In its recent Budget Outline, the Administration claims to reduce the deficit by paying for its new initiatives, winding down the war in Iraq, and raising taxes on higher earners. In their budget, the Administration displays policy changes relative to a current policy baseline, which they constructed (see February 26 CRFB Analysis). The budget relative to the standard current-law baseline, however, reduces taxes, increases mandatory spending, and increases the deficit. This paper takes a close look at mandatory spending in the proposed budget.