Discretionary spending refers to government expenditures allocated by Congress each year after negotiations between the President and Congress. Defense spending constitutes the largest portion of discretionary spending.
Detailed Explanation:
Discretionary spending encompasses government programs and services across nearly all government agencies, including defense, transportation, research, environment, public health, law enforcement, and homeland security. The budget process begins when the President submits a proposed budget to Congress, which reflects his political priorities.
Congress then drafts a resolution that sets spending limits but does not allocate funds. Following this, the appropriation committees in the House and Senate create 12 appropriation bills, each corresponding to a different discretionary funding category. Both the House and the Senate must pass the bills before sending them to the President, who can either sign them into law or veto them. If the President vetoes a bill, Congress can override the veto with a two-thirds majority in both chambers.
Discretionary spending accounts for approximately 27 percent of the federal budget, while mandatory spending exceeds 60 percent. The largest obligations in the mandatory spending category are Social Security, Medicare, and Medicaid.
Unlike discretionary spending, which is negotiated annually by Congress and the President, mandatory spending is determined by legislation. Instead of specifying a dollar amount, Congress establishes eligibility requirements for these programs, which are often referred to as “entitlements.” Changing these eligibility requirements necessitates a 60-vote majority in the Senate. The Office of Management and Budget (OMB) estimates the budgeted amounts based on the eligibility criteria set by Congress.
This video clarifies the distinction between mandatory and discretionary expenses for a family facing difficult choices, while comparing their decisions to the spending habits of the US government.
