What does the federal government spend the most money on?

The government spends money for a variety of reasons: Reduce inequality (welfare payments like unemployment benefit). Provide public goods (fire, police, national defence) Provide important public services like education and health (merit goods)Nov 24, 2015 read more

Federal Spending: Where Does the Money Go Federal Budget 101. Facebook Twitter. In fiscal year 2015, the federal budget is $3.8 trillion. These trillions of dollars make up about 21 percent of the U.S. economy (as measured by Gross Domestic Product, or GDP). It's also about $12,000 for every woman, man and child in the United States. read more

Most of the remainder paid for the two major government health programs, Medicare and Medicaid. Discretionary Spending . Discretionary spending covers programs that require appropriations by Congress. Unlike mandatory spending, both the programs and the authorized levels of spending require regular renewal by Congress. read more