FY 2001 Discretionary Budget Request

The Fiscal Year 2001 budget request includes $622 billion for discretionary spending (the money the President and Congress must decide and act to spend each year), $305 billion of which will go to the Pentagon. The "National Defense" category of the federal budget for FY'01 accounts for 49 percent of all discretionary spending.

Or Will It? Based on figures included in the FY'01 request, education and housing assistance programs will receive major funding increases from this year's levels -- a 36% increase for education and a 59% jump for housing. Simply put, there is no way that the GOP-led Congress will accept these increases. Once these unrealistic projections are removed from the FY'01 request, the Pentagon continues to account for over 50% of the discretionary budget.

The other category of federal spending is mandatory spending, money that is spent in compliance with existing laws which govern the particular program or function. Mandatory spending includes entitlements, money or benefits provided directly to individuals such as Social Security, Medicare, Medicaid, Food Stamps, and Federal Retirement. It also includes interest payments on the national debt.

Note: Discretionary funding for Social Security and Medicare covers various administrative costs, and is not related to benefits mandated by law.

Prepared by Christopher Hellman, Senior Analyst, February 24, 2000.
Source: Office of Management and Budget.

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