This paper provides the first comprehensive estimates of emergency spending, with data going back to 1992. According to our estimates, Congress designated 8 percent of federal budget authority as emergency spending during that time. Emergency spending is roughly equal to the amount that Congress has spent on Medicaid and veterans’ programs combined.
Roughly half of the emergency spending since 1992 has been discretionary spending (federal programs that receive funding through annual appropriations), mostly in response to the Great Recession and COVID-19 pandemic and for disaster relief and military operations. Mandatory spending, also called direct spending, accounts for the other half. Five Great Recession and pandemic-related laws alone account for 87 percent of mandatory emergency spending. The budgetary share of emergency spending has grown to 12 percent of total budget authority over the past decade.
In this analysis, we provide several specific reforms that would reduce emergency spending, decrease abuse, and enhance oversight.