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ARTICLE · 20 MARCH 2023

Discretionary Spending

Non-compulsory government spending approved during the appropriations process.

United StatesFinance and Banking

Non-compulsory government spending approved during the appropriations process.

Fly Me to the Moon

Federal government spending can be broken down into two broad categories: mandatory and discretionary. Mandatory spending does not require an annual vote by Congress and is dictated by prior law. Discretionary spending, however, is subject to the annual appropriations process and includes funding for essential federal programs like national defense, social services, highways, and foreign aid, to name just a few.

That's Life

Two critical spending-related milestones are on the horizon: one that could lead to a government shutdown, and the other that could lead to a national default.

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