Discretionary spending covers federal programs whose funding Congress sets anew each year through the 12 annual appropriations bills. It contrasts with mandatory spending — programs like Social Security, Medicare, and PACT Act veterans benefits — where spending levels are set by permanent law rather than annual votes. Congress's power of the purse over discretionary programs is exercised through the House and Senate Appropriations Committees, which write the 12 bills that fund everything from the VA to the Pentagon to the State Department. When Congress fails to pass these bills by October 1, the government either shuts down or operates on a continuing resolution.