The Federal Budget

Federal Budget

A plan outlining government expenditures and revenues for one fiscal year.

Fiscal Year

The period from October 1 to September 30 when the federal budget must be passed.

Mandatory Spending

Spending that is legally required and cannot be changed each year.

Social Security

A government program providing pensions for retired people, the disabled, and survivors.

Discretionary Spending

Funding for federal programs and agencies that Congress decides on annually.

Budget Deficit

When government spending exceeds its revenue, requiring borrowing to cover the gap.

Medicare

Health insurance provided to citizens over the age of 65.

Medicaid

Health insurance for low-income individuals and families.

CHIP

Children’s Health Insurance Program for providing health insurance to poor children.

Corporate Income Taxes

Taxes imposed on the profits of corporations.

Individual Income Taxes

Taxes deducted from individuals' paychecks, dividends, and interests.

Payroll Taxes

Taxes on paychecks allocated for Social Security and Medicare.

Government Shutdown

Occurs when Congress fails to pass appropriations bills by the fiscal year deadline.

Appropriations Bills

Legislation that allocates government funding, requiring approval by Congress.

Progressive Taxation

A tax system where higher earners pay a higher percentage than lower earners.

Regressive Taxation

A tax system where lower earners pay a higher percentage than higher earners.

State Budgets

Financial plans for state governments, often dependent on federal grants.

Federal Grants

Transfers of money from the federal to state and local governments for specific programs.

Economic Security and Social Services

Non-defense discretionary spending category aimed at providing assistance to citizens.

Interest on Debt

Payments made to cover borrowed funds used by the government.

Public Health and Medical Research

Discretionary spending category focused on health initiatives and scientific studies.

Transportation, Energy, and Agriculture

A category of non-defense discretionary spending aimed at infrastructure and resource management.

Veteran's Health

Funding for healthcare services specifically for military veterans.

Constitution

Framework establishing the federal budget process and powers of Congress.

Bipartisan Support

Agreement between both major political parties, often needed for budget approvals.

National Debt

The total amount of money that a country's government has borrowed.

Congressional Budget Office (CBO)

A federal agency that provides economic data to Congress for budget planning.

Government Bonds

Debt securities issued by the government to finance government spending.

Fiscal Responsibility

The principle of balanced budgets and prudent use of government resources.

Tax Cuts

Reductions in the tax rates that can affect government revenue and services.

Funding Levels

The amount of money allocated to specific programs or agencies by Congress.

Public Policy Execution

The implementation of government policies, requiring funding and appropriations.

Environmental and Conservation Funds

Funding categories aimed at protecting the environment and natural resources.

Disaster Response Allocations

Funding designated for responding to natural disasters and emergencies.

K-12 Education Funding

Financial support for primary and secondary education systems.

Unequal Tax Burden

The disparity in tax responsibilities among different income groups.

Fiscal Policy

Government policy that uses taxation and spending to influence the economy.