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Plain-language explainers on federal economic and legislative policy
Glossary term

Discretionary spending

The portion of federal spending set each year through the appropriations process.

Discretionary spending is whatever Congress funds through the annual appropriations acts. If the acts are not passed, that authority lapses, which is why a lapse in appropriations shows up as agencies closing rather than as benefit cheques stopping.

It is the smaller share of the budget. The larger share is mandatory spending, which flows from permanent law and continues without annual action.

Where you will see it

It covers defence, most agencies, and the majority of what a shutdown interrupts — but a minority of total federal spending.

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Published · Last updated · Edited by Clem Ziroli III