Discretionary Spending: Overview

The Budget divides more than $6.2 trillion in annual federal spending into three broad categories: (i) discretionary spending, (ii) direct (or mandatory) spending, and (iii) net interest payments on the public debt.

About 28% of federal spending is called “discretionary spending,” because the amount of spending flows from annual discretionary funding decisions by the House and Senate Appropriations Committees. The respective Appropriations Committees write 12 annual appropriations bills that allocate total discretionary spending among federal agencies and programs in account-level detail.

The 12 annual appropriations bills are negotiated under two broad subcategories—defense discretionary and nondefense discretionary spending (NDD).

The annual defense appropriations bill funds the operations of the Department of Defense, atomic energy programs at the Department of Energy and various defense-related activities at other agencies.

The 11 non-defense appropriations bills fund a multitude of discretionary government operations and programs including law enforcement, disease and epidemic control, veterans’ healthcare, homeland security, education, prisons, highways and bridges, food and drug inspection, disaster relief, airports, health research, housing assistance, international affairs, space exploration and other scientific research, and many other functions of government.


Discretionary Spending is funded through 12 annual appropriations bills:  The House and Senate Appropriations Committees are organized into 12 subcommittees, with each subcommittee having responsibility for developing one regular annual appropriations bill.

The links below will take you to our associated site, Appropriations.com, which provides real-time updates and more than 20 years of history on each of the appropriations bills.