The federal budget
Where the money goes
In fiscal year 2026, which ended September 30, 2026, the federal government spent $7.4 trillion and collected $5.4 trillion. It borrowed the difference: $1.99 trillion. Interest on the debt, $1.05 trillion, cost more than national defense, $965 billion.
Source: U.S. Treasury, Monthly Treasury Statement for September 2026, fiscal year to date.
Source: White House Office of Management and Budget, Historical Tables, Table 7.1 (spreadsheet), debt held by the public, end of 2025.
What it pays for
Spending by purpose. Each line is the total for that purpose across every agency.
- Social Security23%$1.67 trillion
- Medicare15%$1.07 trillion
- Interest on the debt14%$1.05 trillion
- Health care other than Medicare, mostly Medicaid14%$1.03 trillion
- National defense13%$965 billion
- Everything else, after money paid back22%$1.61 trillion
Every purpose
Source: U.S. Treasury, Monthly Treasury Statement for September 2026, Table 9, outlays by function.
Voted on each year, or automatic
Most spending is set by permanent laws and needs no yearly vote. Congress votes each year on the rest. How the budget is approved
- Automatic under existing lawSocial Security $1.58 trillion, Medicare $988 billion, Medicaid $668 billion and other programs, after money paid back59%$4.17 trillion
- Voted on each year$894 billion for defense, $982 billion for everything else27%$1.88 trillion
- Interest on the debt14%$970 billion
Source: White House Office of Management and Budget, Historical Tables, Table 8.1 (spreadsheet), fiscal 2025 actual.
Where the money comes from
- Individual income taxes53%$2.85 trillion
- Payroll taxes for Social Security, Medicare and unemployment34%$1.81 trillion
- Corporate income taxes7%$381 billion
- Customs duties (tariffs)3%$173 billion
- Excise taxes (fuel, alcohol, tobacco and others)2%$106 billion
- Everything else2%$85.4 billion
Every source
Customs duties brought in $173 billion in fiscal 2026, compared with $195 billion the year before. Treasury counts each source after refunds, so refunds of tariffs paid earlier lower the total.
Source: U.S. Treasury, Monthly Treasury Statement for September 2026, Table 9, receipts by source.
Federal money in Iowa
Federal awards for fiscal 2026: contracts, grants, loans and direct payments to people, businesses and governments in Iowa. Benefits paid through national systems, federal salaries and some health payments may be counted elsewhere, so this is not every dollar that reaches the state.
Federal awards in Iowa totaled $34.6 billion in fiscal 2026, ranking 33 of 50 states.
By kind
- Direct payments to people, such as Social Security and farm payments63%$21.7 billion
- Grants to state and local governments, schools and others31%$10.9 billion
- Contracts for goods and services6%$1.91 billion
- Everything elseunder 1%$136 million
By the agency that made the award
- Social Security Administration50%$17.4 billion
- Department of Health and Human Services23%$7.88 billion
- Department of Agriculture7%$2.31 billion
- Department of Veterans Affairs5%$1.73 billion
- All other agencies15%$5.26 billion
Source: USAspending.gov, the Treasury's official site for federal award data. Change the state on your delegation page.
Departments and agencies
Spending by the department that pays it, fiscal 2025. The Treasury's total is mostly interest on the debt.
- Department of Health and Human Services27%$1.88 trillion
- Social Security Administration23%$1.65 trillion
- Department of the Treasury21%$1.46 trillion
- Department of Defense: Military Programs12%$868 billion
- Department of Veterans Affairs5%$377 billion
- All other departments, after money paid back11%$776 billion
Every department
Source: White House Office of Management and Budget, Historical Tables, Table 4.1 (spreadsheet), 2025 column; Social Security's on- and off-budget lines added together.
Spending and taxes over time
As a share of the whole economy, so years can be compared fairly.
Source: White House Office of Management and Budget, Historical Tables, Table 1.2 (spreadsheet).
What the President proposes for 2027
These are the President's estimates from the budget request. They are a proposal, not law: Congress decides.
| Department | 2025 actual | 2027 proposed | Change |
|---|---|---|---|
| Department of Defense: Military Programs | $868 billion | $1.15 trillion | +$279 billion (+32%) |
| Department of Health and Human Services | $1.88 trillion | $2.15 trillion | +$269 billion (+14%) |
| Social Security Administration | $1.65 trillion | $1.84 trillion | +$196 billion (+12%) |
| Department of Veterans Affairs | $377 billion | $475 billion | +$98.5 billion (+26%) |
| Department of Education | $34.7 billion | $119 billion | +$84.6 billion (+244%) |
| Department of the Treasury | $1.46 trillion | $1.53 trillion | +$71.4 billion (+5%) |
| Department of Homeland Security | $115 billion | $146 billion | +$31 billion (+27%) |
| Department of Housing and Urban Development | $50.5 billion | $75.8 billion | +$25.2 billion (+50%) |
Source: White House Office of Management and Budget, Historical Tables, Table 3.1 (spreadsheet), 2027 estimate column.
About these numbers
- Actual totals for the latest full year come from the Treasury's Monthly Treasury Statement; we check for a new one each day.
- Details by purpose, kind and agency for earlier years, and the President's estimates, come from the Office of Management and Budget's Historical Tables, published with the fiscal 2027 budget.
- Money for Iowa comes from USAspending.gov, which reports federal awards by where they are made.
- A fiscal year runs from October 1 to September 30. Fiscal 2026 ended September 30, 2026.