Mandatory Spending
Mandatory spending, also known as direct spending, is a type of government spending that is required by law. This type of spending is not subject to the annual appropriations process and is not subject to the discretion of the executive branch. Examples of mandatory spending include Social Security, Medicare, Medicaid, unemployment insurance, and food stamps. Mandatory spending is a major component of the federal budget and accounts for more than two-thirds of all federal spending.
History of Mandatory Spending
Mandatory spending has been a part of the federal budget since the 1930s. During the Great Depression, the federal government began to provide assistance to those in need through programs such as Social Security and unemployment insurance. Since then, mandatory spending has grown steadily and now accounts for a large portion of the federal budget. In recent years, mandatory spending has been a major source of debate in Congress, as lawmakers have sought to reduce the deficit and control the growth of the federal budget.
Comparison of Mandatory Spending
| Program | Percentage of Federal Budget |
|---|---|
| Social Security | 24% |
| Medicare | 15% |
| Medicaid | 9% |
| Unemployment Insurance | 2% |
| Food Stamps | 2% |
Summary
Mandatory spending is a type of government spending that is required by law and is not subject to the annual appropriations process. It has been a part of the federal budget since the 1930s and now accounts for more than two-thirds of all federal spending. For more information on mandatory spending, visit the websites of the Congressional Budget Office, the Office of Management and Budget, and the Center on Budget and Policy Priorities.
See Also
- Discretionary Spending
- Federal Budget
- Appropriations
- Entitlement Programs
- Social Security
- Medicare
- Medicaid
- Unemployment Insurance
- Food Stamps
- Tax Expenditures
