Federal spending that is not required by law is called Surplus spending. A budget surplus occurs when the government collects more taxes than it spends.
What is Federal spending?
Federal expenditures are how the government spends money. The three categories of spending in the United States are mandatory spending, discretionary spending, and interest on debt.
Mandatory spending is defined as spending that has been approved by Congress and does not require annual approval.
Thus, option D, Surplus spending, is correct.
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