Tag: Mandatory vs Discretionary Spending

Government spending falls into two categories: mandatory vs discretionary spending. Although the two terms are sometimes mixed up, their meanings are extremely distinct. Spending that Congress has the discretion to authorise or not each year is known as discretionary spending. This covers areas like infrastructure, education, and defence. Congress has the authority to set the budget for these programmes, as well as to alter it from year to year. Spending that Congress must finance annually is referred to as mandatory spending. Social Security, Medicare, and Medicaid are examples of this. Congress cannot decide not to support these initiatives. Law establishes the annual budget that Congress must devote to these initiatives.   What is Mandatory Spending? Government spending comes ...