Summary of U.S. Government Expenditures and Income Total U.S. Government Budget (2024) Total Spending: $6.75 trillion Total Revenue: $4.9 trillion Deficit : $1.85 trillion National Debt (End of 2024): ~$36 trillion Mandatory Spending - (See Explanation) Government Expenditures : $6.75 Trillion 1. Social Programs & Public Assistance • Social Security: $1.46 trillion • Medicare & Medicaid (Healthcare Programs): o $912 billion • Veterans Benefits & Assistance: $210.9 billion • Other Social Welfare Programs: $1,482 per person (average amount of tax dollars allocated per taxpayer toward veteran and military benefits. o (includes SNAP, housing, and disability benefits) Discretionary Spending (See Explanation) 2. Department of Defense Budget (2025): $883 billion • Veterans Affairs & Military Benefits: $3,367 per person 3. Legislative Branch (Congress & Senate) • Salaries for Senators & Congress Members: o $94.28 million • Senate Offices & Committees: $68.36 million 4. Executive Branch • Department of Health & Human Services (HHS): o $130.7 billion (Discretionary) o $1.7 trillion (Mandatory) • Department of Commerce: o $11.4 billion (Discretionary) o $4 billion (Mandatory) • Department of Labor: $97.5 billion (See Description) 5. Federal Judiciary Budget (FY 2024): $9.1 billion • Salaries for Judges: $796 million (Mandatory) • Court Operations: $6.4 billion (Discretionary) o (salaries, expenses, clerks' offices, probation services) • Support Staff: Included in court operations and defender services (Discretionary) o $1.5 billion for federal defenders. • Other Expenses (Facilities, IT, & Other Judicial Services): o $400 million (court security, IT modernization, and other o infrastructure costs) (Discretionary) 6. Other Federal Spending - Over $1 trillion annually (EST) (Discretionary) • Infrastructure: Road and bridge projects. • Education: Federal student aid, grants, o and K-12 programs. • Research: Scientific funding (e.g., NIH, NASA, NSF). • Interest Payments on National Debt o (Over $1 trillion annually) (Mandatory) Government Income (Revenue) $4.9 Trillion 2. Other Sources • Tariffs & Customs Duties • Fees & Fines (passports, national parks, etc.) • Federal Reserve Transfers (profits from bond purchases)

How the Government Covers Its Deficit and Where the Fed Gets Money In 2024, the U.S. government spent $6.75 trillion but only collected $4.9 trillion in revenue (mainly from taxes). This created a $1.85 trillion deficit, meaning the government had to borrow to cover the shortfall. How the Government Borrows Money To cover the deficit, the government sells Treasury bonds, bills, and notes (IOUs) to investors, banks, and even foreign countries. Buyers of these bonds lend money to the government in exchange for future repayment with interest. How the Federal Reserve Helps The Federal Reserve (Fed) plays a role by buying these Treasury bonds when needed, injecting money into the economy. Unlike a regular bank, the Fed creates money digitally, Where Does the Fed Get Money? The Fed does not print cash to buy government debt. Instead, it adds money electronically to banks’ accounts, increasing the amount of money in the financial system. This helps keep interest rates low, making borrowing cheaper. Long-Term Effects The national debt grows as deficits pile up year after year. The Fed can later sell these bonds to remove excess money from the economy. If too much money is created, it can lead to inflation, meaning prices rise. Effect on National Debt The deficit adds to the national debt, which reached nearly $36 trillion by the end of 2024. This means the government continues to pay interest on borrowed money, further increasing future financial obligations.