Where Do We Spend Our Money?
Key Takeaways
- The composition of the federal budget has changed dramatically since the middle of the 20th century. Social programs, particularly Social Security, Medicare, and Medicaid, dominate federal outlays.
- Interest payments on the federal debt have ballooned in recent years, and coming out to roughly the equivalent of defense spending.
- Defense spending, at $908 billion, remains has not grown as rapidly as social programs. Still, it remains a non-trivial part of federal outlays. Of note, since Russia's invasion of Ukraine in 2022, the US has allocated $123 billion to Ukraine--the majority of which has been military aid.
The federal budget reflects our nation's priorities and challenges. In 2024, total federal spending is estimated to be $6.94 trillion.
Federal Outlays Over Time
The trajectory of federal spending tells a story of expanding entitlements and mounting debt costs. As mandatory programs swell with an aging population, discretionary spending's share of GDP has remained remarkably constant—a testament to fiscal inertia rather than restraint.
Federal Government Outlays
Annual data (1940-2024) · figures in millions (2024 dollars)
Federal Government Spending Comparison
Drag the year markers above to modify the years in the pie charts and tables below
1940 Summary
2024 Summary
Interest on Federal Debt
The cost of America's borrowing binge has come due. Interest payments have surged due to rising interest rates, consuming an ever-larger share of tax revenues.
Interest on Debt
Quarterly data (1947-2024)
Average Interest Rate on Federal Debt
This chart shows the average interest rate the U.S. Treasury pays on all its interest-bearing debt, based on monthly Treasury data. It reflects the blended cost of borrowing across different securities.
Average Interest Rate
Monthly data (2001–2025)
Foreign Aid and Intervention
The United States provides significant foreign aid to countries around the world. The latest complete dataset from ForeignAssistance.gov put total obligations at $79 billion in fiscal year 2023.