Federal Spending

Federal Spending

★Mandatory and Discretionary Spending

●Mandatory spending

■revenue required by law to spend in

certain ways

●Social Security, Medicare, etc.

Multiple Choice

What is Mandatory spending?

• Money that is allocated for tribal gaming

• Funds that are subject to appropriation

• Expenditures that are not subject to change

• Revenue required by law to spend in certain ways

●Discretionary spending

■revenue which government

planners can make a choice
about

●defense, welfare, education,

etc.

Multiple Choice

What is Discretionary spending?

• Revenue which government planners can make a choice about

• Money allocated to a specific purpose

• Revenue allocated for Social Security

• Money allotted for Medicare coverage

★Entitlement Programs

●Social welfare programs that people

are “entitled” to

■Social Security
■Medicare
■Medicaid

●medical benefits for low income

families

●The future of entitlement spending

■it will increase as “baby boomers”

become older

Federal Spending | U.S. Treasury Fiscal Datadown arrow

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Multiple Choice

According to the website, how much has the U.S. government spent in fiscal year 2023 to ensure the well-being of the people of the United States?

• $3.15 trillion

• $2.5 billion

• $2.2 trillion

• $4.5 trillion

Multiple Choice

According to the website, what is the top category the U.S. government spends money on?

• Transportation

• Education

• Defense

• Social Security

★Discretionary Spending

●Defense spending

■consumes about 20% of the federal

budget

●Other discretionary spending

■education, training, research, student

loans, technology, national parks,
law enforcement, the environment,
and housing

Multiple Choice

About how much does defense spending consume of the federal budget?

• 40%

• 10%

• 30%

• 20%

★Federal Aid to State and Local

Governments

●Grants-in-aid
●Called intergovernmental revenue

Multiple Choice

What is federal aid to state and local governments called?

• Taxation

• Grants

• Intergovernmental Revenue

• Subsidies