Sometimes the President requests that Congress go outside the regular appropriations process to provide "emergency" funding for particular situations. From 1975-2002, supplemental spending averaged $14 billion a year. In the past seven years, however, supplemental spending has skyrocketed, first through military spending for military operations in Iraq and Afghanistan, and more recently, in financial rescue programs.
- Supplemental Spending for Military Operations
- Under President Bush, military operations in Iraq and Afghanistan were mostly funded by supplemental spending that was not included in his proposed budgets. President Obama promised to end this practice, so for FY 2010 the $130 billion he requested in supplemental spending to pay for war costs was included in his proposed budget.
- Financial Rescue Programs for FY 2007-2010
- Due to the economic downturn, several financial rescue programs have been implemented by the federal government. These are some of the programs:
- The Troubled Asset Relief Program (TARP) was signed into law October 3, 2008 in order to ease the credit crisis in our ailing economy. It provides the U.S. government with up to $700 billion to help failing financial institutions. Some of that money is already being repaid by these financial institutions.
- American Recovery and Reinvestment Act
- On February 13, 2009, Congress passed an economic stimulus package of $787 billion in new spending and tax cuts over the next several years to jump-start the economy and save jobs. The stimulus program provides aid to state governments, tax cuts for workers and businesses, expansion of health and unemployment benefits, and significant investments in areas such as infrastructure, renewable energy, and education.