Latest spending projections: CBO's 2012 August Update

The $3.6 Trillion Federal Budget breaks down as follows in FY 2012:

• Social Security: $769 billion
  
  Does Social Security add to the national debt? Yes and no....
  
  
• Medicare: $555 billion (Medicare is national health insurance administered by the federal government for people 65 and over and disabled Americans. It is financed by payroll taxes, general tax revenues, premiums and copayments.)
  
  CRS Medicare Primer
  Medicare Physician Payments and the Sustainable Growth Rate (SGR)
  Medicare Provisions in the Affordable Care Act (CRS, 2011)
  
  
• Medicaid: $259 billion (Medicaid, financed jointly by the federal and state governments, is administered by the states. It is the major health program for low-income Americans. A large portion of Medicaid pays for long-term care for low-income elderly.)
  
  CRS Medicaid Primer
  CRS Overview of Affordable Care Act, which expands Medicaid
  Cost Estimate of the Affordable Care Act (CBO, 2010)
  Cost Estimate of the Affordable Care Act (CBO, 2011 Update)
  Cost Estimate of the Affordable Care Act (following the Supreme Court Decision (CBO, 2012)
  Overview of Affordable Care Act (CRS, 2012)
  Nonpartisan Kaiser Family Foundation Resources on Affordable Care Act
  Nonpartisan Kaiser Family Foundation Summary of Affordable Care Act
  
  

• Defense Spending: $708 billion
  
  
• Other Mandatory (Entitlement) Spending: $473 billion
  
  

  "Mandatory spending," as the words imply, is not discretionary, in the sense that Congress does not make annual decisions on how much to appropriate to these programs. Most mandatory spending is comprised of "entitlement programs," the costs of which are driven by benefit or payment formulas written into the law. Social Security, Medicare and Medicaid are the largest mandatory spending programs comprising 43% of the budget, as displayed in the pie chart above.
  
  Other mandatory spending comprises 13% of the budget, the largest of which are projected to cost the following in FY 2012:

  • Federal Civilian Retirement: $87 billion
  • Food Stamps (now known as "SNAP"): $80 billion
  • Earned Income and Child Tax Credits: $79 billion (taxpayers receive "refunds" larger than their tax liabilities)
  • Unemployment Compensation: $77 billion (has increased dramatically due to high unemployment)
  • Veterans Benefits: $71 billion
  • Military Retirement: $49 billion
  • Supplement Security Income: $47 billion (minimum monthly benefit for aged, blind and disabled who are not covered by Social Security)
  • Family Support: $25 billion (includes the state-run Temporary Assistance for Needy Families program which replaced welfare in the 1990s, child support enforcement, and child care)
  • Child Nutrition: $19 billion (includes school lunches, school breakfasts, and other child and adult care food programs)
  • TARP (troubled asset relief program): $16 billion
  • Farm programs: $13 billion
  • Children's Health Insurance Progarm (CHIP): $9 billion
    
    
• Interest on the Debt: $238 billion (interest paid to holders of U.S. securities, about half of which are foreign-owned)
  
  
• Everything Else: $634 billion (often known as "non-defense discretionary" -- Includes law enforcement, veterans health care, homeland security, education, prisons, NASA, disease and epidemic control, highways & bridges, food and drug inspection, disaster relief, airports, health research, housing assistance, and many other functions of government. Following are non-defense discretionary programs funded at over $1 billion in FY 2012.
  
  -- CRS Analysis of Federal R&D Funding (Across Federal Agencies)
  
  

Non-defense Programs/Categories funded at over $1 billion per year

Budget Function (Category of Spending)	Program or Program Categories	FY 2010 (rounded to nearest billion)
International Affairs
	Development & Humanitarian	$32 billion
	Embassies and related costs	$16 billion
	Security Assistance	$6 billion
	Foreign Information/Exchanges	$2 billion
General Science, Space & Technology
	NASA	$18 billion
	NSF: funds basic research	$7 billion
	Dept, of Energy Science Programs	$5 billion
	Homeland Security Science & Tech	$1 billion
Energy
	Fossil, nuclear, renewable research	$3 billion
Natural Resources & Environment
	EPA (clear air, water, toxic wastes)	$10 billion
	Corps of Engineers Water Projects	$5 billion
	Forest Service	$5 billion
	Recreational Resources	$3 billion
	Fish & Wildlife Service	$2 billion
	Bur. of Reclamation (dams, hydroelectric)	$1 billion
	Management of Public Lands	$1 billion
	Conservation Operations	$1 billion
Agriculture
	Farm Income Stabilization	$2 billion
	Research & Education	$2 billion
	Animal and Plant Inspection	$1 billion
Commerce
	Nat'l Institute of Standards & Technology	$1 billion
	Small and Minority Business Assist.	$1 billion
Transportation
	Highways	$27 billion
	Airports and Airways (FAA)	$12 billion
	Marine Safety and Transportation	$8 billion
	Transportation Security Admin.	$5 billion
Community Development & Disaster Relief
	Disaster Relief	$5 billion
	FEMA State and Local Grants	$4 billion
	Community Development	$4 billion
	Indian Programs	$2 billion
	Rural Development	$1 billion
	Disaster Assistance Grants	$1 billion
Legislative, Executive Branches
	Internal Revenue Service	$12 billion
	House, Senate, GAO, Lib. of Congress, GPO	$4 billion
	White House, DC Govt, Other Exec. Branch	$4 billion
Education, Employment & Training, Social Services
	Grants to Schools in High Poverty Areas	$16 billion
	Special Education (children w/disabilities)	$13 billion
	Children, Family & Aging Services	$11 billion
	Training and Employment Services	$8 billion
	Innovation & Improvement, Charter Schools	$5 billion
	Higher Education and Student Aid	$5 billion
	Library of Congress, СРВ, Smithsonian	$4 billion
	Vocational and Adult Education	$2 billion
	Indian Education	$1 billion
	AmeriCorps, Senior Service Corps	$1 billion
	Impact Aid (payments to states/cities)	$1 billion
Health (other an Medicare, Medicaid and CHIP)
	National Institutes of Health	$31 billion
	Centers for Disease Control and Prevention	$6 billion
	Indian Health	$4 billion
	Mental Health, Substance Abuse (SAMHSA)	$3 billion
	Community Health Centers	$2 billion
	Ryan White AIDS Grants	$2 billion
	Food and Drug Inspection	$2 billion
	Food Safety and Inspection Service (USDA)	$1 billion
	Occupational and Mine Safety and Health	$1 billion
Social Security & Medicare (Administrative Costs)
	Social Security Admin.	$6 billion
	Medicare Admin, anti-fraud initiatives	$6 billion
Income Security and Housing
	Rental Housing Assistance (Section 8)	$27 billion
	Public Housing	$7 billion
	WIC: Nutrition for Women, Infants, Children	$7 billion
	LIHEAP: Low Income Home Energy Assistance	$5 billion
	Unemployment Insurance: Admin. Expenses	$4 billion
	Homeless Assistance	$2 billion
	Child Care Block Grant	$2 billion
Veterans Benefits and Services
	Veterans Health Care	$47 billion
	VA Administration	$6 billion
Law Enforcement, Prisons, Administration of Justice
	Border and Transportation Security	$18 billion
	Federal Litigation and Judicial Activities	$11 billion
	Federal Prison System	$8 billion
	Criminal Investigations (FBI, DEA, DHS)	$6 billion
	State and Local Law Enforcement Grants	$2 billion
	Alcohol, Tobacco and Firearms (ATF)	$1 billion
	Secret Service	$1 billion

 

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