TRENDING NEWS
Back to news
13 Feb, 2025
Share:
What Is 'Mandatory Spending'? Social Programs at Risk in $2 Trillion Cut
@Source: newsweek.com
House Budget Committee Chair Jodey Arrington, a Texas Republican, submitted a resolution on Wednesday that sought to cut $2 trillion in mandatory spending, which covers social programs, over a 10-year period.Why It MattersA big part of President Donald Trump's agenda is slashing government spending. In the past few weeks, the focus has mostly been on tech billionaire Elon Musk's Department of Government Efficiency (DOGE) making cuts at agencies like the U.S. Agency for International Development (USAID) and the U.S. Department of Education, but Trump also has the power of a Republican majority in the House and Senate ready to help carry out his agenda.What To KnowHouse Republicans want to "reduce mandatory spending by $2 trillion over the budget window," according to Wednesday's resolution.But what exactly is mandatory spending?Mandatory spending is government spending mandated by existing laws. It is not subject to annual appropriations, where Congress sets aside a certain amount of funds for different agencies to use.The largest mandatory programs are Social Security and Medicare, and Medicaid and other healthcare programs made up roughly 15 percent of mandatory spending last year, according to the Congressional Budget Office.Mandatory spending also covers the following: Unemployment compensation Nutrition assistance programs like WIC and SNAP Supplemental Security Income Certain refundable tax credits Retirement benefits for federal government employees Veterans' benefits Student loans Agriculture programs Wednesday's resolution did not go into detail about which programs should be cut but directed House committees to come up with plans for reducing the federal deficit. Meanwhile, Trump and the Republican Party have made clear that they do not plan on touching Social Security and Medicare.The resolution also calls for up to $4.5 trillion in tax cuts and a $4 trillion increase to the debt ceiling.What People Are SayingHouse Speaker Mike Johnson, a Louisiana Republican, wrote on X, formerly Twitter, on Wednesday: "This budget resolution is a key step to start the process in delivering President Trump's America First agenda. With nearly every House Republican directly engaged in this deliberative process, this resolution reflects our collective commitment to enacting the President's full agenda—not just a part of it."He added, "There will be ongoing debates and discussions in the coming weeks, and we remain focused on working through the process to deliver on our promises made to the American people. There's still much work to be done, but we are starting on the right path."U.S. Representative Brendan Boyle, a Pennsylvania Democrat, said in a statement, per NBC News: "This Republican plan isn't just bad policy—it betrays the middle class. Their proposal slashes critical programs that millions of hardworking Americans rely on, all while adding trillions of dollars to the deficit to bankroll massive giveaways for giant corporations and billionaires like Elon Musk."The Republican National Committee (RNC) said in a pamphlet for July's Republican National Convention that the GOP would "fight for and protect social security and Medicare with no cuts, including no changes to the retirement age."President Donald Trump said in a CNBC interview in March: "So first of all, there is a lot you can do in terms of entitlements in terms of cutting and in terms of also the theft and the bad management of entitlements, tremendous bad management of entitlements."Trump's campaign spokesperson Karoline Leavitt told CNN in March that Trump was "clearly talking about cutting waste, not entitlements.""President Trump delivered on his promise to protect Social Security and Medicare in his first term, and President Trump will continue to strongly protect Social Security and Medicare in his second term," she added.What Happens NextThe House Budget Committee will vote on the resolution on Thursday. If the resolution is approved, it will move to a full House vote.
For advertisement: 510-931-9107
Copyright © 2025 Usfijitimes. All Rights Reserved.