Mandatory and discretionary spending in the federal budget involve distinct categories with different spending purposes, impacting various programs and services.
Mandatory spending refers to federal spending that is required by law and includes programs like Social Security, Medicare, and interest on the national debt. It constitutes a significant portion of the federal budget and is based on existing laws.
Discretionary spending, on the other hand, is the portion of the budget that requires annual authorization by Congress, giving lawmakers the freedom to make choices on where to allocate funds.
Entitlement programs fall under mandatory spending and provide benefits to individuals who meet specific eligibility criteria, contributing to the growing share of federal spending.
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