Federal spending falls into 2 categories: mandatory and discretionary

Nearly half of the discretionary funding in the US is allocated to national defense.

New Deal programs still shape mandatory federal spending today

Many of the largest items in today's federal budget—especially mandatory programs—trace their origins to Franklin D. Roosevelt's New Deal. This podcast explores how those policies reshaped federal spending and government responsibility.

Use this calculator to find out the programs and services your federal income taxes fund.

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Government shutdowns, 101

Roughly a quarter of the US federal government's spending must be approved annually through a set of 12 appropriations bills in Congress. When they aren't, a government shutdown ensues, where federal agencies are legally barred from spending any further money on nonessentials. This explainer covers the basics of government shutdowns and their impact on the broader culture.

Government shutdowns halt nonessential services and furlough federal workers

When Congress fails to pass a budget or stopgap funding, the government shuts down. This video explains which services stop, who is furloughed, and how shutdowns ripple through the economy and daily life.

The federal deficit is the gap between what the US spends and what it collects.

The federal government sent roughly $1.1T to state and local governments in 2024

Federal grants support a large portion of state and local budgets, funding Medicaid, infrastructure, education, and housing. In FY 2024, these transfers made up about 16% of total federal spending.

Visualize government spending with USAFacts to see complex federal budget data as clear charts and summaries, and explore where the money goes as well as how revenue, deficits, and debt change over time.

See how local, state, and federal governments divide the cost of public services

Federal, state, and local governments share responsibility for funding public services. Education, roads, and social programs are funded through a complicated mix of taxes and intergovernmental transfers.

The federal government has spent more money annually than it has collected every year since 2022.

The Constitution gives Congress sweeping control over the federal budget

Article I, Section 8's Spending Clause authorizes Congress to tax, pay debts, and promote the "common Defence and general Welfare," making it one of Congress's most powerful tools—and the constitutional foundation of federal budget control.

The Social Security Administration (SSA) accounted for 22.4% of all federal spending in 2024

The SSA is an independent executive branch agency that is primarily responsible for administering Social Security benefits. In fiscal year 2024, The SSA, ranking second among federal agencies in terms of total spending, behind only the Department of Health and Human Services.

An analysis of the National Science Foundation's historical budget and spending

The NSF accounted for 0.1% of all federal spending in FY2024, with $9.39B—just over twice its FY1991 spending—out of $6.78T overall. Almost 99% of these funds ($9.29B) went to general science and basic research, with the rest allocated to national defense.

State and local governments fund very different services

Local governments allocate 39% of their spending to K-12 education, while states allocate less than 1% directly—although much of local education funding actually comes from state and federal grants to local communities. States instead allocate their budgets to public welfare and health programs (45%) and higher education (15%).

Charting where federal revenue comes from

About 50 percent of federal revenue comes from individual income taxes, 7 percent from corporate income taxes, and another 36 percent from payroll taxes that fund social insurance programs. See breakdown in charts here.

Transit is funded through a three-tier system, and the federal government is the smallest piece

In 2019, the federal government covered about one-sixth of the $79B spent on public transit. States and localities make up the rest. About 85% of all transit trips are taken by bus or heavy rail, and nearly 4 in 10 US transit trips occur in the New York City metro area.

Treasury bonds, notes, and bills are critical vehicles for the federal government to raise money for public expenses and manage the national debt.

The House of Representatives controls the $7T federal budget

The House holds the exclusive "power of the purse" to initiate revenue bills, a provision in the US Constitution designed to divide power with the Senate and give states with larger populations greater influence over federal budgeting.

Federal government supports—but doesn't run—K-12 schools

The Department of Education contributes about 8% of K-12 funding and administers targeted grants, civil‑rights enforcement, research, and data collection. Crucially, it is legally prohibited from directing curriculum, personnel decisions, or instructional content, leaving that control to states and districts.

The federal budget process begins nearly a year before funds are spent

Creating the federal budget starts months in advance. This resource explains each stage, showing how the president proposes priorities, Congress reshapes and approves funding, and federal agencies implement the final budget.

Tax policy can have a direct impact on the national debt, with past presidents' changes to tax codes inflating the deficit.

The federal government distributes more than $160M in grants directly to libraries each year

The Institute of Museum and Library Services distributes funds annually to State Library Administrative Agencies, which support statewide initiatives and channel funds to public and academic libraries.

The Federal Emergency Management Agency leads the US response to disasters

Established in 1979, FEMA coordinates the government's response to hurricanes, wildfires, floods, and other disasters, providing funding, logistical support, and recovery assistance. In FY 2024, the agency spent $35.1B, nearly 40% of the Department of Homeland Security's total budget.

See which states contribute the most and least to the federal government.

See a comprehensive list of every type of currently available federal student loan, from Direct Subsidized Loans to Parent PLUS loans.

Federal systems are a minority among the United Nations' 193 members

Of the United Nations' 193 member countries, roughly two dozen use a federal system, dividing power constitutionally between national and subnational governments. This group includes the United States, India, Canada, Germany, and more. The video walks through examples of how these states operate.

The EPA budget was 0.2% of total federal spending in 2024

The EPA spent $13.7B in 2024, making it 23rd among federal agencies in total expenditures. Of that money, more than half was distributed to state environmental agencies for sustainability and environmental protection programs.

Medicare vs. Medicaid explained in 60 seconds

Medicare and Medicaid both provide government-funded healthcare but serve different groups. Medicare, launched in 1965, covers those 65 and over and has three parts: hospital stays (A), outpatient care (B), and prescriptions (D). Medicaid, funded by federal and state governments, supports low-income individuals, with eligibility varying by state.

Revenue from tariffs goes to the US Treasury's general fund.

Congress often uses stopgap bills to keep the government running

When lawmakers fail to pass a full budget, they rely on continuing resolutions to fund the government temporarily. This guide explains how CRs are enacted, how they function, and why they disrupt normal operations.

The current federal budget, deficit, and debt, in charts

The US Treasury regularly publishes updated data on the federal budget, and this site hosts visualizations of that data. See reports on spending, revenues, deficits, and where the national debt stands.

Police spending is one of the largest budget items for local governments

Local governments finance most of the costs for police in the US. Total state and local criminal justice spending—covering police, courts, and corrections—reaches hundreds of billions of dollars annually.

Roughly 22% of US tax dollars go to Social Security

Social security is the US government’s largest expense. You can see other government expenses in a visual breakdown of what one US tax dollar actually pays for. Total spending amounts were converted to cents on the dollar and percentages.

The Budget and Accounting Act of 1921 created the modern federal budget

Before 1921, federal funding was fragmented and ad hoc. This article traces how inefficiency and postwar pressures led Congress to pass the Budget and Accounting Act, creating a standardized, centralized federal budgeting process.

Individual income taxes are the federal government's primary revenue source, see a tracker that breaks down where the rest of the budget comes from

The US government historically makes nearly half of its total revenue last year from individual income taxes. But the US makes also makes money from a variety of other sources, including Medicare taxes and corporate income taxes. However, the federal government has run a deficit since 2001—reaching a peak of $3.13T in 2020.

The federal government offers billions in student aid each year in the form of scholarships, grants, loans, and more

The very first—and necessary—step is to fill out a federal application to get your information into the system. Known as the Free Application for Federal Student Aid, or FAFSA, this key form must be completed by Oct. 1 for the following academic year.

Watch a breakdown of tax breaks most Americans don't know about

Programs like healthcare savings accounts or flexible spending accounts are tax-free accounts that are designed to help lower healthcare costs. However, many Americans don't use them and don't understand how they work.

The US government has shut down 22 times since 1976

This resource breaks down every federal shutdown since 1976, showing how long each lasted and the budget disputes that caused them—revealing how routine funding failures have become in modern US politics.

Where colleges get their money, visualized

If you're curious about how different colleges and universities generate their revenue, this National Center for Education Statistics webpage offers a clear visual breakdown. See how public, private nonprofit, and for-profit institutions fund their operations, highlighting the differences between funding sources depending on the type of institution.

NASA's budget makes up less than 0.4% of total US spending

NASA's annual budget consists mainly of human spaceflight activities (50%) and robotics and scientific research programs (30%). It peaked at almost $70B in 1964 but has been below $30B since 1995, coming from discretionary nondefense funds.

Social Security’s financial operations are handled through two federal trust funds

One is called the Old-Age and Survivors Insurance trust fund, and the other is called the Disability Insurance trust fund. Combined, these two trust funds were valued at roughly $2.7T as of the end of 2024.

Social Security’s financial operations are handled through two federal trust funds

One is called the Old-Age and Survivors Insurance trust fund, and the other is called the Disability Insurance trust fund. Combined, these two trust funds were valued at roughly $2.7T as of the end of 2024.

See a chart showing how much the US federal government pays in interest on its debt.

As of 2022, about 40% of scientific research aimed at generating new knowledge has been funded by the federal government—a percentage that has decreased from a high of 72% in 1967.

The federal debt ceiling 101

The debt ceiling periodically takes center stage as Congress debates whether to increase or suspend this self-imposed limit on its borrowing authority. Learn the basics on this crucial feature of US fiscal policy with this Q&A.

Understanding why Republicans have challenged funding for the NSF

Lack of Congressional support in funding the National Science Foundation has often been justified by the party's interest in cutting federal deficits and reducing waste for seemingly frivolous research projects. However, an analysis of NSF grant data from 1992 to 2018 shows that awards were given to Democratic constituencies at disproportionately higher rates than to Republican ones, despite a lack of evidence of partisanship in proposal reviews. (Some readers may experience a paywall.)

Congressional committees quietly shape most legislation

This video explains how 20 congressional committees—standing, select, and conference—perform much of Congress's work, from drafting legislation and holding hearings to overseeing executive branch agencies.

The 1956 Federal-Aid Highway Act spent $25B to build 41,000 miles of freeway

Sold to Congress as a national defense measure, the Interstate Highway Act committed the federal government to covering 90 cents of every dollar spent on a 41,000-mile freeway network, a subsidy that reshaped American cities and supercharged car dependency.

The national debt consists of public debt and intragovernmental debt.

A history of every US government shutdown

There have been 21 shutdowns of the federal government in US history, a result of Congress's failure to pass appropriations bills in time. While the cause of most of the shutdowns stems from issues around the national debt and budget, a few originated in fights over unrelated policies. Dive into the history of each one with this comprehensive list.