The Big Picture
After the “Big Four” (Social Security, healthcare, interest, and defense), the remaining federal spending is:
~25% of the budget (~$1.7–$1.8 trillion total)
This category includes many programs, but no single one dominates. For context, the current annual deficit (~$1.7–$1.8 trillion) is roughly equal to all of these remaining federal programs combined.
The Main Buckets
Income Security (Safety Net Programs)
- ~$650 billion (~9%)
- Includes: unemployment insurance, food assistance (SNAP), and disability and housing support
These programs expand during downturns but remain significant even in stable times.
Veterans Benefits & Services
- ~$325 billion (~5%)
- Healthcare, disability compensation, pensions
Education, Transportation, Infrastructure
- ~$500 billion (~7%)
- Schools, student aid, highways, transit, infrastructure
This category is highly visible, but smaller than many assume.
Government Operations & Other
- ~$300 billion (~4%)
- Includes:
- Federal agencies and administration (including Department of Homeland Security)
- Scientific research (e.g., NIH, NASA)
- Foreign aid
- Courts, law enforcement
This represents everything else combined.
Key Insight
This part of the budget includes many programs people interact with directly, is often the focus of political debate, and feels large because it is visible and diverse. However, no single program here comes close to the scale of the Big Four, and even eliminating entire categories would not close the deficit.
Based on what we see in the news and what many politicians talk about, this is where many people assume our spending problem is, but it isn’t. Most of the federal budget isn’t made up of small, discretionary programs. It’s concentrated in a few large commitments (Social Security, healthcare programs, and defense) and the growing cost of past borrowing. The programs described in this article matter and their costs are significant but they are not the primary drivers of long-term deficits. Changes here can chip away at government spending and should be examined, but they cannot solve the structural gap alone.
The Bottom Line
The remaining quarter of the federal budget is spread across many smaller categories that are important but not dominant. Focusing only on these areas misses the core reality: the budget is driven by a few very large commitments, not many small ones. Our elected officials should examine every dollar the government spends, but they should be honest about where the real costs are, as well as the trade-offs required for our government to be fiscally sound.