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  1. Home
  2. ›Definitions
  3. ›Budget concepts
  4. ›Mandatory spending

Budget concept

Mandatory spending

Spending written into permanent law, such as Social Security and Medicare.

What this means

Mandatory (or direct) spending continues under existing law without a new annual appropriation. The biggest pieces are Social Security, Medicare, Medicaid, and other entitlement programs. Interest on the debt is often shown separately.

Related

  • Discretionary spending

    Spending Congress sets each year in appropriations bills.

  • Net interest

    Interest the government pays on its debt, minus interest it earns.

All definitions · Methodology