mandatory spending include interest on the national debt and
Expenditures in the United States federal budget The United States federal budget consists of mandatory expenditures (which include entitlement programs such as Medicare and Social Security), discretionary spending for defense, Cabinet Departments (e.g., United States Department of Justice) and agencies (e.g., Securities & Exchange Commission), and interest payments on debt.
Temporary Assistance for Needy Families Funding for TANF underwent several changes from its predecessor, AFDC. Under AFDC, states provided cash assistance to families with children, and the federal government paid half or more of all program costs.[11] Federal spending was provided to states on an open-ended basis, meaning that funding was tied to the number of caseloads. Federal law mandated that states provide some level of cash assistance to eligible poor families but states had broad discretion in setting the benefit levels. Under TANF, states qualify for block grants. The funding for these block grants are fixed and the amount each state receives is based on the level of federal contributions to the state for the AFDC program in 1994[24] States are required to maintain their spending for welfare programs at 80 percent of their 1994 spending levels, with a reduction to 75 percent if states meet other work-participation requirements. States have greater flexibility in deciding how they spend funds as long as they meet the provisions of TANF described above.