Government is about choice. We expect that our representatives will make informed decisions based on the needs of his/her constituents. Government spending is about choosing the best way to allocate finite resources. Should funds be applied to transportation or law enforcement? How about parks and libraries? Should funds be applied to healthcare or education? But don’t we need a strong national defense, particularly with the continued global threats and terrorism?
According to the US Constitution, Article I, money cannot be paid out from the US Treasury unless it is appropriated by an act of Congress.[1]
Government gets the money to provide for goods and services from collecting taxes and borrowing money. When taxes are lower, there is less revenue for the government to spend. Money is also spent to pay the interest on the money borrowed by the government. Spending is either mandatory, where spending is mandated by existing laws for a number of years such as spending for Social Security, or discretionary, where money approved by Congress during the appropriations process each year, for example, national defense or education.[2]
In 2020, according to nationalpriorities.org, Congress budgeted $1.6 trillion in discretionary spending, where the largest category was spending on the military or national defense.[3]
So far, in fiscal year 2023, the US government has spent almost $2 trillion on a variety of goods and services.[4]
https://www.pexels.com/photo/image-of-old-building-on-american-banknote-4386157/
But what about discretionary spending for a purpose other than the military? For example, according to the US Department of Transportation, both mandatory and discretionary funding are used to support various transportation programs including railways for construction and improvement.[5] The Federal Aviation Administration, through its Airport Improvement Program provides discretionary grant funds for eligible airports for various projects. Where there is a perceived need, funds are appropriated for that particular purpose.
Why is this important?
Why do we need to know this?
We live in a democracy, and appropriations for discretionary spending are subject to politics and set at the discretion of Congress. Non-defense related programs supported by discretionary spending may not be as newsworthy as spending on the military and account for a much smaller part of discretionary spending. These much smaller programs supported by discretionary spending can be the source of much political debate, such as whether to fund a program or eliminate it, even though the cost may not be that high. Almost all education programs are discretionary spending programs.[6]
Should education programs be reduced as opposed to discretionary military spending?
Considering recent events, discretionary money should be appropriated for enhanced railway safety in response to the devastating train derailment in East Palestine, Ohio that occurred last month. That’s just scratching the service. For that, there should be bipartisan agreement.
Too often, we expect quick results from programs funded by discretionary spending. But we must keep in mind that the benefits of some of these programs programs are not always immediately realized. Positive results could take years, during which time priorities of where to spend the money could change while costs increase.
Overall, these decisions are made by our representatives.
Ultimately, we voice our opinions about government spending WHEN WE VOTE.
Be Informed
Be Engaged
Be Involved
[1] https://constitution.congress.gov/browse/essay/artI-S9-C7-1/ALDE_00001095/
[2] https://fiscaldata.treasury.gov/americas-finance-guide/federal-spending/
[3] https://www.nationalpriorities.org/budget-basics/federal-budget-101/spending/
[4] https://fiscaldata.treasury.gov/americas-finance-guide/federal-spending/
[5] https://www.transportation.gov/sites/dot.gov/files/2021-05/FRA-FY-2022-Budget-Estimates-FINAL.PDF
[6] https://www.newamerica.org/education-policy/topics/federal-education-legislation-budget/federal-education-budget/federal-budget-process/mandatory-and-discretionary-spending/