Imagine a government that spent over six trillion dollars last year, a number so vast it means every American, from newborns to centenarians, effectively had $18,450 of federal money spent on their behalf.
Key Takeaways
- In fiscal year 2023, U.S. federal government total outlays reached $6.134 trillion, a 7.5% increase from FY 2022.
- Mandatory spending accounted for $4.024 trillion or 65.6% of total federal outlays in FY 2023.
- Discretionary spending totaled $1.684 trillion in FY 2023, comprising 27.4% of the federal budget.
- In FY 2023, Department of Defense budget was $816.7 billion, 13.3% of total outlays.
- U.S. military personnel compensation costs reached $182 billion in FY 2023.
- Overseas contingency operations funding was $59 billion in FY 2023.
- Medicare spending reached $839 billion in FY 2023, 13.7% of total outlays.
- Social Security outlays were $1.347 trillion in FY 2023 for 66 million beneficiaries.
- Medicaid expenditures totaled $616 billion federally in FY 2023.
- Public K-12 education federal funding was $82 billion in FY 2023, 8% of total.
- Pell Grants awarded $28 billion to 6.5 million students in FY 2023.
- Student loan interest subsidies cost $40 billion in FY 2023.
- Net interest on public debt was $659 billion in FY 2023, up 34% from FY 2022.
- Publicly held federal debt reached $26.3 trillion or 98% of GDP in FY 2023.
- Federal deficit was $1.695 trillion or 6.3% of GDP in FY 2023.
Federal spending reaches historic levels with debt interest payments rapidly rising.
Debt Interest and Deficits
1Net interest on public debt was $659 billion in FY 2023, up 34% from FY 2022.
Verified2Publicly held federal debt reached $26.3 trillion or 98% of GDP in FY 2023.
Verified3Federal deficit was $1.695 trillion or 6.3% of GDP in FY 2023.
Verified4Interest costs projected to hit $1 trillion annually by FY 2026 per CBO.
Directional5Debt held by Federal Reserve was $5.3 trillion as of end-2023.
Single source6Intragovernmental debt totaled $7.0 trillion in FY 2023, mainly Social Security trust.
Verified7Average interest rate on marketable debt was 2.5% in FY 2023.
Verified8Cumulative deficits since 2001 total $20 trillion through FY 2023.
Verified9State government debt outstanding was $1.2 trillion in FY 2022.
Directional10Local government debt service payments $90 billion annually average.
Single source11Unfunded liabilities for Social Security estimated $22 trillion present value.
Verified12Medicare Part A trust fund shortfall projected $400 billion by 2031.
Verified13Federal debt ceiling raised 78 times since 1960, last in 2023.
Verified14Gross federal debt hit $33.2 trillion or 123% GDP end-FY 2023.
Directional15Interest payments consumed 14% of federal revenues in FY 2023.
Single source16Primary deficit excluding interest was $1.036 trillion in FY 2023.
Verified17Household federal tax burden covered 78% of spending in FY 2023.
Verified18CBO projects debt-to-GDP at 166% by 2053 under current law.
Verified19Treasury borrowing via T-bills was $23 trillion gross in FY 2023.
Directional20Foreign holders of U.S. debt $8.0 trillion, 24% of public debt in 2023.
Single source21Mutual funds held $5.1 trillion in Treasuries end-2023.
Verified22Pension funds owned $1.2 trillion federal debt in FY 2023.
VerifiedDebt Interest and Deficits Interpretation
We've written ourselves a terrifying financial ghost story, yet we keep reading it by candlelight, somehow still not remotely scared enough.
Defense Spending
1In FY 2023, Department of Defense budget was $816.7 billion, 13.3% of total outlays.
Verified2U.S. military personnel compensation costs reached $182 billion in FY 2023.
Verified3Overseas contingency operations funding was $59 billion in FY 2023.
Verified4Defense procurement spending totaled $153 billion for weapons systems in FY 2023.
Directional5U.S. nuclear forces modernization costs projected at $634 billion over 10 years to 2030.
Single source6F-35 program lifetime cost estimated at $1.7 trillion through 2070.
Verified7Defense R&D spending was $143 billion in FY 2023, highest among agencies.
Verified8U.S. spent $877 billion on defense in FY 2022, 3.5% of GDP.
Verified9Operation and maintenance budget for DoD was $295 billion in FY 2023.
Directional10Military construction spending was $15.4 billion in FY 2023.
Single source11U.S. foreign military aid totaled $12.5 billion in FY 2023, mostly to Ukraine and Israel.
Verified12Defense health program budget was $38.2 billion in FY 2023.
Verified13Missile defense spending reached $10.8 billion in FY 2023.
Verified14U.S. Navy shipbuilding costs averaged $4.5 billion per destroyer in FY 2023 contracts.
Directional15Air Force procurement for 85 F-35s cost $11.8 billion in FY 2023.
Single source16DoD cybersecurity budget was $13.5 billion in FY 2023.
Verified17Veterans Affairs medical care spending was $116 billion in FY 2023.
Verified18U.S. intelligence community budget topline was $71.7 billion in FY 2023.
Verified19Space Force budget request was $30 billion for FY 2024.
Directional20Defense logistics and supply chain costs were $70 billion in FY 2023.
Single source21U.S. Army personnel strength costs $150 billion for 450,000 active duty in 2023.
Verified22National Guard and Reserves funding was $60 billion in FY 2023.
Verified23Defense contracts awarded to top 5 contractors totaled $150 billion in FY 2023.
Verified24U.S. spent 3.4% of GDP on defense in 2022, highest among NATO allies.
Directional25DoD fuel costs were $12 billion for 4.5 billion gallons in FY 2023.
Single sourceDefense Spending Interpretation
America is spending at a galactic scale—where trillion-dollar fighter jets meet billion-dollar destroyers—to ensure its earthly safety, proving that peace, like everything else, has a stunningly expensive price tag.
Education and Infrastructure
1Public K-12 education federal funding was $82 billion in FY 2023, 8% of total.
Verified2Pell Grants awarded $28 billion to 6.5 million students in FY 2023.
Verified3Student loan interest subsidies cost $40 billion in FY 2023.
Verified4Head Start program spending was $11.4 billion for 800,000 children in FY 2023.
Directional5Federal highway spending under IIJA was $52 billion annually average 2022-2026.
Single source6FAA airport infrastructure grants totaled $4 billion in FY 2023.
Verified7Amtrak subsidies were $2.4 billion in FY 2023.
Verified8FHA mortgage insurance guarantees backed $300 billion in loans in FY 2023.
Verified9HUD rental assistance via Section 8 cost $28 billion in FY 2023.
Directional10Rural utilities subsidies totaled $1.5 billion in FY 2023.
Single source11Army Corps of Engineers civil works budget $8.5 billion for flood control in FY 2023.
Verified12NASA budget was $25.4 billion in FY 2023 for space exploration.
Verified13National Science Foundation grants $9.5 billion in FY 2023.
Verified14Bureau of Indian Education funding $1 billion for tribal schools FY 2023.
Directional15Federal aid for special education (IDEA) was $14.2 billion in FY 2023.
Single source16Workforce Innovation and Opportunity Act spending $3.5 billion FY 2023.
Verified17TSA aviation security budget $9.1 billion in FY 2023.
Verified18FEMA disaster relief spending $40 billion in FY 2023 for wildfires/hurricanes.
Verified19Bureau of Reclamation water projects $1.2 billion FY 2023.
Directional20DOT transit formula grants $14 billion to local systems FY 2023.
Single sourceEducation and Infrastructure Interpretation
The federal budget paints a portrait of a nation constantly investing in its own ladder, from the first rung of Head Start to the launchpad at NASA, while also bracing for the moments we inevitably slip, like when nature sends the bill via FEMA.
Healthcare and Social Security
1Medicare spending reached $839 billion in FY 2023, 13.7% of total outlays.
Verified2Social Security outlays were $1.347 trillion in FY 2023 for 66 million beneficiaries.
Verified3Medicaid expenditures totaled $616 billion federally in FY 2023.
Verified4Medicare Advantage plans received $361 billion in payments in 2023.
Directional5Federal spending on CHIP was $17.5 billion in FY 2023.
Single source6Veterans health benefits cost $112 billion in FY 2023 for 9 million enrollees.
Verified7TRICARE spending for military families was $35 billion in FY 2023.
Verified8NIH research grants totaled $37 billion in FY 2023.
Verified9CDC budget was $9.2 billion in FY 2023, including vaccines for children.
Directional10SNAP (food stamps) benefits cost $113 billion in FY 2023 for 41 million recipients.
Single source11Unemployment insurance payments were $32 billion in FY 2023.
Verified12SSI payments totaled $65 billion in FY 2023 for 7.5 million disabled/elderly.
Verified13Earned Income Tax Credit refunds cost $73 billion in FY 2023.
Verified14Child Tax Credit payments were $105 billion in FY 2022 expansion year.
Directional15Federal employee health benefits program cost $60 billion in FY 2023.
Single source16Indian Health Service spending was $6.8 billion in FY 2023.
Verified17Substance Abuse and Mental Health Services Administration budget $7.5 billion FY 2023.
Verified18HRSA health centers received $6 billion for underserved areas in FY 2023.
Verified19ACA marketplace subsidies cost $70 billion in FY 2023.
Directional20Long-term care Medicaid spending was $200 billion in FY 2023.
Single sourceHealthcare and Social Security Interpretation
These statistics reveal that America's social safety net, from cradle to grave, is essentially a series of very expensive, very necessary promises we've made to each other to not let our neighbors collapse.
Overall Budget
1In fiscal year 2023, U.S. federal government total outlays reached $6.134 trillion, a 7.5% increase from FY 2022.
Verified2Mandatory spending accounted for $4.024 trillion or 65.6% of total federal outlays in FY 2023.
Verified3Discretionary spending totaled $1.684 trillion in FY 2023, comprising 27.4% of the federal budget.
Verified4Net interest payments on the debt surged to $659 billion in FY 2023, 10.7% of total outlays.
Directional5Federal spending per capita was $18,450 in FY 2023 based on U.S. population of 333 million.
Single source6In FY 2022, total federal obligations were $6.85 trillion across all agencies.
Verified7Grants to states and localities amounted to $1.2 trillion in FY 2023, up 11% from prior year.
Verified8Federal spending as a percentage of GDP was 23.6% in FY 2023.
Verified9Outlays for income security programs totaled $1.15 trillion in FY 2023.
Directional10In 2022, U.S. government spending grew by 8.8% nominally compared to 2021.
Single source11Total federal budget authority for FY 2024 was appropriated at $7.0 trillion.
Verified12Emergency supplemental spending post-COVID reached $4.6 trillion from 2020-2023.
Verified13Federal procurement spending hit $703 billion in FY 2023.
Verified14In FY 2021, total outlays were $6.822 trillion, 31.2% of GDP.
Directional15Social insurance spending (Social Security, Medicare) was 45% of budget in FY 2023.
Single source16Federal employee compensation costs were $285 billion in FY 2023.
Verified17Capital investment spending by federal government was $450 billion in FY 2023.
Verified18In 2023, U.S. state and local government spending totaled $3.2 trillion.
Verified19Federal R&D funding was $201 billion in FY 2023.
Directional20Direct payments to individuals excluding Social Security were $780 billion in FY 2023.
Single source21FY 2024 projected outlays are $6.75 trillion per CBO baseline.
Verified22Historical peak spending-to-GDP was 41.3% in 1945 during WWII.
Verified23In FY 2020, pandemic-related spending added $2.2 trillion to outlays.
Verified24Federal subsidies to businesses totaled $150 billion in FY 2023.
Directional25Total federal loans outstanding were $1.4 trillion in 2023.
Single source26State government spending per capita averaged $10,200 in FY 2022.
Verified27Local government spending focused 35% on education in 2022.
Verified28U.S. federal spending on veterans benefits was $301 billion in FY 2023.
Verified29Total government spending (federal+state+local) was 38% of GDP in 2022.
Directional30FY 2023 supplemental appropriations added $100 billion beyond baseline.
Single sourceOverall Budget Interpretation
America's annual bill for 2023 reveals a government whose biggest expense is essentially autopilot, with nearly two-thirds of the budget locked into promises past, while the alarming cost of financing our growing debt now consumes more than a dime of every dollar spent, leaving lawmakers with surprisingly little room to maneuver on the remaining quarter for everything else.
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