*** REFERENCE PLEASE! Within a budget there are two categories: mandatory and discretionary. In which categories...

Two types of spending in the federal budget process are there.

1. Discretionary
2. Mandatory.

Discretionary spending: It is spending funds that are subject to the appropriations process, where Government sets a new funding level each fiscal year for programs covered in an appropriations bill. Roughly one-third, of the federal government’s activities are funded with discretionary spending.

Examples:-

1. Most of the direct activities of the federal government such as Federal Bureau of Investigations and Department of Defense, are funded with this process.
2. Almost all education programs are discretionary spending programs, except for a small number of programs such as student loans, some vocational grants, school lunch, and a few tax benefit programs.

Mandatory spending:- It is simply all spending that does not take place through appropriations legislation. Mandatory spending accounts for about two third of all federal spending.

Examples:-

1. Entitlement programs, such as Social Security, Medicare, and required interest spending on the federal debt.

Public health program falls under Medicare services. So that spending funds for public health programs are falls under the Mandatory spending.