Federal Spending

Federal spending is how the national government uses the money it collects and borrows. It covers mandatory programs such as Social Security and Medicare, discretionary spending that Congress sets each year, defense, grants to states, and interest on the debt. Congress decides most spending, and agencies carry it out.

People usually ask where federal money goes, how mandatory and discretionary spending differ, and how earmarks and grants work. They also ask how much control Congress has over agencies, how the president can or cannot redirect funds, and how supporters of different priorities, such as defense, aid, and benefits, argue about what government should fund.