Entitlement spending totaled 55% of federal expenditures in fiscal year 2023, down from 66% in 2021 at the height of the Coronavirus pandemic. Entitlement programs include welfare programs, Social Security, Medicare, Medicaid, Unemployment, and Coronavirus relief programs such as individual and business support payments (See Entitlement Programs Page).
Federal Spending In Fiscal Years 2020 through 2023, In Billions
The table above shows total federal spending in billions of dollars for the past five fiscal years (“FY”). The federal government’s fiscal year ends on September 30 of each year. The chart includes entitlement spending and its share of total federal spending. Overall spending at the federal level increased from $4.4 trillion in FY 2019 to $6.8 trillion in FY 2021, an increase of over 50%. The cause of the increase was generally Coronavirus relief activities, as shown above, as “economic support” and included in welfare increases of $173 billion or almost 50% over the two years. This increase was principally from expanding Child Care Programs, Housing Assistance Programs, and the Child Tax Credit. Unemployment costs increased by $366 billion also due to Coronavirus relief. Total federal spending totaled $6.1 trillion in 2023, a drop of $688 billion from the height of spending in 2021. Still, expenditures in 2023 were 38% higher 2019, prior to the Pandemic .
Deficit Spending
The increase of over $4.5 trillion in spending for 2020 and 2021 compared to 2019 is an unprecedented increase in federal outlays for emergencies other than war funding. The deficits for the years 2020 and 2021 were $3.1 and $2.8 trillion, so the entire Coronavirus relief effort was financed by debt. The deficit in FY 2022 totaled $1.4 trillion and $1.6 trillion in 2023. Overall debt at the end of fiscal year 2023 totaled $32.5 trillion up 28% over the four year period.
Here is the following information:
- The definition of an entitlement program.
- The definition of means-testing and contributory programs.
- The distinction between one-time legislation and ongoing programs.
Here is the following information:
- The definition of welfare programs.
- The breakout of spending by individual welfare programs that make up the welfare portion of entitlement spending.
- Information on the various welfare programs
Entitlement Spending Over the Past Ten Years
The graph to the left shows total entitlement spending for the past ten years. As described above, Coronavirus relief costs caused the expense growth in 2020 and 2021.
The graph also includes entitlement spending per capita, which is calculated by dividing total entitlement costs by the country’s population. Per Capita spending increased from $6,542 in 2013 to $13,667 in 2021, an over 100% increase. The drop in 2022 and 2023 is due to the reduction in Coronavirus costs. Still, entitlement spending in 2023 totaled $10,129 per American, up $3,387 or 55% over ten years.
Data from USGovernmentSpending.com [Internet]. Retrieved April 8, 2022. Available here. See also Welfare Budget Page.