According to the Constitution’s Preamble, the purpose of the federal government is “…to establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity.” These goals are achieved through government spending.
How much has the U.S. government spent this year?
The U.S. government has spent $2.44 trillion in fiscal year 2025 to ensure the well-being of the people of the United States.
Compared to the federal spending of $2.12 trillion for the same period last year (Oct 2023 - Jan 2024) our federal spending has increased by $319 billion.
$319 B
15%
Key Takeaways
The federal government spends money on a variety of goods, programs, and services to support the American public and pay interest incurred from borrowing. In fiscal year (FY) 2024, the government spent $6.75 trillion, which was more than it collected (revenue), resulting in a deficit.
The U.S. Constitution gives Congress the ability to create a federal budget – in other words, to determine how much money the government can spend over the course of the upcoming fiscal year. Congress’s budget is then approved by the President. Every year, Congress decides the amount and the type of discretionary spending, as well as provides resources for mandatory spending.
Money for federal spending primarily comes from government tax collection and borrowing. In FY 2024 government spending equated to roughly $2 out of every $10 of the goods produced and services provided in the United States.
Federal Spending Overview
The federal government spends money on a variety of goods, programs, and services that support the economy and people of the United States. The federal government also spends money on the interest it has incurred on outstanding federal debt. Consequently, as the debt grows, the spending on interest expense also generally grows.
If the government spends more than it collects in revenue, then there is a budget deficit. If the government spends less than it collects in revenue, there is a budget surplus. In fiscal year (FY) 2024, the government spent $6.75 trillion, which was more than it collected (revenue), resulting in a deficit. Visit the national deficit explainer to see how the deficit and revenue compare to federal spending.
Federal government spending pays for everything from Social Security and Medicare to military equipment, highway maintenance, building construction, research, and education. This spending can be broken down into two primary categories: mandatory and discretionary. These purchases can also be classified by object class and budget functions.
Throughout this page, we use outlays to represent spending. This is money that has actually been paid out and not just promised to be paid. When issuing a contract or grant, the U.S. government enters a binding agreement called an obligation. This means the government promises to spend the money, either immediately or in the future. As an example, an obligation occurs when a federal agency signs a contract, awards a grant, purchases a service, or takes other actions that require it to make a payment. Obligations do not always result in payments being made, which is why we show actual outlays that reflect actual spending occurring.
To see details on federal obligations, including a breakdown by budget function and object class, visit USAspending.gov.
The U.S. Treasury uses the terms “government spending,” “federal spending,” “national spending,” and “federal government spending” interchangeably to describe spending by the federal government.
According to the Constitution’s Preamble, the purpose of the federal government is “…to establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity.” These goals are achieved through government spending.
Spending Categories
The federal budget is divided into approximately 20 categories, known as budget functions. These categories organize federal spending into topics based on their purpose (e.g., National Defense, Transportation, and Health).
What does the government buy?
The government buys a variety of products and services used to serve the public - everything from military aircraft, construction and highway maintenance equipment, buildings, and livestock, to research, education, and training. The chart below shows the top 10 categories and agencies for federal spending in FY 2025.
U.S. Government Spending, FYTD 2025
Top 10 Spending by Category and Agency
PercentageDollars
21 %
Social Security
15 %
Medicare
14 %
National Defense
13 %
Net Interest
13 %
Health
9 %
Income Security
6 %
Veterans Benefits and Services
3 %
Education, Training, Employment, and Social Services
