#Federal spending update

Unlike discretionary programs, the money didn’t run out and shut some people out. During the COVID-19 crisis, for example, anyone who qualified for stimulus checks could get them. One advantage of this kind of spending compared to discretionary spending (which is limited by the amounts Congress sets) is that it can more readily respond to unexpected circumstances like a recession, or a pandemic. Medicare and other programs work similarly. People who are eligible can get help, and the government covers the costs. When Congress decides to create a program like Social Security, rather than setting aside a certain amount of money, it sets rules for who can receive benefits from the program, and what those benefits will be. It also includes Medicaid, the health insurance program for low-income adults and children, and widely used safety net programs like food stamps (SNAP), welfare (TANF), and highway construction and maintenance, and other things. It is dominated by the Social Security and Medicare programs, which provide income security and health insurance for retirees and some Americans with disabilities, and sometimes their families. Mandatory spending is also legislated by Congress, often for multiple years at a time. Other examples of discretionary spending include the early childhood education program Head Start (included in Housing & Community), public housing and homeless programs (Housing & Community), federal aid for public K-12 education (Education), Pell grants for low-income college students (Education), food assistance for Women, Infants and Children (or WIC, in Food and Agriculture), job training and placement for unemployed people (in Social Security, Unemployment and Labor), and scientific research through the National Institutes of Health (NIH) and National Science Foundation (NSF), among many others. In 2020, because some discretionary spending passed through supplemental appropriations went to pandemic programs, the share of the discretionary budget that went to the military was smaller – even though the amount that went to the military was just as high as in previous years. In most years, this accounts for more than half of the discretionary budget. The pie chart shows federal spending in 2020 broken into these three categories.īy far, the biggest category of discretionary spending is spending on the Pentagon and military. Interest payments on the national debt account for a much smaller amount than the other two categories. Together, mandatory and discretionary spending account for more than ninety percent of all federal spending, and pay for all of the government services and programs on which we rely. Treasury divides all federal spending into three groups: mandatory spending, discretionary spending and interest on debt. So where does all that money go? Three Types of Federal Spending The extinction of Ice Age animals like the wooly mammoth and saber-toothed tiger was only about 13,000 years ago, or less than half a trillion seconds. In 2020, the total federal budget ran much higher, at $7 trillion, because of all of the steps the government took to address the COVID-19 pandemic.īecause few of us have any idea what a trillion really is, here’s one example: 1 trillion seconds is about 31,000 years. The total federal budget of the United States has recently run about $4 trillion or more each year. ' Federal Deficit Trends Over Time.Federal Spending: Where Does the Money Go Federal Budget 101 ' Funding Gaps and Shutdowns in the Federal Government.'Ĭ. ' Congress Increasingly Fails to Budget.' Ĭommittee for a Responsible Federal Budget. ' United States Code, 2006 Edition, Supplement 5, Title 31 - Money and Finance,'. ' Congressional Budget and Impoundment Control Act of 1974,' Pages 11-12. ' Congressional Budget and Impoundment Control Act of 1974.'

' Major Foreign Holders of Treasury Securities.' ' The Department of Defense Releases the President’s Fiscal Year 2022 Defense Budget.'ĭepartment of the Treasury. ' The Disaster Relief Fund: Overview and Issues,' Pages 19-24.ĭepartment of Defense. ' Fiscal Year (FY) 2022 President’s Budget -Justification for Component Contingency Operations the Overseas Contingency Operation Transfer Fund (OCOTF),'. ' Social Security Board of Trustees: Combined Trust Funds Projected Depletion One Year Sooner Than Last Year.'īureau of the Fiscal Service. “ S.J.Res.33 – A Joint Resolution Relating to Increasing the Debt Limit.” ' The Debt to the Penny and Who Holds It,' Select 'Data Tables.'Ĭongressional Budget Office.

#Federal spending update

' An Update to the Budget and Economic Outlook: 2021 to 2031.' ' The Budget and Economic Outlook: 2021 to 2031.'Ĭongressional Budget Office.