Noncompulsory government spending considered and approved during the annual appropriations process.
I See the Light
Federal spending can be broken down into two broad categories: mandatory and discretionary. Mandatory spending does not require an annual vote by Congress and is dictated by prior law – think Social Security and Medicare. Discretionary spending is subject to the annual appropriations process and includes funding for federal programs like defense, energy, and education. The appropriations process is driven by the majority party in close consultation with their minority counterparts, since 60 votes are necessary to pass appropriations bills in the Senate.
How Far I’ll Go
Congress entered this year’s appropriations cycle while still struggling to complete the FY2026 process. That overlap, which included the longest government shutdown in US history, and later combined with the Iran War, could reshape discretionary spending priorities.
The President’s Budget for FY2027 places significant emphasis on national security, domestic manufacturing, and immigration enforcement. Discretionary spending in recent years has generally been balanced evenly between the defense and non-defense accounts. The White House is hoping to convince their Republican allies on Capitol Hill to spend 63% of discretionary funding on defense while cutting non-defense discretionary programs like education, workforce development, public health, housing, and research by 23%.
To complicate this year’s appropriations process further, Democrats opposed funding for Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CPB) without significant policy reforms. They failed, and Republicans ultimately funded ICE and CPB programs for the duration of President Trump’s term through a partisan budget reconciliation bill, rather than the traditional appropriations process.
Let It Go
As the FY2027 appropriations process proceeds, the imbalance between defense and non-defense discretionary spending has brought Senate appropriations activities to a standstill. Senate Democrats are unwilling to move forward without parity in non-defense spending. And the President and House Republicans are looking to yet another budget reconciliation bill, further cementing reconciliation as a method to circumvent the appropriations process.
With appropriations being one of the last areas of genuine bipartisanship each year in Congress, it remains to be seen whether appropriations leaders – particularly Senate Appropriations Committee Chair Susan Collins (R-ME) and Vice Chair Patty Murray (D-WA) – can get the discretionary spending process back on a bipartisan track.
About Wonkology
What is a policy rider? How long is a legislative day? Political jargon can be headache-inducing. But your ability to understand how Washington works could significantly impact your business. Wonkology is an update from the Thompson Coburn Lobbying & Policy group. In each edition, we will decode Washington lingo by giving you a straightforward definition of a political term that is in the news.
