2009 Federal Revenue and Spending Book of Charts

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Mandatory Spending Has Increased Five Times Faster Than Discretionary Spending

Discretionary spending, the portion of the budget subject to annual review or budget debate, increased 203 percent from 1965 to 2009. Mandatory spending, consisting mostly of Social Security, Medicare, and Medicaid, which run on autopilot, rose 832 percent from 1965 to 2008. In 2009, spending from the Troubled Asset Relief Program (TARP) and President Obama's $250 billion placeholder for additional stabilization efforts will increase mandatory spending over 50 percent.

Total Discretionary Spending vs. Mandatory Spending in Inflation-Adjusted Dollars (2008)

Spending
 
Source: White House Office of Management and Budget.

Key Research:
Federal Spending

Defense Spending Remains Below Historical Levels Despite the War on Terror



Federal Spending Grew Nearly Seven Times Faster Than Median Income



Federal Spending Is Growing Faster Than Federal Revenue



Since 9/11, Federal Spending Increased Much Faster Than Inflation



Federal Spending Has Increased Steadily Regardless of Congressional Leadership



Federal Spending per Household Is Skyrocketing



FY 2009 Had the Second-Highest Number of Earmarks in History Despite Change in Congressional Leadership



Mandatory Spending Has Increased Five Times Faster Than Discretionary Spending



Mandatory Spending Will Increase by $7,538 per Household in 2009



Medicare and Medicaid Spending Will Rise with Increasing Health Care Costs



Obama's Budget Would Return Defense Spending to Pre-9/11 Levels



Total Government Spending More Than Doubled Since 1965