AP GOV public policy

Necessary & Proper Clause

Gives Congress the power to pass laws needed to carry out its listed powers.

Federal Reserve

The central bank of the U.S. that controls the money supply and interest rates.

Discretionary Spending

Government spending that Congress decides on each year (ex: defense, education).

Means-Tested

A program where eligibility depends on income or financial need.

Medicaid

A means-tested government health insurance program for low-income individuals.

Tenth Amendment

Reserves powers not given to the federal government to the states or the people.

Economic Issues

Problems related to inflation, unemployment, taxes, debt, and economic growth.

Fiscal Policy

Government use of taxes and spending to influence the economy.

Mandatory Spending

Spending required by law, not set annually (ex: Social Security, Medicare).

Social Security

A federal program that provides retirement, disability, and survivor benefits.

Veterans' Benefits

Government programs that provide healthcare, education, and financial support to veterans.

Environmental Protection Agency (EPA)

Federal agency that enforces environmental laws and regulations.

Monetary Policy

The Federal Reserve's control of money supply and interest rates.

Federal Budget

The government's yearly plan for spending and revenue.

Entitlements

Programs that guarantee benefits to anyone who qualifies under the law.

Medicare

A federal health insurance program mainly for people age 65 and older.

Unemployment Insurance

Temporary financial assistance for people who lose their jobs.

Environmental Legislation

Laws passed to protect the environment and public health.

Entitlements & Federal Budget Impact

Entitlements are mandatory programs (like Social Security and Medicare) that automatically spend money, making up a large and growing portion of the federal budget.

Challenge with Social Security

Fewer workers are paying in compared to the number of retirees, threatening long-term funding.