United States of America · Federal GovernmentGovernment Budget
Fiscal Year 2024
Revenue by Source
Max = $2.43T (Individual Income Tax) · Total $4.92TExpenditure by Function
Max = $1.46T (Social Security) · Total $6.75TNet Interest Hit $881B — A Historic Milestone
For the first time in US history, net interest payments on the federal debt exceeded $880B in FY2024, surpassing both Medicare and national defense spending. This is purely the cost of servicing ~$28 trillion in debt held by the public at an average interest rate that has risen sharply since 2022. By 2051, CBO projects interest will become the single largest line item in the federal budget.
Interest: 13% of all outlaysSocial Security + Medicare = $2.33 Trillion
These two programs alone — Social Security ($1.46T) and Medicare ($874B) — account for 34.6% of all federal spending. Both are funded through dedicated payroll taxes but increasingly rely on general revenues as aging Baby Boomers strain trust fund balances. Social Security's trust fund is projected to be depleted by ~2033 without legislative action, triggering automatic 21% benefit cuts.
34.6% of all federal spendingHealth Spending: $1.79 Trillion Total
Adding Medicare ($874B) to the "Health" function (Medicaid, CHIP, ACA subsidies — $912B) gives total federal health spending of $1.79 trillion, or 26.5% of all outlays. The US spends more on healthcare per capita than any other high-income country, yet lacks universal coverage.
Health + Medicare: 26.5% of outlaysDefense: $874B — But True Security Cost Is Higher
The National Defense function ($874B) covers DoD operations, personnel, procurement, and R&D. Adding Veterans Benefits ($325B) and nuclear weapons (in Energy), intelligence, and homeland security brings total "national security" expenditure to roughly $1.3 trillion. Defense is ~13% of outlays but ~3% of GDP — far below Cold War peaks of 9–10% of GDP.
Defense: 13% of outlays · 3% of GDPIndividual Income Tax Dominates Revenue
At $2.43T, individual income taxes account for 49% of all federal receipts — nearly half the entire revenue base. The US collects relatively little from consumption taxes (VAT = $0; excise taxes only $101B), unlike most OECD countries.
Income tax: 49% of all receiptsEducation Figure Is Distorted by Student Loans
The $305B Education function looks large but is heavily distorted. In FY2023 the Biden administration reversed $330B in student loan cancellation accounting entries; in FY2024 this created a large paper increase. Actual cash spending on education programs (Pell grants, K-12 Title I, etc.) is far smaller — roughly $80-90B.
Actual cash education: ~$80-90BPrimary sources: Primary sources: U.S. Treasury Bureau of the Fiscal Service — Combined Statement of Receipts, Outlays, and Balances FY2024; Congressional Budget Office — Monthly Budget Review: Summary for Fiscal Year 2024; KFF — What Does the Federal Government Spend on Health Care?; Center on Budget and Policy Priorities — Where Do Our Federal Tax Dollars Go?; Committee for a Responsible Federal Budget — FY2024 Ends with $1.8 Trillion Deficit.
Methodology: All figures are actual FY2024 outlays and receipts from official Treasury final accounts, not estimates or projections. GDP reference: ~$28.68 trillion (BEA). The "Health" function ($912B) covers Medicaid, CHIP, and ACA marketplace subsidies; Medicare is reported separately. "Income Security" ($671B) includes SNAP, housing assistance, EITC, child tax credit outlays, SSI, and federal employee/military retirement. Net Interest ($881B) is net of interest income. Fiscal year runs October 1 – September 30.