Fast Facts about Discretionary Spending

Romina Boccia and Dominik LettThe federal government will spend $6.3 trillion in 2023, 27 percent is discretionary and 73 percent is mandatory. Discretionary spending refers to federal programs that receive funding through annual appropriations. Less than half ofdiscretionary spending is for defense. More than half isfor nondefense activitiesincludingeducation, infrastructure, scientific research, and other programs.If Congress does not pass annual appropriations bills before October 1st (the beginning of the federal fiscal year), the government undergoes a  partial “shutdown” where non‐​essential functions are halted until Congress enacts new funding bills. Congress may also enact a continuing resolution (CR) which temporarily continues the previous fiscal year ’s level of funding. In contrast, mandatory spending refers to federal programs that are funded outside of annual appropriations, including Social Security, Medicare, and food stamps (SNAP). Mandatory program spending is typically ongoing, continuing from year to year, unless Congress changes the law.This fact sheet lays out key details legislators and the public should know about discretionary spending.Discretionary spending accounts for less than one third of all federal spending, that ’s$1.7 trillion in 2023 or 6.6 percent of gross domestic product (GDP).Discretionary spending will reach$2.4 trillion or 6  percent of GDP by 2033 according toprojections by the Congressional Budget Office (CBO).Discret...

Source: Cato-at-liberty - May 30, 2023 Category: American Health Authors: Romina Boccia, Dominik Lett Source Type: blogs