Government spending decisions shape outcomes across households, industries, and communities, from defense readiness and public education to health care coverage and income support. In FY 2023, total federal outlays reached $6.134 trillion, up 7.5% from FY 2022, while mandatory programs and net interest remained major drivers. This page breaks down the largest categories—Medicare, Social Security, Medicaid, and K-12—and explains how deficits and projected interest costs can affect what’s possible next.
Key Takeaways
- 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.
- 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.
- 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.
- 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.
- 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, surging debt interest and a large mandatory share pushed outlays to $6.134 trillion.
Related reading
01 · Category
Debt Interest And Deficits22 stats
01
Net interest on public debt was $659 billion in FY 2023, up 34% from FY 2022.
02
Publicly held federal debt reached $26.3 trillion or 98% of GDP in FY 2023.
03
Federal deficit was $1.695 trillion or 6.3% of GDP in FY 2023.
04
Interest costs projected to hit $1 trillion annually by FY 2026 per CBO.
05
Debt held by Federal Reserve was $5.3 trillion as of end-2023.
06
Intragovernmental debt totaled $7.0 trillion in FY 2023, mainly Social Security trust.
07
Average interest rate on marketable debt was 2.5% in FY 2023.
08
Cumulative deficits since 2001 total $20 trillion through FY 2023.
09
State government debt outstanding was $1.2 trillion in FY 2022.
10
Local government debt service payments $90 billion annually average.
11
Unfunded liabilities for Social Security estimated $22 trillion present value.
12
Medicare Part A trust fund shortfall projected $400 billion by 2031.
13
Federal debt ceiling raised 78 times since 1960, last in 2023.
14
Gross federal debt hit $33.2 trillion or 123% GDP end-FY 2023.
15
Interest payments consumed 14% of federal revenues in FY 2023.
16
Primary deficit excluding interest was $1.036 trillion in FY 2023.
17
Household federal tax burden covered 78% of spending in FY 2023.
18
CBO projects debt-to-GDP at 166% by 2053 under current law.
19
Treasury borrowing via T-bills was $23 trillion gross in FY 2023.
20
Foreign holders of U.S. debt $8.0 trillion, 24% of public debt in 2023.
21
Mutual funds held $5.1 trillion in Treasuries end-2023.
22
Pension funds owned $1.2 trillion federal debt in FY 2023.
Interpretation
Debt Interest And Deficits Interpretation
In the debt interest and deficits category, net interest on the public debt jumped to $659 billion in FY 2023, a 34% rise from FY 2022, even as the federal deficit reached $1.695 trillion or 6.3% of GDP and debt continues to mount toward an expected $1 trillion in annual interest costs by FY 2026.
02 · Category
Defense Spending25 stats
01
In FY 2023, Department of Defense budget was $816.7 billion, 13.3% of total outlays.
02
U.S. military personnel compensation costs reached $182 billion in FY 2023.
03
Overseas contingency operations funding was $59 billion in FY 2023.
04
Defense procurement spending totaled $153 billion for weapons systems in FY 2023.
05
U.S. nuclear forces modernization costs projected at $634 billion over 10 years to 2030.
06
F-35 program lifetime cost estimated at $1.7 trillion through 2070.
07
Defense R&D spending was $143 billion in FY 2023, highest among agencies.
08
U.S. spent $877 billion on defense in FY 2022, 3.5% of GDP.
09
Operation and maintenance budget for DoD was $295 billion in FY 2023.
10
Military construction spending was $15.4 billion in FY 2023.
11
U.S. foreign military aid totaled $12.5 billion in FY 2023, mostly to Ukraine and Israel.
12
Defense health program budget was $38.2 billion in FY 2023.
13
Missile defense spending reached $10.8 billion in FY 2023.
14
U.S. Navy shipbuilding costs averaged $4.5 billion per destroyer in FY 2023 contracts.
15
Air Force procurement for 85 F-35s cost $11.8 billion in FY 2023.
16
DoD cybersecurity budget was $13.5 billion in FY 2023.
17
Veterans Affairs medical care spending was $116 billion in FY 2023.
18
U.S. intelligence community budget topline was $71.7 billion in FY 2023.
19
Space Force budget request was $30 billion for FY 2024.
20
Defense logistics and supply chain costs were $70 billion in FY 2023.
21
U.S. Army personnel strength costs $150 billion for 450,000 active duty in 2023.
22
National Guard and Reserves funding was $60 billion in FY 2023.
23
Defense contracts awarded to top 5 contractors totaled $150 billion in FY 2023.
24
U.S. spent 3.4% of GDP on defense in 2022, highest among NATO allies.
25
DoD fuel costs were $12 billion for 4.5 billion gallons in FY 2023.
Interpretation
Defense Spending Interpretation
In FY 2023, Defense Spending was anchored by a $816.7 billion Department of Defense budget equal to 13.3% of total outlays, and major programs suggest this share is likely to stay heavy as nuclear modernization is projected at $634 billion through 2030 and the F-35 program totals about $1.7 trillion through 2070.
03 · Category
Education And Infrastructure20 stats
01
Public K-12 education federal funding was $82 billion in FY 2023, 8% of total.
02
Pell Grants awarded $28 billion to 6.5 million students in FY 2023.
03
Student loan interest subsidies cost $40 billion in FY 2023.
04
Head Start program spending was $11.4 billion for 800,000 children in FY 2023.
05
Federal highway spending under IIJA was $52 billion annually average 2022-2026.
06
FAA airport infrastructure grants totaled $4 billion in FY 2023.
07
Amtrak subsidies were $2.4 billion in FY 2023.
08
FHA mortgage insurance guarantees backed $300 billion in loans in FY 2023.
09
HUD rental assistance via Section 8 cost $28 billion in FY 2023.
10
Rural utilities subsidies totaled $1.5 billion in FY 2023.
11
Army Corps of Engineers civil works budget $8.5 billion for flood control in FY 2023.
12
NASA budget was $25.4 billion in FY 2023 for space exploration.
13
National Science Foundation grants $9.5 billion in FY 2023.
14
Bureau of Indian Education funding $1 billion for tribal schools FY 2023.
15
Federal aid for special education (IDEA) was $14.2 billion in FY 2023.
16
Workforce Innovation and Opportunity Act spending $3.5 billion FY 2023.
17
TSA aviation security budget $9.1 billion in FY 2023.
18
FEMA disaster relief spending $40 billion in FY 2023 for wildfires/hurricanes.
19
Bureau of Reclamation water projects $1.2 billion FY 2023.
20
DOT transit formula grants $14 billion to local systems FY 2023.
Interpretation
Education And Infrastructure Interpretation
In FY 2023, federal investment in the Education And Infrastructure category was substantial and varied, with $82 billion going to public K-12 and $52 billion annually averaging under the IIJA for highways, alongside significant student support through $28 billion in Pell Grants and $11.4 billion for Head Start.
More related reading
05 · Category
Overall Budget30 stats
01
In fiscal year 2023, U.S. federal government total outlays reached $6.134 trillion, a 7.5% increase from FY 2022.
02
Mandatory spending accounted for $4.024 trillion or 65.6% of total federal outlays in FY 2023.
03
Discretionary spending totaled $1.684 trillion in FY 2023, comprising 27.4% of the federal budget.
04
Net interest payments on the debt surged to $659 billion in FY 2023, 10.7% of total outlays.
05
Federal spending per capita was $18,450in FY 2023 based on U.S. population of 333 million.
06
In FY 2022, total federal obligations were $6.85 trillion across all agencies.
07
Grants to states and localities amounted to $1.2 trillion in FY 2023, up 11% from prior year.
08
Federal spending as a percentage of GDP was 23.6% in FY 2023.
09
Outlays for income security programs totaled $1.15 trillion in FY 2023.
10
In 2022, U.S. government spending grew by 8.8% nominally compared to 2021.
11
Total federal budget authority for FY 2024 was appropriated at $7.0 trillion.
12
Emergency supplemental spending post-COVID reached $4.6 trillion from 2020-2023.
13
Federal procurement spending hit $703 billion in FY 2023.
14
In FY 2021, total outlays were $6.822 trillion, 31.2% of GDP.
15
Social insurance spending (Social Security, Medicare) was 45% of budget in FY 2023.
16
Federal employee compensation costs were $285 billion in FY 2023.
17
Capital investment spending by federal government was $450 billion in FY 2023.
18
In 2023, U.S. state and local government spending totaled $3.2 trillion.
19
Federal R&D funding was $201 billion in FY 2023.
20
Direct payments to individuals excluding Social Security were $780 billion in FY 2023.
21
FY 2024 projected outlays are $6.75 trillion per CBO baseline.
22
Historical peak spending-to-GDP was 41.3% in 1945 during WWII.
23
In FY 2020, pandemic-related spending added $2.2 trillion to outlays.
24
Federal subsidies to businesses totaled $150 billion in FY 2023.
25
Total federal loans outstanding were $1.4 trillion in 2023.
26
State government spending per capita averaged $10,200in FY 2022.
27
Local government spending focused 35% on education in 2022.
28
U.S. federal spending on veterans benefits was $301 billion in FY 2023.
29
Total government spending (federal+state+local) was 38% of GDP in 2022.
30
FY 2023 supplemental appropriations added $100 billion beyond baseline.
Interpretation
Overall Budget Interpretation
For the Overall Budget in FY 2023, total federal outlays hit $6.134 trillion and the mix is increasingly dominated by fixed commitments, with mandatory spending at $4.024 trillion or 65.6% and net interest rising to $659 billion or 10.7% of outlays.
report visual · Comparison
Federal spending pressures: deficits, outlays, and interest
In FY 2023, the U.S. federal deficit and outlays were up versus FY 2022, while net interest costs remained a growing share of spending.
Net interest payments on the debt surged to $659 billion in FY 2023, 10.7% of total outlays.10.7%
In fiscal year 2023, U.S. federal government total outlays reached $6.134 trillion, a 7.5% increase from FY 2022.7.5%
Federal deficit was $1.695 trillion or 6.3% of GDP in FY 2023.6.3%
Reference
Cite This Report
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APA
Timothy Grant. (2026, February 13). Government Spending Statistics. Gitnux. https://gitnux.org/government-spending-statistics
MLA
Timothy Grant. "Government Spending Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/government-spending-statistics.
Chicago
Timothy Grant. 2026. "Government Spending Statistics." Gitnux. https://gitnux.org/government-spending-statistics.
Sources & references
71 datasets cited across this report · attribution is report-level