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Federal BudgetThe US federal budget is the government's annual plan for raising revenue and funding operations, programs, and services. It reflects national priorities by allocating resources among defense, social programs, infrastructure, and administration. Because Congress holds the constitutional power to tax and spend, the budget is both a policy document and a central tool of democratic governance, with direct effects on economic growth and everyday life.
The modern budget process begins when the president submits a proposed budget to Congress, typically in early February. Congress then develops budget resolutions and drafts 12 annual appropriations bills through House and Senate committees. These bills must be passed by both chambers and signed by the president. If funding is not approved by Oct. 1, Congress often relies on temporary continuing resolutions to keep the government operating.
Federal spending falls into three broad areas. Mandatory spending—such as Social Security, Medicare, and Medicaid—accounts for over half of outlays and is set by law. Discretionary spending funds annual debates over programs such as defense and education, while interest on the national debt consumes a growing share of the budget.Explore Federal Budget
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The House of Representatives controls the $7T federal budgetThe House holds the exclusive "power of the purse" to initiate revenue bills, a provision in the US Constitution designed to divide power with the Senate and give states with larger populations greater influence over federal budgeting. US House of Representatives ArchivesThe federal budget process begins nearly a year before funds are spentCreating the federal budget starts months in advance. This resource explains each stage, showing how the president proposes priorities, Congress reshapes and approves funding, and federal agencies implement the final budget. USAGovThe Budget and Accounting Act of 1921 created the modern federal budgetBefore 1921, federal funding was fragmented and ad hoc. This article traces how inefficiency and postwar pressures led Congress to pass the Budget and Accounting Act, creating a standardized, centralized federal budgeting process. BrookingsThe Constitution gives Congress sweeping control over the federal budgetArticle I, Section 8's Spending Clause authorizes Congress to tax, pay debts, and promote the "common Defence and general Welfare," making it one of Congress's most powerful tools—and the constitutional foundation of federal budget control. Congress.govThe current federal budget, deficit, and debt, in chartsThe US Treasury regularly publishes updated data on the federal budget, and this site hosts visualizations of that data. See reports on spending, revenues, deficits, and where the national debt stands. U.S. Department of the TreasuryState and local governments fund very different servicesLocal governments allocate 39% of their spending to K-12 education, while states allocate less than 1% directly—although much of local education funding actually comes from state and federal grants to local communities. States instead allocate their budgets to public welfare and health programs (45%) and higher education (15%). Urban InstituteICE was created in the aftermath of the 9/11 terrorist attacksCreated by the Homeland Security Act of 2002 following 9/11, ICE enforces federal immigration, customs, and trade laws under DHS. With over 20,000 staff across 400 global offices and an $8B budget, it focuses on detention, deportation, and cross-border criminal investigations. USAFactsThe 2025 budget bill significantly increased ICE's budget and role in federal law enforcement
The 2025 'Big Beautiful Bill' allocated $170B to immigration and border enforcement for use through 2029. ICE's nearly $100B share includes substantial increases in detention capacity and operational scope. The increased funding will make ICE the most heavily funded federal law enforcement agency. American Immigration CouncilRoughly 68.5 million Americans were enrolled in Social Security benefits in December 2024That amounted to nearly 90% of people ages 65 and older. The federal government spent $1.5T on Social Security in fiscal year 2024 (nearly a quarter of the total federal budget). This article details how these figures contribute to the perception that Social Security is “running out.” USAFactsThe federal government sent roughly $1.1T to state and local governments in 2024Federal grants support a large portion of state and local budgets, funding Medicaid, infrastructure, education, and housing. In FY 2024, these transfers made up about 16% of total federal spending. USAFactsThe EPA budget was 0.2% of total federal spending in 2024The EPA spent $13.7B in 2024, making it 23rd among federal agencies in total expenditures. Of that money, more than half was distributed to state environmental agencies for sustainability and environmental protection programs. USAFactsInvestors collectively own $28T in US Treasury securitiesThe 10-year Treasury yield is a central measure of the health of the economy, shaping how much both the government pays on its debt and the cost of borrowing for the private sector. This explainer provides stats and explainers on the important metric. EconofactUS defense spending peaked during the Korean War at 13% of GDPIn 1953, during the Korean War, US defense spending reached 13.58% of GDP—more than three times today’s level. That peak marked the most militarized moment of the Cold War, and spending has never returned to that level since. EconofactRoughly 22% of US tax dollars go to Social SecuritySocial security is the US government’s largest expense. You can see other government expenses in a visual breakdown of what one US tax dollar actually pays for. Total spending amounts were converted to cents on the dollar and percentages. Visual CapitalistThe Rockefellers’ family office expanded to become a multifamily officeThe Rockefellers created the first known single-family office in the late 1800s but the firm has evolved since to serve many wealthy American families. SpotifySome opponents of Title IX wanted exemptions for revenue-producing sportsOne of the main arguments against Title IX was that it would unfairly punish revenue-generating sports like football and men’s basketball. Senator John Tower (R-TX) proposed exempting those sports from Title IX’s reach. His amendment failed, but the push for a similar modification to the law continued through the decades. The New York TimesTracking US spending this yearSee an up-to-date accounting of how much money the US federal government has spent this fiscal year. This helpful and interactive webpage from the US Treasury Department gives an expansive overview of how the government has spent its money and how spending trends have evolved over time. US Treasury Fiscal DataNearly half of the discretionary funding in the US is allocated to national defenseThe US accounts for roughly 35% of global military spending, with defense taking up nearly half of discretionary funds. In this discussion, Michael E. O'Hanlon of the Brookings Institution explains why these levels are so high—and how they compare historically. EconofactNew Deal programs still shape mandatory federal spending todayMany of the largest items in today's federal budget—especially mandatory programs—trace their origins to Franklin D. Roosevelt's New Deal. This podcast explores how those policies reshaped federal spending and government responsibility. This is Democracy PodcastTry to balance the budgetThis 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. America Off BalanceVisualize government spending with USAFactsThis resource turns complex federal budget data into clear charts and summaries, letting users explore how much the government spends; where the money goes; and how revenue, deficits, and debt change over time. USAFactsGovernment shutdowns can cost the US economy billionsThe Congressional Budget Office estimated that the 2018-19 shutdown reduced economic output by about $11B, including a permanent loss of roughly $3B CNBCThe US government has shut down 22 times since 1976This resource breaks down every federal shutdown since 1976, showing how long each lasted and the budget disputes that caused them—revealing how routine funding failures have become in modern US politics. ThoughtCoGovernment shutdowns halt nonessential services and furlough federal workersWhen 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. USA TODAYWhat are continuing resolutions? If Congress cannot pass a formal budget, they must rely on what are called “continuing resolutions” to avoid a government shutdown. This helpful guide from the Bipartisan Policy Center outlines how these continuing resolutions are created, implemented, and their impact on the government. Bipartisan Policy CenterIndividual income taxes are the federal government's primary revenue source, see a tracker that breaks down where the rest of the budget comes fromThe US government historically makes nearly half of its total revenue last year from individual income taxes. But the US makes also makes money from a variety of other sources, including Medicare taxes and corporate income taxes. However, the federal government has run a deficit since 2001—reaching a peak of $3.13T in 2020. U.S. Department of the TreasuryMany local governments also struggle to rein in their spendingThe federal government isn’t the only one that holds debt. State and local governments borrow money to cover budget gaps, too. GoverningThe national debt is growing at a faster rate than the economy“The federal government faces an unsustainable fiscal future,” according to this bleak 2025 report on the nation’s budget from the US Government Accountability Office. If unaddressed, the country’s debt could double its gross domestic product, warns the nonpartisan agency. For individuals, this may mean stagnant wages, higher borrowing costs, and more expensive goods. US Government Accountability OfficeThe federal government has spent more money annually than it has collected every year since 2022The government borrows money to cover this deficit, which increases the national debt. It’s the fourth most expensive spending category in the US budget. US Department of the TreasuryThe federal debt ceiling 101The debt ceiling periodically takes center stage as Congress debates whether to increase or suspend this self-imposed limit on its borrowing authority. Learn the basics on this crucial feature of US fiscal policy with this Q&A. Committee for a Responsible Federal BudgetThe federal government's guide to the budget processSee how the US federal government’s annual budget is created, from authorization to appropriations. USAGov