Interest Costs Adding Up

The cost of interest on the national debt has surged and could soon exceed $1 trillion per year. This will act as a permanent drag on the economy until Congress is willing to address unsustainable deficit spending.

Federal Transfers Exceed $1 Trillion

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.

Improper Payments Have Skyrocketed

Between 2005 and 2021, improper payments grew at nearly seven times the rate of GDP.

Non-Defense Spending Spree

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.

Non-Defense Consuming More GDP

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.

Total Government Spending More Than Quadruples

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.

Federal Spending per Person Is Skyrocketing

Growing Spending Is the Problem

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.