Discretionary Spending

Discretionary spending is a spending category through which governments can spend through an appropriations bill. This spending is optional as part of fiscal policy, in contrast to entitlement programs for which funding is mandatory.

In the United States, discretionary spending refers to spending set on a yearly basis by decision of Congress. Such spending is usually authorized by Congress in another act. Provisions of an appropriations act that authorize spending are earmarks. When an authorization act also appropriates funds, it is called mandatory spending.