Policy Basics: Non-Defense Discretionary Programs
NDD programs include a wide variety of priorities such as education, scientific research, infrastructure, national parks and forests, environmental protection, some low-income assistance, and public health, as well as many basic government operations including law enforcement, courts, and tax collection. The category also includes many programs related to national security, including foreign aid, homeland security, and services for veterans.
Of total NDD spending in 2016, 33 percent went to grants to states and localities, such as for K-12 education and highway projects, while 21 percent went to low-income programs, such as
In the following discussion, we break NDD programs into seven categories, as the chart below shows. (We assign each program to a single category to avoid double counting.)
The categories are:
1.
Health care and health research constituted 21 percent (
Nearly half of NDD health spending provides hospital and medical care for veterans. Another quarter finances research ranging from cancer treatments to vaccine development, primarily through the
2. Transportation and Economic Development
Transportation and economic development programs constituted 19 percent (
Most of this spending goes to air, ground, and water transportation programs such as the National Highway System, air traffic control and aviation safety, the
3. Education and Training
Education and training programs constituted 15 percent (
Less than one-sixth (15 percent) of the spending in this category supports programs that provide early education and other services for children and families, seniors, and people with disabilities. This includes
4. Economic Security
Economic security programs constituted 13 percent (
Housing assistance accounts for more than half (56 percent) of the spending in this category, including vouchers and other rental assistance for low-income households, aid for the homeless, and assisted housing for elderly and special-needs populations.
This spending category also covers food and nutrition programs, such as WIC (the
5. Science, Environment, and Energy
Science, environment, and energy programs constituted 12 percent (
Roughly half of the spending in this category supports conservation and the management of natural resources, such as national parks, and other environmental programs, including those in the
One-quarter of the spending covers
6. Law Enforcement and Governance
Law enforcement and governance constituted 12 percent (
About three-quarters of this category goes for law enforcement, criminal justice, and correctional activities, such as the
7. Diplomacy and International Affairs
Diplomacy and international affairs constituted 9 percent (
Almost half of the spending in this category goes to international development and humanitarian assistance. This subcategory includes disaster assistance, the
Remaining spending supports international security activities and programs such as peacekeeping operations and efforts to prevent the proliferation of nuclear weapons, and the maintenance and protection of
NDD Spending Projected to Fall as Share of Economy
Traditionally, annual funding for both defense and non-defense discretionary programs is provided through 12 appropriations bills covering various parts of the government. In contrast, spending on "entitlement" or "mandatory" programs such as
The 2011 Budget Control Act (BCA) established caps that limit overall appropriations for most defense and non-defense discretionary programs in each year through 2021. Some appropriations are exempt from the caps, including those for overseas military and anti-terrorism operations, disaster relief, other emergencies, and certain activities to fight fraud and abuse. In addition, spending from the highway and other transportation trust funds are counted as NDD spending but are not subject to the caps.
The BCA also mandated further reductions in the caps beginning in 2013 -- through a process called "sequestration" -- because
With these constraints, NDD spending has been declining as a share of the economy since 2010 and is projected to continue to do so (see chart below). Even with the most recent temporary relief, NDD spending in 2018 will reach a record low as a percent of gross domestic product, with data going back to 1962. The percentage is likely to continue falling in subsequent years.
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