The federal government spent $1.08 trillion on transfers to state and local governments in 2023. Such spending has increased rapidly in both inflation-adjusted terms and as a share of the economy, and is a significant factor behind large budget deficits and excessive federal control over the country.
Updated March 28, 2024
Source: Office of Management and Budget
Between 2005 and 2021, improper payments grew at nearly seven times the rate of GDP.
Federal Reserve of St. Louis, FRED
Bureau of Economic Analysis
Created December 9, 2022
Source: Paymentaccuracy.gov
Nondefense spending was over twelve times higher in 2022 than it was in 1965 after adjusting for inflation, and more than seven times as much per person. Meanwhile, the level of inflation adjusted defense spending has remained relatively consistent, especially on a per person basis.
Updated August 31, 2023
Source: Office of Management and Budget
Spending on national defense has declined as a share of the economy since 1962. In contrast, non-defense spending has soared, increasing due to the unsustainable growth of social benefit programs. In 2020, non-defense federal spending hit a record of 26 percent of GDP.
Updated March 28, 2024
Source: Office of Management and Budget
State and local government spending imposes a significant additional burden on taxpayers, on top of federal spending. Even after adjusting for inflation, combined per-person government spending has more than quadrupled since the mid-1960s.
Additional Sources: U.S. Census Bureau, St. Louis Federal Reserve.
Updated August 31, 2023
Source: Office of Management and Budget
Additional Sources: U.S. Census Bureau, St. Louis Federal Reserve.
Updated August 31, 2023
Source: Congressional Budget Office
Federal spending will increase by more than $3.5 trillion from 2023 through 2033. Three major budget categories—health care, social security, and interest on the debt—will account for 81 percent of this spending growth.
Updated February 8, 2024
Source: Congressional Budget Office
In 2023, major entitlement programs—Social Security, Medicare, Medicaid, Obamacare, and other health care programs—consumed 50 percent of all federal spending. Soon, this spending will be larger than the portion of spending for all other priorities (such as national defense) combined.
Updated March 28, 2024
Source: Office of Management and Budget
Federal spending is on an unsustainable trajectory, and is the key driver of growing deficits and debt. Spending is growing faster than the economy. Raising taxes is not a workable solution because taxes cannot grow faster than the economic base in the long run.
Updated February 8, 2024
Source: Congressional Budget Office
