Glossary M

Mandatory Spending

Mandatory spending is federal spending generally controlled by eligibility rules and benefit formulas in laws other than annual appropriations acts. Changing it usually requires changing the underlying law, although Congress can amend those laws through legislation.

Mandatory spending is federal spending generally controlled by eligibility rules and benefit formulas in laws other than annual appropriations acts. Changing it usually requires changing the underlying law, although Congress can amend those laws through legislation.

Example: Social Security benefits are mandatory spending because payments are determined under program statutes rather than being set each year through the regular discretionary appropriations process.

Common misconception: Mandatory spending can never be changed through the budget process. Congress can change the statutes governing mandatory programs, but doing so requires legislative action rather than simply adjusting an annual discretionary appropriation.

Sources: https://www.cbo.gov/topics/budget/mandatory-spending; https://www.gao.gov/federal-budget-process