What is meant by Discretionary Spending?

Discretionary spending refers to the portion of the government budget that is determined through the annual appropriations process. This spending is not required by existing laws and is instead evaluated and adjusted each year by Congress. This gives lawmakers the flexibility to allocate these funds according to current priorities and needs, such as defense, education, transportation, and other public services.

In contrast, mandatory spending includes expenditures that are mandated by law, such as Social Security and Medicare, which do not require annual approval from Congress. Therefore, understanding discretionary spending is crucial as it reflects governmental choices and policy directions made each fiscal year.