![handle is hein.crs/crsahbu0001 and id is 1 raw text is: Order Code RS20129
Updated September 2, 2008
Entitlements and Appropriated Entitlements
in the Federal Budget Process
Bill Heniff Jr.
Analyst on the Congress and Legislative Process
Government and Finance Division
Entitlements are programs that require payments to persons, state or local
governments, or other entities if specific eligibility criteria established in the authorizing
law are met. Entitlement payments are legal obligations of the federal government, and
eligible beneficiaries may have legal recourse if full payment under the law is not
provided. This report provides a brief explanation of spending for entitlements, including
so-called appropriated entitlements, and discusses the congressional procedural
constraints on legislation affecting such entitlement spending. For more information on
the budget process, see the CRS Guides to Congressional Processes at
[http://www.crs.gov/products/guides/guidehome.shtml].
Entitlement Spending
Entitlement spending is a form of mandatory spending (also referred to as direct
spending), which currently comprises more than half of total federal spending. Spending
on entitlements is not controlled through the annual appropriations process. Instead,
entitlement spending is based on the eligibility and benefit criteria established in law,
which is under the jurisdiction of the various authorizing committees of the House and
Senate. The total amount of spending on entitlements is determined by the aggregate total
of all individual benefits. Most entitlement spending, such as for Medicare, is not capped
at a specific spending level, and typically increases (but may decrease) each year as the
number of eligible beneficiaries and the authorized benefit payments increases (or
decreases). However, some entitlement spending - particularly entitlement payments
to states, such as the State Children's Health Insurance Program (commonly referred to
as S-CHIP) - is capped at a specific level provided in the authorizing law.
Most entitlement spending bypasses the annual appropriations process altogether and
is funded by permanent or multi-year appropriations in substantive law. Such spending
becomes available automatically each year, without legislative action by Congress.
Examples of such programs include Social Security, Medicare, and federal employee
retirement.
A portion of entitlement spending, such as Medicaid and certain veterans' programs,
is funded in annual appropriations acts. Such entitlement spending, referred to as](ViewImageLocal?handle=hein.crs/crsahbu0001&div=1&collection=&method=preview&ext=.png&size=3)
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