through Congress by the appropriations committees. As opposed to the "automatic" nature of mandatory spending, discretionary spending must be revisited each year. CBO states that in 2023, 62 percent of federal spending went to mandatory programs.ĭiscretionary spending is determined on an annual basis by Congress and the President through enactment of appropriations. In 1970, only 31 percent of the federal budget was spent on mandatory programs, while the rest funded an array of discretionary programs and net interest. Over time, spending for mandatory programs has increased more quickly than most other programs - primarily because of growth in Social Security, Medicare, and Medicaid. However, if Congress and the President take no action, the current formulas and criteria for benefits generally remain in place year after year, and the spending flows as specified by law without interruption. Elected officials can at any time adjust the eligibility criteria and benefit formulas that determine spending on mandatory programs, as they did with Social Security in 1983. The term "mandatory" doesn’t mean that lawmakers are powerless to alter this spending. Total spending on the program depends on the number of people who file for unemployment, not on a fixed amount of funding set by lawmakers. For example, the unemployment insurance program has eligibility criteria that, once met, allow an individual to receive a certain level of benefits. Instead, they specify who is eligible for benefits as well as the type and level of benefits that each person can receive. Lawmakers do not provide specific funding levels for mandatory spending. ![]()
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