© 2025 WGCU News
PBS and NPR for Southwest Florida
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

50 Years Of Government Spending (And The New Budget Deal), In 3 Graphs

Over the past 50 years, both the way the federal government spends money and what the government spends money on has changed a lot.

It used to be that most spending was what wonks call "discretionary spending." This is money that has to be approved every year by Congress.

Today, most government spending is what wonks call "mandatory spending." This is money that is spent according to formulas that exist in the law. To change mandatory spending, Congress has to change the law.

Fifty years ago, defense spending accounted for about half of all government spending. Today, defense spending accounts for less than a quarter of all government spending. (In the graph, by the way, "Non-defense" refers to non-defense discretionary spending, which includes education, transportation and lots of other government programs.)

Medicare didn't exist 50 years ago; last year, it accounted for more than 10 percent of federal spending.

The budget deal the House passed last week focuses on discretionary spending, not mandatory spending. In particular, it undoes some of the spending cuts that Congress passed last year as part of the sequester. Those cuts included both defense and non-defense discretionary spending.

In other words, both defense spending and non-defense spending will be higher than they would have been had the cuts remained in place. Next year, for example, defense spending will be 4.5 percent higher than it would have been with the cuts; non-defense discretionary spending will be 4.7 percent higher than it would have been.

The Senate is expected to vote on the bill soon.

Copyright 2023 NPR. To see more, visit https://www.npr.org.

Jacob Goldstein is an NPR correspondent and co-host of the Planet Money podcast. He is the author of the book Money: The True Story of a Made-Up Thing.
Trusted by over 30,000 local subscribers

Local News, Right Sized for Your Morning

Quick briefs when you are busy, deeper explainers when it matters, delivered early morning and curated by WGCU editors.

  • Environment
  • Local politics
  • Health
  • And more

Free and local. No spam. Unsubscribe anytime.

More from WGCU
  • The School Board for the School District of Lee County has approved a new contract with the Teachers Association of Lee County.In a joint release made Tuesday night, the district and the teachers union said the agreement reflects "our shared commitment to valuing educators, supporting students, and maintaining one of the most competitive compensation packages in the state of Florida."
  • Red tide season typically begins in early fall and can persist for months. While the Southwest and central-southwest remain free of harmful algal blooms, the Red Tide is causing problems in parts of the Panhandle.
  • President Donald Trump caused some confusion earlier Tuesday when he appeared to threaten SNAP benefits unless Democrats voted to reopen the government — despite court orders mandating that the administration keep the nation's largest food program running. Press secretary Karoline Levitt said the administration continues to pay out SNAP funding using contingency funding, which is what two separate judges ordered on Monday. The U.S. Department of Agriculture had planned to freeze SNAP payments starting Nov. 1 because of a lapse in funding during the government shutdown. The government says the emergency fund it will use has enough to cover about half the normal benefits.