Where Does $11.2 Trillion Actually Go?

The federal government spent $11.2 trillion in fiscal year 2025. That number is so large it's almost meaningless — until you start breaking it down. Where does it all go? Who decides? And is any of it actually accountable?

We dug into every dollar using data from USASpending.gov, the government's own transparency portal. Here's what we found.

Mandatory vs. Discretionary: The Split Nobody Talks About

Here's the dirty secret of the federal budget: most of it is on autopilot. Roughly two-thirds of all federal spending is “mandatory” — programs like Social Security, Medicare, and Medicaid that pay out automatically based on eligibility rules set by law. Congress doesn't vote on these amounts each year. They just happen.

The remaining third is “discretionary” spending — the part Congress actually debates and appropriates annually. This includes defense, education, transportation, and everything else people usually argue about. But here's the thing: even “discretionary” spending barely changes year to year. It goes up.

Then there's interest on the national debt — now exceeding $900 billion per year. That's money that buys nothing. No roads, no defense, no healthcare. Just servicing past decisions.

“Two-thirds of the federal budget runs on autopilot. Congress doesn't vote on it. It just happens.”

The Big Five: Where the Money Concentrates

Five agencies account for the vast majority of federal spending. These aren't obscure bureaucracies — they're the pillars of the federal apparatus:

Together, these five agencies account for over $8.7 trillion — roughly 78% of all federal spending. Everything else — Education, Justice, NASA, EPA, State Department — splits the remaining 22%.

See all 97 agencies ranked by spending →

Contracts vs. Grants: Two Ways to Spend $2 Trillion

Beyond the big mandatory programs, the government distributes money through two main channels: contracts (buying goods and services from companies) and grants (giving money to states, universities, nonprofits, and other organizations).

Grants outpace contracts by a wide margin — largely because Medicaid alone sends hundreds of billions to states. But contracts are where the real concentration happens: just 10 companies receive nearly 19% of all contract dollars.

See the top 50 federal contractors →

Defense, Social Programs, and the Interest Trap

The political debate usually frames spending as “defense vs. social programs.” But that framing misses the third player: interest on the debt.

Interest on the debt is now larger than the entire defense budget was 20 years ago. And unlike defense or social programs, cutting it requires paying down the debt — which neither party has shown any interest in doing.

Your Share: $34,000 Per Person

For a family of four, that's $136,000 per year in federal spending attributed to your household. That number exceeds the median household income in the United States. The government spends more per family than most families earn.

Of course, not all of that is funded by current taxes — a significant portion is borrowed. Which brings us back to that $900 billion in annual interest payments. We're spending money we don't have, and paying interest on the difference.

Is This Sustainable?

“Federal spending keeps growing regardless of which party controls Congress or the White House. The question isn't whether we're spending too much — it's whether anyone is even trying to stop.”

Under Republican presidents, spending grows. Under Democratic presidents, spending grows. Under unified government, spending grows. Under divided government, spending grows. The trajectory is remarkably consistent regardless of who holds power.

The DOGE effort has drawn attention to government waste, and there are real savings to be found in fraud, improper payments, and duplicative programs. But trimming around the edges won't change the fundamental math: mandatory spending grows automatically, interest compounds, and no one wants to be the politician who cuts Social Security or Medicare.

Until that changes, $11.2 trillion is just the starting point. Next year, it'll be higher.

See spending trends over the last decade →