Mandatory Spending And Discretionary Spending Essay

1530 Words Apr 28th, 2016 null Page
The United States government spends an enormous amount of money. Where exactly does the U.S. government spend all that money on? There are three levels of government, federal, state, and local. As of today 2016, the amount of the three levels of government spending is estimated to be around $6.6 trillion. Federal spending is estimated to be $3.95 trillion, state spending is around $1.62 trillion, and local spending is around $1.82 trillion.
Federal spending is divided into three categories by the U.S. Treasury: mandatory spending, discretionary spending and net interest. Mandatory spending is a budgeted amount of money that is set aside for specific programs that are required by the law. Mandatory spending is composed of budget outlays and it’s controlled by laws other than appropriation acts. Mandatory spending is dominated by social security, Medicare, unemployment insurance, Temporary assistance for needy families (TANF), Supplemental Nutrition assistance Program (SNAP, or food stamps) and many other programs. Mandatory spending also funds transportation. The programs are “controlled” by Congress; Congress is in charge on determining who would be eligible to benefit from the programs. Because of all the programs that are under mandatory spending must be funded due to laws, Congress has less money to spend on programs they choose.
The Social Security program occupies most of the mandatory spending funds which provides benefit to over 47 million retired and disabled…

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