Mandatory spending
Mandatory spending refers to government expenditures that are required by law. This type of spending includes programs like Social Security, Medicare, and Medicaid, which provide essential services and financial support to eligible individuals. Because these programs are established by legislation, the government must allocate funds for them each year, regardless of the overall budget situation.
Unlike discretionary spending, which can be adjusted annually through the budget process, mandatory spending is more rigid. It is determined by existing laws and typically grows over time due to factors like inflation and an aging population, leading to increased costs for programs like Social Security and Medicare.