How much of the $6.8 trillion in federal spending is mandatory, discretionary, and interest? [OC]

Posted by USAFacts

9 comments

  2. I wonder how much of that “mandatory” $$ the Trump admin has cut already…

  3. Here’s a simplified look at federal spending:

    The United States federal government spent $6.78 trillion in fiscal year 2024 (the federal fiscal year runs from October to September). That’s about $19,900 per person.

    Federal spending decreased by 6.7% from FY 2023 to FY 2024. 2024’s spending was 23.8% higher than FY 2019, prior to the COVID-19 pandemic. From 1980 to 2024, spending increased 2.9 times. The US population also increased during this time, by about 1.5 times. Since spending grew more than the population, the government is now spending more per person, on average.

    The federal budget is divided into different categories. **Mandatory spending**, which includes programs like Social Security and Medicare, is required by law and now accounts for 61% of total spending—up from 45% in FY 1980. **Discretionary spending**, such as education and defense, is subject to annual congressional decisions and made up 26% of the FY 2024 budget. Additionally, **net interest payments** cover the cost of past borrowing and aren’t tied to specific programs.

    Finalized spending data is released annually, but the federal government also shares preliminary spending data each month to show how much the federal government is spending in the current fiscal year. As of February 2025, FY 2025 spending reached $3.0 trillion, which is 13.2% higher than spending in February 2024.

  4. That first graph really needs a revenue line as well so it’s easier to see how insane things have gotten.

  5. Someone with more econ knowledge than me please answer:

    Will the Fed raise interest rates? The tariffs are going to cause a huge spike in inflation, but it’s inflation that will cause economic cooling. Would it cause them to lower rates instead?

  8. How much does the US federal government spend? Technically: $0. It doesn’t spend money that exists. It creates money digitally out of thin air when it budgets money to expenditures – almost always imperialist military operations. Then that money gets spent around as debits and credits all over the place. Then later, it taxes much of that money back out of the supply. (I’m referring to modern monetary theory [MMT]).

  9. Interest on the national debt is beyond mandatory. This entire house of cards will collapse if that interest isn’t paid on time.

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