TeachMeFinance.com - explain entitlement
entitlement -- A legal obligation on the federal government to make
payments to a person, business, or unit of government that meets the criteria set in law. The Congress
generally controls entitlement programs by setting eligibility criteria and benefit or payment rules--not
by providing budget authority in an appropriation act. The source of funding to liquidate the obligation
may be provided in either the authorization act that created the entitlement or a subsequent appropriation
act. The best-known entitlements are the major benefit programs, such as Social Security and Medicare.
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