What is the Difference Between Mandatory and Discretionary Spending?
Mandatory spending refers to legally required expenses, such as Social Security, Medicare, and interest on the national debt. These are fixed obligations set by law.
On the other hand, discretionary spending includes expenses that Congress decides through the annual budget process, such as education, defense, and infrastructure. It’s more flexible and subject to change each year.
Mandatory and discretionary spending are like personal budgets. Mandatory spending is your mortgage or rent, while discretionary spending is the travel list.
