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What is the Federal Grant Spending?

In the Public Budget Database each spending item is tagged as Grant or Nongrant. This analysis shows history of federal grant spending as distributed across various federal functions. The biggest grant item is Medicaid grants to states.

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Federal Grant Analysis  

Recent US Federal Grant Spending

Recent US Federal Grant Spending

Chart S.91f: Recent US Federal Grant Spending

Federal Grant spending increased steadily in the 2010s with a bump during the Great Recession. In the COVID years grant spending jumped from $720 billion in 2020 to $1,245 billion in 2022.

At the end of FY2024 federal grant spending was $1,108 billion, of which $567 billion was for Medicaid.


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Recent US Federal Grants as Pct GDP

Chart S.92f: Recent US Federal Grants as Pct GDP

Viewed as percent of GDP federal grant spending was steady at about 3 percent GDP during the 2010s with a surge to 4 percent GDP during the Great Recession. In the COVID years federal grant spending exploded to 4.7 percent GDP in 2022.

At the end of FY2024 the federal grant spending was 3.8 percent of GDP, of which 1.9 percent of GDP was for Medicaid.

Major Federal Grant Spending Categories

Major Federal Grant Spending Categories

Chart S.93f: Major Federal Grant Spending Categories

The largest federal grant spending category is Medicaid grants to the states, amounting to over one percent of GDP in 2007. The next highest is welfare, at about 0.5 percent of GDP in 2007. Then education, transportation, and other categories. During the COVID years, economic assistance, reaching almost one percent of GDP in 2022, was provided with General Government grants.

The trend in federal grants is upward, as a percent of GDP, with Medicaid grants reaching 2 percent of GDP in 2022.

US Federal Grant Spending Since 1962

Federal Grant Spending since 1962

Chart S.94f: Federal Grant Spending since 1962

Federal grant spending began the 1960s at 1.3 percent GDP, but then surged in the 1970s to over 3 percent GDP. In the 1980s grant spending declined to 2 percent GDP, but in the decades since has steadily increased, hitting 3 percent GDP in 2003, 3.9 percent GDP in 2011, and 4.7 percent GDP during COVID in 2022.

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Debt Data Sources

Debt data is from official government sources.

Gross Domestic Product data comes from US Bureau of Economic Analysis and measuringworth.com.

Detailed table of debt data sources here.

Federal debt data begins in 1792.

State and local debt data begins in 1820.

State and local debt data for individual states begins in 1957.

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Gross Federal Debt

Debt Now:  $37,852,655,815,448.95
Debt 2/2020:$23,409,959,150,243.63

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Data Sources for 2020_2029:

Sources for 2020:

GDP, GO: GDP, GO Sources
Federal: Fed. Budget: Hist. Tables 3.2, 5.1, 7.1
State and Local: State and Local Gov. Finances
'Guesstimated' by projecting the latest change in reported spending forward to future years

Sources for 2029:

GDP, GO: GDP, GO Sources
Federal: Fed. Budget: Hist. Tables 3.2, 5.1, 7.1
State and Local: State and Local Gov. Finances
'Guesstimated' by projecting the latest change in reported spending forward to future years

> data sources for other years
> data update schedule.

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State and Local Finances for 2023

On September 11, 2025 we updated the state and local spending and revenue for FY 2023 using the new Census Bureau State and Local Government Finances summaries for FY 2023 released on July 31, 2025.  (See also Annual Survey of State and Local Government Finances). The release includes state and local spending for the United States as a whole and the 50 individual states and the District of Columbia.

State and local spending and revenue for FY2023 are now actual historical spending as reported by the Census Bureau. In addition, the Census Bureau published updated tables for 2021 and 2022.

We have updated the "guesstimated" state and local finances for FY2024-30 as indicated in our "guesstimate" blog entries.

We have also updated data for individual local government units with data for 2023. 

Beginning in 2022 the Census Bureau has changed the value for Line 56 Direct Expenditure and Line 7 General Revenue from own sources, as follows:

We have decided to end our publication of non-insurance trust cash and security holdings.

However, to keep the time series at usgovernmentspending.com consistent, we have decided to add insurance-trust values back into Line 56 and Line 7 values. 

State Spending for 2023
In March 2025 the US Census Bureau released data on state finances for FY 2023 here and  ...

Agency Debt Update for 2024
On June 24, 2025, usgovernmentspending.com updated its data for agency debt from the Federal Reserve Board database. Data is now available for the period 1945-2024. You can see our Agency Debt page ...

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