Many local governments also struggle to rein in their spending

The federal government has spent more money annually than it has collected every year since 2022

The government borrows money to cover this deficit, which increases the national debt. It’s the fourth most expensive spending category in the US budget.

Local governments borrow money for long-term projects by issuing municipal bonds

When a city needs to build a school, a road, or a water treatment plant, it usually issues a municipal bond—borrowing money from investors to be paid back over time. The market for these bonds now exceeds $4T.

Police spending is one of the largest budget items for local governments

Local governments finance most of the costs for police in the US. Total state and local criminal justice spending—covering police, courts, and corrections—reaches hundreds of billions of dollars annually.

See how local, state, and federal governments divide the cost of public services

Federal, state, and local governments share responsibility for funding public services. Education, roads, and social programs are funded through a complicated mix of taxes and intergovernmental transfers.

The powers of local government are rooted in state law, not the Constitution

Unlike the federal government or the states, local governments have no constitutional standing—they exist only because state law allows them to. A state legislature can redraw a city's boundaries, strip its powers, or dissolve it entirely.

In 2020, government entities spent $316.5B on infrastructure, with state and local governments accounting for 34.8% of that amount.

The US is one of two countries that abide by a predetermined borrowing limit

When the Treasury hits this “debt ceiling,” Congress has to pass a bill increasing the borrowing threshold. Failure to do so may lead to a financial crisis.

The national debt consists of public debt and intragovernmental debt

The national debt consists of money owed to private investors who have purchased Treasury securities and money owed by one sector of the government to another. They’re respectively called public debt and intragovernmental debt.

Modern monetary theory argues that governments can spend more without worrying about debt

In this discussion, economists Stephanie Kelton and Rohan Grey join Jon Stewart to explain modern monetary theory and debate whether expansive government spending can address inequality and economic crises without traditional debt constraints.

Minting a coin that can pay off the federal debt has been proposed as a quick fix to rampant borrowing

It’s uncertain how financial markets would react to such a large cash injection. Some economists warn it could trigger massive inflation. Others say the nation needs a clean slate.

Try to balance the budget

This interactive calculator challenges users to rebalance the federal budget by adjusting taxes and spending. Try your hand at weighing difficult trade-offs that shape long-term deficits, debt growth, and the sustainability of US public finances.

Tax policy can have a direct impact on the national debt

Past presidents' changes to tax codes have inflated the deficit. An expert on the topic explains the interplay between policy and the national budget while debunking 10 tax-related myths in this podcast.

Illinois has more local governments than any other state

As of 2022, there were a reported total of 90,837 local government units across the US. Illinois had the highest number with 6,930, followed by Texas with 5,533. Explore all the data from the 2022 Census of Governments, which takes place every five years.

Some argue that America is too dependent on consulting

Many major companies in America—not to mention the federal government—spend thousands of dollars a month paying to contract major consulting firms.

Student debt has a widespread economic impact

Student debt is no different than the big rent or car payment that comes out of someone’s paycheck every month: Its presence affects that household’s purchasing power. Multiply that household by the 43 million Americans who had outstanding federal loan debt in September 2023, and student debt’s impact becomes considerable.

US consumers collectively owe more than $1T to credit card companies—almost as much as they owe in auto loans.

Many issues facing urban environments cannot be solved by smart technologies

Although connecting systems to the Internet of Things can provide improved efficiency in municipal systems, problems such as limited affordable housing are driven by larger socioeconomic factors. Some experts suggest that local governments should focus resources on practical solutions to these issues rather than investing in smart technologies.

Listen to a weekly podcast about the people behind local government

The "GovLove" podcast features interviews with mayors, city managers, planners, and public servants at every level. It covers policies, challenges, and the daily realities of running local government across the US.

College budgets, explained

In this episode of the FutureU podcast, higher education experts Jeff Selingo and Michael Horn explore why so many colleges seem to be struggling financially. Hear how college budgets actually work, and why so many are unsustainable. It’s a crash course in revenue, expenses, and the big shifts schools need to make to survive.

Opposing policies over immigration and sanctuary cities define the contemporary debate over federalism

Disputes between the federal government, Republican-controlled states, and Democratic-controlled cities over immigration enforcement and sanctuary policies have become a central flash point in modern federalism. These conflicts will shape the future of state autonomy, federal authority, and the enforcement of national policy across jurisdictions.

Government shutdowns halt nonessential services and furlough federal workers

When Congress fails to pass a budget or stopgap funding, the government shuts down. This video explains which services stop, who is furloughed, and how shutdowns ripple through the economy and daily life.

The United States is one of only around two dozen countries with a fully federal system of government, in which power is divided between national and state governments.

Cities bore the brunt of the migrant surge in the 2020s

During the 2022-24 migration surge, cities such as New York, Chicago, and Denver faced shelter overcrowding, strained public services, and housing shortages—while the upfront costs fell almost entirely to states and cities.

Voter turnout in local elections is significantly lower than for national elections

While 64% of eligible voters cast ballots in the 2024 presidential election, turnout in municipal elections is usually below 15%. For school board elections—where members oversee more than 50 million students and $600B in spending—turnout is often around 5%-10%.

BNPL may be adding a layer of debt that doesn't show up in economic data

Given somewhat limited regulation in the BNPL space, data about its usage is limited—many BNPL firms have resisted sharing information about user purchases, finances, and more thus far. As more people begin using buy now, pay later services, experts are concerned about whether BNPL is adding a new layer of "hidden leverage" to the economy.

Bankruptcy is a legal way to manage overwhelming debt, whether for individuals, corporations, or even local governments

Chapter 7 is for liquidating personal assets to clear debts, Chapter 13 allows a repayment plan for individuals, and Chapter 11 lets businesses reorganize to stay afloat.

Volunteer fire departments are declining as communities shift to career staff

As populations increase and emergency calls grow more complicated, many communities are replacing volunteer fire departments with full-time professional staff—a change that boosts response capacity and reliability but also significantly raises costs.

The USPS spent $3.97B in 2024, accounting for .058% of the federal budget.

Despite being favored by 87% of Americans, Congress does not have term limits.

The idea for the Federal Reserve was conceived in secret in 1910—with bankers donning duck hunt gear for disguise while traveling to a remote country club on Georgia's Jekyll Island

The price of gas is a composite made up of several different factors, with the federal gas tax making up less than 20% of what drivers pay at the pump.

Gerrymandering works through two techniques: cracking opposing voters across districts to dilute their power, and packing them into a few to waste their votes in lopsided majorities.

Play the role of a student in a game where you try to navigate college and remain debt-free, selecting different income levels, high school experience, race, ethnicity, and more.

Hedge funds, the private investment firms that trade a wide swath of financial assets, make money by imposing steep fees on investors and from the fund's investment performance.

Use this tool to calculate the dollar value of your parental mental load, from meal planning to coordinating after-school care, then see resources that help generate solutions.

Some renewable energy sources may weaken the resiliency of electric grids by removing outage buffers provided by coal- and natural gas-fired plants, which provide the system with more time to find a new power source if a plant goes down.

Telehealth demand for GLP-1s for weight loss is booming as consumers seek easier access.

An investigation suggests a Scottish island became awash in forever chemicals via seafoam and seaspray—raising questions about what that means for the safety of other coastal areas.

Up to a million Girl Scouts sell about 200 million cookie boxes every spring, generating $800 million, largely because refusing a child is frowned upon

Some coin denominations have ridges etched on their sides, partly to prevent counterfeiting, in a practice called 'reeding.'

In 2009, the nation was gripped by the story of a missing young boy who was believed to be floating over Colorado in a homemade balloon, until it was revealed that he was at home the whole time.

Most of the observable universe's volume consists of voids and supervoids—enormous regions of space with little to no galaxies, stars, or light.

Researchers believe the brain consolidates memories, processes emotions, and plans for the future during dream states

Lesser-known phobias include turophobia, or the fear of cheese, and nomophobia, the fear of being without your cell phone.

Fireworks make a loud booming sound after exploding due to air expanding faster than the speed of sound.

Frank Lloyd Wright's houses are historically hard to sell because they're old, subject to local landmark commissions, and often unfashionable

While El Niño moves warm Pacific Ocean waters east along the equator, La Niña moves them west, shifting where rainfall will become more common for months.

70 years ago today, city officials in Santa Cruz, California, banned rock 'n' roll to protect its youth from corruption after witnessing a 'provocative' concert the night before.

Cultural norms about how to handle the bodies of loved ones in communities in West Africa have hampered Ebola responses.

SpongeBob exemplifies Aristotle's philosophy for living well because he understands that happiness doesn't come from external factors like money, recognition, or power.