1. Name _______________________________________________ Date ____________________
Period ____________ Economics / Mrs. Stewart
BUDGET OF THE UNITED STATES: PROPOSED FOR 2010
Estimated total spending: $3.6 trillion
EXPENDITURE CATEGORY PROPOSED PERCENT OF 2010 BUDGET
DOLLAR TOTAL (Your
AMOUNT SPENDING proposal!)
MANDATORY SPENDING: $2.184 trillion
Social Security $695 billion 19.3 19.3
Medicare $453 billion 12.6 12.6
Medicaid $290 billion 8.0 8.0
Other Mandatory Spending $582 billion 16.2 16.2
Interest on National Debt $164 billion 4.6 4.6
DISCRETIONARY SPENDING: $1.368 trillion
Department of Defense $663.7 billion 18.7
Other Discretionary Spending $194.4 billion 5.4
Health and Human Services $78.7 billion 2.2
Department of Education $46.7 billion 1.3
Department of Transportation $72.5 billion 2.0
Department of the Treasury $13.3 billion 0.4
Department of the Interior $12 billion 0.3
Departments of Commerce and Labor $27.1 billion 0.8
Department of Veterans’ Affairs $52.5 billion 1.5
Housing and Urban Development $47.5 billion 1.3
Department of State $51.7 billion 1.4
Department of Homeland Security $42.7 billion 1.2
Department of Energy $26.3 billion 0.7
Department of Justice $23.9 billion 0.7
Department of Agriculture $26.0 billion 0.7
NASA $18.7 billion 0.5
Keep in mind: 1% of $3.6 trillion is $36 billion

2. Tasks:
1. Working with ONE partner, use the above chart to plan out the federal budget for 2010. You
may increase or decrease spending on the discretionary spending programs only. For
descriptions of each department/category, see the next page.
2. You must alter spending for at least 4 discretionary programs/categories.
3. Construct two pie charts (attached). Chart #1 should reflect the actual budget adopted by
Congress. Chart #2 should reflect the changes in funding priorities decided upon by you and
your partner.
4. At the bottom of this page, describe why you made this change. You must be able to justify
your spending decisions!
**Your pie charts should be readable and colorful!
Why We Made Each Change (at least 4 changes are required):
1. Category:
Justification:
2. Category:
Justification:
3. Category:
Justification:
4. Category:
Justification:
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5. Category:
Justification:
6. Category:
Justification:

3. Social Security: The original Social Security Act (1935) and the current version of the Act, as amended
encompass several social welfare and social insurance programs. Some of the larger and better known
programs are:
• Federal Old-Age, Survivors, and Disability Insurance
• Unemployment benefits
• Temporary Assistance for Needy Families
• State Children's Health Insurance Program (SCHIP)
• Supplemental Security Income (SSI)
Medicare: Medicare is a social insurance program administered by the United States government,
providing health insurance coverage to people who are aged 65 and over, or who meet other special
criteria. The Medicare program also funds residency training programs for the vast majority of
physicians in the United States.
Medicaid: Medicaid is the United States health program for eligible individuals and families with low
incomes and resources. It is jointly funded by the states and federal government, and is managed by the
states. Among the groups of people served by Medicaid are certain eligible U.S. citizens and resident
aliens, including low-income adults and their children, and people with certain disabilities. Poverty alone
does not necessarily qualify an individual for Medicaid.
Other Mandatory Spending: Includes such things as unemployment insurance, welfare, and potential
disaster costs.
Department of Defense: The United States Department of Defense (DOD or DoD) is the federal
department charged with coordinating and supervising all agencies and functions of the government
relating directly to national security and the military.
Health and Human Services: The United States Department of Health and Human Services (HHS) is a
Cabinet department of the United States government with the goal of protecting the health of all
Americans and providing essential human services. Its motto is "Improving the health, safety, and well-
being of America".
Department of Education: The purpose of the Department of Education is to create programs to
generate funds for education and enforcement of privacy and civil rights laws.
Department of Transportation: The United States Department of Transportation (USDOT or just DOT) is
a federal Cabinet department of the United States government concerned with transportation. Its
mission is to "Serve the United States by ensuring a fast, safe, efficient, accessible and convenient
transportation system that meets our vital national interests and enhances the quality of life of the
American people, today and into the future."
Department of the Treasury: The Department of the Treasury is an executive department and the
treasury of the United States federal government. The Department prints and mints all paper currency
and coins in circulation through the Bureau of Engraving and Printing and the United States Mint. The
Department also collects all federal taxes through the Internal Revenue Service, and manages U.S.
government debt instruments.
Department of the Interior: The United States Department of the Interior (DOI) is the United States
federal executive department of the U.S. government responsible for the management and
conservation of most federal land and the administration of programs relating to Native Americans,
Alaska Natives, and Native Hawaiians, and to insular areas of the United States.

4. Department of Commerce: The mission of the Department of Commerce is to "promote job creation
and improved living standards for all Americans by creating an infrastructure that promotes economic
growth, technological competitiveness, and sustainable development." Among its tasks are gathering
economic and demographic data for business and government decision-making, issuing patents and
trademarks, and helping to set industrial standards.
Department of Labor: The United States Department of Labor is a Cabinet department of the United
States government responsible for occupational safety, wage and hour standards, unemployment
insurance benefits, re-employment services, and some economic statistics.
Department of Veterans Affairs: The United States Department of Veterans Affairs (VA) is a
government-run military veteran benefit system responsible for administering programs of veterans’
benefits for veterans, their families, and survivors. The benefits provided include disability
compensation, pension, education, home loans, life insurance, vocational rehabilitation, survivors’
benefits, medical benefits and burial benefits.
Housing and Urban Development: The United States Department of Housing and Urban Development,
also known as HUD, was founded as a Cabinet department in 1965, as part of the "Great Society"
program of President Lyndon Johnson, to develop and execute policy on housing and cities.
Department of State: The United States Department of State (often referred to as the State
Department), is the United States federal executive department responsible for international relations
of the United States, equivalent to the foreign ministries of other countries.
Department of Homeland Security: The United States Department of Homeland Security (DHS) is a
Cabinet department of the United States federal government with the primary responsibilities of
protecting the territory of the U.S. from terrorist attacks and responding to natural disasters.
Whereas the Department of Defense is charged with military actions abroad, the Department of
Homeland Security works in the civilian sphere to protect the United States within, at, and outside its
borders. Its stated goal is to prepare for, prevent, and respond to domestic emergencies, particularly
terrorism.
Department of Energy: The United States Department of Energy (DOE) is a Cabinet-level department of
the United States government concerned with the United States' policies regarding energy and safety in
handling nuclear material. Its responsibilities include the nation's nuclear weapons program, nuclear
reactor production for the United States Navy, energy conservation, energy-related research,
radioactive waste disposal, and domestic energy production.
Department of Justice: The United States Department of Justice (often referred to as the Justice
Department or DOJ), is the United States federal executive department responsible for the enforcement
of the law and administration of justice.
Department of Agriculture: The United States Department of Agriculture is the United States federal
executive department responsible for developing and executing U.S. federal government policy on
farming, agriculture, and food. It aims to meet the needs of farmers and ranchers, promote agricultural
trade and production, work to assure food safety, protect natural resources, foster rural communities
and end hunger in the United States and abroad.
NASA (National Aeronautics and Space Administration: The National Aeronautics and Space
Administration is an agency of the United States government, responsible for the nation's public space
program. In addition to the space program, it is also responsible for long-term civilian and military
aerospace research.

5. PIE CHART #1 – ACTUAL BUDGET ADOPTED BY CONGRESS FOR 2010
PIE CHART #2 – PROPOSED BUDGET WITH CHANGES IN FUNDING PRIORITIES