15 Facts About Mandatory spending

Also known as entitlement spending, in US fiscal policy, mandatory spending is government spending on certain programs that are required by law.

Mandatory spending has taken up a larger share of the federal budget over time.

In FY 2016, mandatory spending accounted for about 60 percent of the federal budget and over 13 percent of GDP.

Bulk of mandatory spending is for entitlement programs, which are social welfare programs with specific requirements.

Many mandatory spending programs spending levels are determined by eligibility rules.

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Some mandatory spending programs are in effect indefinitely, but some, like agriculture programs, expire at the end of a given period.

Besides entitlement programs, mandatory spending includes, for example, the salaries of federal judges, Members of Congress, and the President, as well as certain payments from the Forest Service to states.

Mandatory spending grew following the passage of the Social Security Act in 1935.

In 1962, before the passage of Medicare and Medicaid, Social Security spending accounted for 13 percent of the total mandatory spending.

Persistent increases in health care spending have been the main drivers in increases in mandatory spending.

Mandatory spending programs act as automatic stabilizers and provide a fiscal stimulus in the short run without the need for new legislative action.

Mandatory spending levels have and will continue to be affected by the automatic spending reduction process enacted as part of the Budget Control Act of 2011.

The BCA imposes small reductions to mandatory spending seeking to cut spending by less than $200 billion from FY2012 to FY2021.

Increases in mandatory spending related to rising health care costs are projected to result in a continued upward trend despite these reductions.

The share of mandatory spending will continue to increase as a portion of federal spending and GDP.