How much does the US federal government spend?
Data updated October 29, 2024
About $6.2 trillion in fiscal year (FY) 2023. This averages about $18,400 per person in the US. The amount the government can spend depends on the amount of revenue it collects (e.g., through taxes, customs duties, and other sources). If it has to spend more revenue than it brings in, it borrows the funds, creating debt.
In FY 2023
$6.2T
was spent by the federal government
In FY 2023
$18.4K
per person average was spent by the federal government
Federal spending decreased by 8.5% from FY 2022 to FY 2023. 2023’s spending was 15.9% higher than FY 2019, prior to the COVID-19 pandemic.
From 1980 to 2023, spending increased 2.8 times. The US population also increased during this time, by about 1.5 times. Since spending grew more than the population, the government is now spending more per person, on average.
Federal spending decreased from $6.7 trillion in FY 2022 to $6.2 trillion in FY 2023.
Federal government spending, adjusted for inflation (FY 2023 dollars)
The federal government allocates funds across a wide range of programs and services. About 18% was spent on defense and veterans, and another 18% went to state and local governments. Other spending categories include debt interest payments and benefit programs such as SNAP.
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In FY 2023, about 58% of federal spending, or $3.6 trillion, went to Social Security, defense, and payments to states.
Federal government spending by category in FY 2023
Social Security and Medicare are two of the largest individual programs funded by the federal government. In FY 2023, 22% of the federal budget went to Social Security and 14% went to Medicare. These programs are part of the government's “mandatory spending,” which is required by law and is not subject to annual congressional appropriations. For example, the federal government is required to provide Social Security payments to all eligible beneficiaries at levels specified in the Social Security Act, regardless of cost. Congress does not have the power to reduce mandatory program spending unless it changes the rules or laws regarding the programs themselves. Mandatory spending has increased from 45% of the budget in FY 1980 to 62% in FY 2023.
The second type of federal spending is “discretionary.” This type of spending funds things like education and defense and is subject to congressional appropriations each year. Congress can increase or decrease discretionary spending each year depending on national priorities. Discretionary spending was 28% of the federal budget in FY 2023.
In addition to the mandatory and discretionary spending, the federal government also has to spend money on interest payments for the national debt. Net interest is the cost of debt from past borrowing and is not tied to specific programs or policies Congress can adjust each year.
In FY 2023, mandatory spending was 61% of the budget and discretionary spending was 28%.
Federal government spending by type
While finalized spending data is released annually, the federal government also shares preliminary spending data each month to show how much the federal government is spending in the current fiscal year. As of September 2024, FY 2024 spending reached $6.8 trillion, which is 10% higher than spending in September 2023.
The federal government has spent $6.8 trillion in FY 2024 so far.
Monthly cumulative spending of each fiscal year
