What is discretionary spending?

Discretionary spending refers to the part of the federal budget that is not required by law and is therefore subject to annual review and appropriation by Congress. This category includes expenditures that can be adjusted each year, as opposed to mandatory spending which is dictated by existing laws and commitments, such as social security or Medicare.

Discretionary spending typically covers programs and services like defense, education, transportation, and many other government functions. Because it is determined through the appropriations process, lawmakers have the flexibility to allocate funds based on current priorities, economic conditions, and policy objectives, allowing for responsive adjustments to new challenges or shifts in societal needs. This feature of discretionary spending makes it an important tool for government responsiveness and policy formulation.