Introduction

This report presents figures showing trends in discretionary budget authority as a percentage of gross domestic product (GDP) by subfunction within each of 17 budget function categories, using data from President Joseph R. Biden's FY2025 budget submission.¹ This report provides a graphical overview of historical trends in discretionary budget authority from FY1977 through FY2023, estimates for FY2024 spending, and the levels consistent with the President's proposals for FY2024 through FY2029.² Spending in this report is shown as a percentage of GDP to control for the effects of inflation, population growth, and growth in per capita income.³ Past spending trends may prove useful in framing policy discussions as the 118^th Congress prepares to confront a new set of challenges while it considers how to fund the federal budget for the remainder of FY2024 and starts deliberations on funding for FY2025.

Budget Concepts and Discretionary Spending

Appropriations acts provide and control discretionary spending,⁴ which funds many of the activities commonly associated with federal government functions, such as running executive branch agencies, congressional offices and agencies, and international operations of the government.⁵ Mandatory spending, which is provided by other kinds of acts, supports the much larger expenditures on various program benefits. For some program areas, such as highway and mass transportation funding, the division of spending into discretionary and mandatory categories is more complex.

Discretionary spending in this report is measured in terms of budget authority (BA). An agency head with BA can obligate the federal government to make payments, subject to congressional restrictions, for contractors, employees, or grantees to carry out the goals set in legislation. Outlays occur when the U.S. Treasury disburses funds to honor those obligations. Thus, outlays follow BA with a lag. Outlays for personnel costs mostly occur in the same year that BA is provided, but for large and complex projects, outlays may be spread over several years. Nearly all BA eventually results in outlays. In some cases, BA expires without being used. For instance, an agency might have difficulty in hiring personnel with the right qualifications or in finding a contractor with appropriate capabilities or a contract might cost less than anticipated. In a few cases, major federal initiatives were later curtailed or cancelled, resulting in the rescission of BA. For instance, most funding for the Carter Administration's synthetic fuels program and the Obama Administration's plans for high-speed rail did not result in outlays.

In some cases, changes in funding levels recorded in historical budget data reflect changes in budgetary concepts or the budgetary treatment of some types of spending. For example, the Federal Credit Reform Act of 1990 (P.L. 101-508) changed the budgetary treatment of federal loan and other credit programs starting in FY1992.

Budget Policy and Discretionary Spending

Discussions about the appropriate levels of spending for various policy objectives of the federal government always have played an important role in congressional deliberations over funding measures. For example, concerns about the trajectory of fiscal policy after the financial crisis of 2007-2009 led to the reestablishment of enforceable statutory caps on discretionary funding in the 2011 Budget Control Act (P.L. 112-25) and again with enactment of the Fiscal Responsibility Act (FRA; P.L. 118-5) in 2023.

More recently, the scale of fiscal responses to the COVID-19 pandemic as well as post-pandemic funding for infrastructure, industrial subsidies, and climate change initiatives prompted renewed discussions over federal fiscal policy. Rising debt levels, a post-pandemic quickening of inflation, and persistent deficits have also heightened fiscal policy concerns.

Some recent authorizing measures contained substantial discretionary appropriations. The CARES Act of 2020 (§23008; P.L. 116-136), enacted in March 2020 shortly after COVID-19 was declared a pandemic, appropriated funds for various federal initiatives. The Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58) provided $163 billion in discretionary funding for FY2022 and an estimated $283 billion in funding for the following decade. Most of those funds support transportation programs, pollution control and abatement, broadband deployment, and energy programs.⁶

The growth of social insurance and health program spending, mostly funded through mandatory spending, has also been an issue of concern because those programs comprise the majority of federal outlays.⁷

Funding for FY2023

Funding for FY2023 was first provided by a continuing resolution (P.L. 117-180) that included supplemental appropriations to support Ukraine's defense against the Russian invasion. After two one-week continuing resolutions (P.L. 117-229 and P.L. 117-264) were enacted in December 2022, a final appropriations measure (P.L. 117-328) for FY2023 was enacted on December 29, 2022. According to Congressional Budget Office (CBO) estimates, the act provided $1,715 billion in discretionary BA.⁸

The enactment of final FY2023 appropriations at the end of December 2022, rather than before the start of the fiscal year on October 1, 2022, hindered OMB's ability to estimate current budget year amounts in the Administration's FY2024 budget submission.⁹

Funding in FY2024 and FY2025

In June 2023, the Fiscal Responsibility Act (FRA; P.L. 118-5) suspended the federal debt limit and set new statutory caps on discretionary spending for FY2024 and FY2025.¹⁰ CBO estimated that those caps and other provisions would reduce discretionary spending over the coming decade by $1.3 trillion, relative to baseline spending levels. The caps are backed by the prospect of sequestration—that is, across-the-board cuts in nonexempt accounts—administered by OMB.¹¹ In the past, Congress has almost always passed measures that comply with budgetary limits, avoiding an OMB-administered sequester.

A series of continuing resolutions have provided funding for the federal government's operations. At this writing, final annual appropriations for FY2025 have not been enacted.

The Biden Administration submitted its budget plans for FY2025 on March 11, 2024.¹² Administration budget data were used to compute this report's figures. Administration budgets typically use information available in late November to compile the following year's budget submission.

Overview of Recent Discretionary Spending

Federal fiscal policy in the past two decades has been shaped by two severe shocks, as noted above and discussed in more detail below.

First, the 2007-2009 financial crisis and the ensuing Great Recession was the most serious economic downturn since the Great Depression of the 1930s.¹³ Government deficits and debt typically rise after serious financial crises and economic downturns for two main reasons. First, tax revenues typically drop during economic downturns. Second, as recession reduces incomes for many households, spending increases due to the effect of "automatic stabilizers"—that is, programs that provide benefits linked to income levels or unemployment. In addition, Congress passed the American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5), which combined a package of increased federal funding for education, energy, and other areas; greater support for state and local governments; and tax reductions.

Second, the COVID-19 pandemic, the most serious global health emergency in the past century, had profound effects on economic activity, health systems, and finances of households and governments.¹⁴

The direct and indirect effects of the 2007-2009 financial crisis and the COVID-19 pandemic both resulted in large increases in federal deficit spending. While federal deficit spending supports economic activity and household incomes, the sharp increases in federal debt levels raised concerns about the sustainability of public finances.

The Budget Control Act of 2011

Fiscal policy became a central concern of Congress in the wake of the 2007-2009 Great Recession. In early 2011, prompted by those concerns, some in Congress sought to constrain discretionary spending in the final FY2011 appropriations measure.¹⁵ In August 2011, negotiations over fiscal policy and the debt limit led to the reimposition of spending caps and associated budget enforcement mechanisms that had lapsed after FY2001 through the enactment of the Budget Control Act of 2011 (BCA; P.L. 112-25).

The BCA set statutory caps on discretionary spending, similar to those that had lapsed in 2002, and set up budget enforcement mechanisms designed to achieve $2.1 trillion in savings over the period FY2012-FY2021.¹⁶ An initial set of discretionary caps was estimated to save about $900 billion over 10 years. A bipartisan Joint Select Committee on Deficit Reduction, often known as the "Super Committee," was tasked with developing a plan to reduce deficits by $1.2 trillion or more.

When that committee reported no plan by a November 2011 deadline, backup budget enforcement measures were triggered, including a January 2013 sequester (a cancellation of budgetary resources by OMB), and a revised set of discretionary caps on funding for defense (defined as the national defense budget function 050) and nondefense programs (all other) for FY2013-FY2021.¹⁷ Those revised caps were to be lowered in each year by an amount calculated by the Office of Management and Budget (OMB) according to a formula designed to achieve a prorated share of the $1.2 trillion deficit reduction that a Joint Select Committee plan did not achieve. An annual sequester of nonexempt mandatory spending accounts also contributes to those savings.

The spending trajectory implied by those backup enforcement measures implied discretionary base defense spending would have reverted to a level slightly above its FY2007 level in real dollar terms (i.e., adjusting for inflation but not for growth in population or the economy), while nondefense discretionary spending would have reverted to a level near its FY2003 level.¹⁸ Discretionary spending as a share of GDP, had unmodified BCA caps remained in place, would have declined to levels well below those seen in recent decades. CBO baseline projections suggested that discretionary spending would have accounted for 5.3% of GDP in FY2026, two percentage points below its level in FY2007 (7.3%), just before the start of the Great Recession.¹⁹

BCA caps were adjusted to accommodate certain types of spending, such as war spending (designated as "overseas contingency operations"), emergency appropriations, disaster relief, and program integrity initiatives.²⁰ In particular, war-designated funding has been seen as a "relief valve" that has taken budgetary pressure off priority military and international programs.²¹ Some Members of Congress have argued that war spending cap adjustments weakened fiscal discipline.²²

Congress Modified BCA Caps to Mitigate Fiscal Stringency

The stringency of BCA discretionary spending caps and backup enforcement measures prompted Congress and the President to adjust those limits several times to avoid dislocations of federal operations.²³ Some journalists and others have referred to sequestration as a reversion to tighter caps on spending after a lapse of a Bipartisan Budget Act provision allowing higher levels of discretionary spending—something unrelated to the formal definition of sequestration.

The American Taxpayer Relief Act of 2012 (ATRA; P.L. 112-240) delayed the slated FY2013 sequester and reduced its size from $109 billion to $85 billion. ATRA, which also extended certain tax reductions, addressed concerns that the expiration of certain tax cuts and imposition of spending cuts could hinder economic recovery from the Great Recession, avoiding what had been called a "fiscal cliff."²⁴

The Bipartisan Budget Act of 2013 (BBA 2013; H.J.Res. 59; P.L. 113-67), enacted in December 2013 and popularly known as the Murray-Ryan budget agreement, set a pattern for adjusting BCA caps. The BBA 2013 raised BCA FY2014 limits for defense and nondefense by $22.4 billion each and raised FY2015 limits by $9.3 billion each. The Bipartisan Budget Act of 2015 (BBA 2015; P.L. 114-74) raised the FY2016 cap levels on both categories by $25 billion and the FY2017 cap levels by $15 billion.

The Bipartisan Budget Act of 2018 (BBA 2018; H.R. 1892, P.L. 115-123), enacted February 9, 2018, raised the defense cap by about $80 billion for FY2018 and $85 billion for FY2019 and the nondefense cap by about $63 billion for FY2018 and $67 billion for FY2019.²⁵ BBA 2018 also contained several changes in federal social programs and again suspended the debt limit.²⁶

The Bipartisan Budget Act of 2019 (BBA 2019; H.R. 3877, P.L. 116-37), enacted on August 2, 2019, set discretionary cap levels for FY2020 and FY2021, allowing for higher spending in both the defense and nondefense categories. At the end of FY2021, BCA caps on discretionary spending (BA) expired, although BCA sequestration of nonexempt mandatory spending has been extended.²⁷ Discretionary caps, as noted above, were reinstated for FY2024 and FY2025 by the Fiscal Responsibility Act (P.L. 118-5).

Coronavirus Pandemic and Federal Responses in 2020 and 2021

The COVID-19 pandemic confronted the federal government, like governments around the world, with extraordinary fiscal challenges.²⁸ In part, deficits were pushed upward through "automatic stabilizers," such as expanded income support payments and diminished tax receipts as household incomes and business profits fell.²⁹ The designation of COVID-19 as a pandemic in mid-March 2020 prompted fiscal policy responses in 2020 and 2021 that increased federal spending and deficits, as percentage of GDP, to levels not seen since World War II.³⁰ Most of the federal fiscal response was provided through mandatory spending, and to a lesser extent in revenue reductions.

The CARES Act (P.L. 116-136), enacted in late March 2020, provided an estimated $326 billion in discretionary funding, while providing $988 billion in mandatory spending and $408 billion in revenue reductions. The Paycheck Protection Program and Health Care Enhancement Act (P.L. 116-139) provided an additional $162 billion in discretionary funding as well as $321 billion in mandatory spending.³¹

The final appropriations package for FY2021, enacted in late December 2020, included an estimated $185 billion in discretionary spending, $677 billion in mandatory spending, and $5 billion in revenue decreases. The American Rescue Plan Act (P.L. 117-2) provided $1,803 billion in mandatory funding and $53 billion in revenue reductions, but no discretionary funding.³²

Caps on Discretionary Spending Reinstated for FY2024 and FY2025

In June 2023, the Fiscal Responsibility Act (FRA; P.L. 118-5) suspended the federal debt limit and reestablished statutory caps on discretionary spending for FY2024 and FY2025. Separate caps apply to the defense and nondefense categories.

Federal Budget Data and Concepts

Figures in this report are based on the Office of Management and Budget (OMB) Public Budget Database accompanying the FY2025 budget release.³³ Table 5.1 in the Historical Tables volume of the FY2025 budget reports budget authority by function and subfunction, but does not break down spending into discretionary and mandatory subcomponents.³⁴

OMB Budget Data

OMB's public budget data generally do not reflect budgetary categories used in the congressional budget process such as emergency-designated funding, the appropriations subcommittee responsible for an account, or distinctions between war and base funding. OMB maintains more detailed budget data for its internal work. OMB is the official source for historical budget data. CBO estimates, however, are generally more relevant for congressional budget enforcement.

Budget data in OMB documents may differ from other budget data for various reasons, although differences in historical data are typically small. For example, appropriations budget documents often reflect scorekeeping adjustments. Budget data issued at a later date may include revisions. In some cases, detailed appropriations data may differ from OMB data, which sometimes do not reflect certain relatively small zero-balance transfers among funds. Differences may also reflect technical differences or different interpretations of federal budget concepts.

Negative Budget Authority

Within the federal budget concepts, certain inflows, such as offsetting receipts, offsetting collections, some user fees, and "profits" from federal loan programs, are treated as negative budget authority.³⁵

Provisions in appropriations acts that affect mandatory spending programs, known as CHIMPs (changes in mandatory programs) can be counted as negative discretionary spending according to federal budgetary scorekeeping guidelines. For example, a CHIMP affecting the State Children's Health Insurance Program (CHIP) explains a dip in subfunction 551 (health care services) shown in Figure 9 for FY2025.³⁶

Scorekeeping adjustments, such as CHIMPs, lead to differences between actual discretionary budget authority totals and limits set by budget enforcement mechanisms, such as §302 allocations or BCA discretionary caps.³⁷ Scored totals of budget authority—that is, totals that include scorekeeping adjustments and which are used to check conformity to BCA spending limits and other budget enforcement measures—typically diverge from totals that do not include those adjustments.

Federal Credit Programs

Disbursements for federal loan and loan guarantee programs do not appear directly in federal spending data. The federal government has used a form of accrual accounting for loan and loan guarantee programs since passage of the Federal Credit Reform Act (FCRA; Title V of the Omnibus Budget Reconciliation Act of 1990; P.L. 101-508) as well as for certain federal retirement programs.³⁸ OMB calculates net subsidy rates according to FCRA rules for loan and loan guarantee programs. The net subsidy cost is then reflected in federal spending data. In general, FCRA adjustments affect mandatory spending more than discretionary spending because the largest sources of federal credit are mandatory programs.³⁹

Comparisons of estimates of federal credit program costs before and after FY1991 should be treated with caution because FCRA changed the budgetary treatment of federal credit programs. For instance, the budgetary costs of loan guarantee programs before FCRA rules came into effect were typically understated because they required no upfront federal disbursements, unlike loan programs. Conversely, the budgetary costs of federal loan programs, which required upfront federal disbursements, did not reflect future repayments. FCRA changes in budgetary treatment of credit programs made loan and loan guarantee programs more comparable. Loan or loan guarantee program cost estimates calculated before FCRA implementation are unlikely to be comparable to estimates calculated afterward.

FCRA calculations sometimes yield negative net subsidy levels, implying that the federal government appears to make a profit on those loans.⁴⁰ FCRA subsidy calculations, however, omit risk adjustments.⁴¹ The true economic cost of federal credit guarantees can be substantially underestimated when risk adjustments are omitted.⁴²

Background on Functional Categories

Functional categories are a tool to compare federal funding for activities within broad policy areas across multiple federal agencies.⁴³ Various federal agencies may have closely related or overlapping responsibilities. Functional categories therefore provide a useful view of federal activities supporting specific national purposes.

Superfunction Categories

Superfunction categories, which provide a higher-level division of federal activities, are

• National Defense,
• Human Resources,
• Physical Resources, and
• Other Functions.

Figure 1 shows trends in discretionary funding for those superfunctions since FY1977. Budget function categories, grouped by superfunctions, are shown in Table 1. Net Interest, Allowances, and Undistributed Offsetting Receipts could also be considered as separate categories. Superfunction categories for National Defense, Net Interest, Allowances, and Undistributed Offsetting Receipts coincide with function categories. Trends in net interest are excluded, as federal interest expenditures have been automatically appropriated since 1847.

Figure 1. Discretionary Funding by Budget Superfunction, FY1977-FY2029

Source: CRS, based on OMB data from the FY2025 budget submission. Notes: FY2024 levels are estimated. FY2024-FY2029 levels reflect Administration proposals and projections. See OMB budget documents for further caveats.

Allowances, which contain items reflecting technical budget adjustments, and undistributed offsetting receipts are also excluded. Allowances for FY2025 include pandemic fraud prevention and enforcement, allowances for discretionary programs (nondefense), and proposals for spectrum relocation.

In this report, the International Affairs function, which OMB includes in the Other Functions superfunction, is listed after National Defense because similar influences affect both.

Across the broad superfunction categories, discretionary spending is projected to decline as a share of the economy, measured by gross domestic product (GDP), as shown in Figure 1. After a buildup in the early 1980s, National Defense funding fell, especially after the collapse of the Soviet Union and its allied Warsaw Pact. National Defense funding then rose after the attacks of September 11, 2001, and the wars in Afghanistan and Iraq, but has been falling as a share of GDP since FY2010. Human Resources funding as a share of GDP fell sharply in the late 1970s and early 1980s, but rose significantly during the Great Recession and the COVID-19 pandemic. Funding for Physical Resources also rose during the Great Recession and the COVID-19 pandemic, as well as after major disasters. Funding for Other Functions—comprising Agriculture; Administration of Justice; General Science, Space, and Technology; and General Government—has been falling as a share of GDP since FY2010.

Subfunction Categories

Subfunction categories provide a finer division of funding levels within narrower policy areas.⁴⁴ Budget functions generally play no role in budget enforcement, although budget legislation mandates that budget resolutions list preferred spending levels by budget function, thus highlighting broad fiscal priorities.⁴⁵ Caps on discretionary spending set by BCA and FRA, as noted above, define the "revised security category" as "discretionary appropriations in budget function 050."⁴⁶

Historical Spending Trends

Federal spending trends in functional areas are affected by changing assessments of national priorities, evolving international challenges, and economic conditions, as well as changing social characteristics and demographics of the U.S. population. Some of the trends and events that have had dramatic effects on federal spending are outlined below. Other CRS products provide background on more specific policy areas. The discussion of budgetary trends is broken up into three broad categories: defense and international affairs, domestic social programs, and other federal programs.

Spending in the following figures, as noted above, is shown as a percentage of GDP, which controls for the effects of inflation, population growth, and real income growth. A flat line on such graphs indicates that spending in that category is increasing at the same rate as overall economic growth.

Defense and International Affairs

The National Defense (050) and International Affairs (150) budget functions have been the categories most affected by larger changes in the geopolitical role of the United States.

Cold War, Peace Dividend, and the Global War on Terror

The allocation of discretionary spending between defense and nondefense programs is one reflection of changing federal priorities over time. Figure 2 shows defense and nondefense discretionary funding as a percentage of GDP. Figure 3 shows defense spending by major title, including Military Personnel (Mil Pers), Procurement, Operations and Maintenance (O&M), and Research, Development, Test, and Evaluation (RTD&E).⁴⁷

Figure 2. Discretionary Defense and Nondefense Spending Budget authority as a percentage of GDP, FY1977-FY2029

Source: CRS, based on OMB data from the FY2025 budget submission. Notes: Defense is defined as funding for the National Defense (050) budget function; nondefense is the remainder. FY1976-FY2023 are historical data; FY2024 is estimated; FY2024-FY2029 reflect the President's FY2018 budget proposals. The spikes in nondefense funding in FY2009 and FY2020 reflect enactment of the Recovery Act (ARRA) and legislative responses to the COVID-19 pandemic, which are discussed elsewhere.

Relations between the United States and its allies on one hand, and the Union of Soviet Socialist Republics (USSR) and its allies on the other were the dominant security concern in the half century following the Second World War. In the early 1970s, U.S. involvement in the Vietnam War wound down, while the United States and the USSR moved toward detente, permitting a thaw in Cold War relations between the two superpowers and a reduction in defense spending relative to the size of the economy.⁴⁸

Figure 3. Defense Discretionary BA by Major Title, FY1977-FY2029

Source: CRS, based on OMB data from the FY2025 budget submission. Notes: The five titles with the highest funding levels are shown.

In 1979, during the Jimmy Carter Administration, military spending increased sharply following intervention by the USSR in Afghanistan and the Iranian hostage crisis.⁴⁹ The Ronald W. Reagan Administration increased defense spending further, with procurement costs rising more sharply than other categories.⁵⁰

Defense spending continued to increase until 1986, as concern shifted to domestic priorities, the desire to reduce large budget deficits, and concerns about inflated procurement costs.⁵¹ The collapse in 1989 of most of the Warsaw Pact governments in Central and Eastern Europe and the 1990-1991 disintegration of the Soviet Union was followed by a reduction in federal defense spending, allowing a "peace dividend" that relaxed fiscal pressures.⁵² O&M costs, however, fell more slowly after the mid-1980s than other costs (as seen in Figure 3) and rose more quickly after 2000.

The attacks of September 11, 2001, were followed by sharp increases in homeland security spending. Defense spending also increased significantly with the start of the Afghanistan war in October 2001 and the Iraq war in March 2003.⁵³ Rising levels of violence and instability in Iraq in 2006 led President George W. Bush to send an additional "surge" of troops.⁵⁴ In 2008, the U.S. and Afghan governments negotiated a Status of Forces Agreement (SOFA) that set a December 2011 deadline for the withdrawal of most U.S. combat troops.⁵⁵ A smaller number of U.S. troops returned in 2014 to combat the Islamic State of Iraq and Syria (ISIS).⁵⁶

President Barack H. Obama announced that additional troops would be sent to Afghanistan to prevent a collapse of its government. In 2013 and 2014, President Obama stated that most U.S. troops would be withdrawn from Afghanistan by the end of 2014.⁵⁷ In November 2014, however, President Obama announced an extension of operations in Afghanistan.⁵⁸ In February 2020, the Trump Administration signed an agreement with the Taliban that set a May 2021 deadline for the withdrawal of U.S. military forces.⁵⁹ The collapse of Afghan forces in August 2021 forced the withdrawal of remaining U.S. personnel.⁶⁰

The invasion of Ukraine's Crimean peninsula and eastern portions of Ukraine in March 2014 marked a turning point in U.S.-Russian relations, although those events had no material effect on defense spending.⁶¹ The full-scale Russian invasion of Ukraine in February 2022, however, prompted a more robust response. By the end of December 2023, the United States had provided at least $47 billion in security aid since the initial 2014 Russian invasion of Ukraine.⁶² In October 2023, the Biden Administration requested $58 billion in supplemental appropriations to support Ukraine and Israel, which appears as a FY2024 uptick for the Defense-Military category in Figure 3.⁶³ In February 2024, the Senate agreed to a related measure (S.Amdt. 1388 to H.R. 815).⁶⁴

Potential security and diplomatic challenges posed by the Peoples' Republic of China (PRC) have emerged as a leading strategic concern.⁶⁵ Other strategic priorities include broader challenges such as climate change and terrorism, as well as shaping international rules that address potential policy disputes over trade and technology.⁶⁶

Defense Funding Outside of the Department of Defense

Figure 4 shows subfunctions within the National Defense (050) budget function. The Department of Defense (DOD)-Military (051) subfunction accounts for over 95% of that funding. Almost all of the Atomic Energy Defense Activities (053) subfunction supports operations within the U.S. Department of Energy (DOE). About two-thirds of that funding supports the National Nuclear Security Administration (NNSA) and the remainder funds environmental clean-up of weapons production and research sites, along with other related activities. Much smaller amounts support the Defense Nuclear Facilities Safety Board and site remediation activities of the U.S. Army Corps of Engineers.

The Defense-Related Activities (54) subfunction comprises a variety of activities outside of DOD. In recent years, funding for counterterrorism activities within the Federal Bureau of Investigation (FBI) has accounted for almost two-thirds of all funding within this subfunction and about half of the FBI's total discretionary funding.

Figure 4. National Defense (050) Subfunctions Discretionary budget authority as a percentage of GDP, FY1977-FY2029

Source: CRS, based on OMB data from the FY2025 budget submission. Notes: FY2024 levels are estimated. FY2024-FY2029 levels reflect Administration proposals and projections. See OMB budget documents for further caveats.

International Affairs

Figure 5 shows levels of budget authority allocated to international affairs (budget function 150) as a share of GDP. Spending for activities within the international affairs budget function has fluctuated in response to changes in U.S. foreign policy and national security and economic priorities.

International Security Assistance rose sharply in the late 1970s and early 1980s, in large part due to foreign military financing support provided to Israel and Egypt following the 1979 Camp David Accords.⁶⁷ The Economic Support Fund (ESF), which provides financial support to promote political and socioeconomic stability within a range of countries of strategic importance to the United States, also grew rapidly in the same time period.⁶⁸ Funding for security assistance fell after the collapse of the Warsaw Pact governments in 1989 and the dissolution of the Soviet Union in 1991.

Figure 5. International Affairs (150) Subfunctions Discretionary budget authority as a percentage of GDP, FY1977-FY2029

Source: CRS, based on OMB data from FY2025 budget submission. Notes: FY2024 levels are estimated. FY2024-FY2029 levels reflect Administration proposals and projections. See OMB budget documents for further caveats.

The level of funding for International Development and Humanitarian Assistance fell from about 0.2% of GDP in the late 1970s to less than 0.1% of GDP in the 1990s. The George W. Bush Administration increased funding for International Development and Humanitarian Assistance in the early 2000s through initiatives such as the President's Emergency Plan for AIDS Relief (PEPFAR), which has supported programs to stem the spread of AIDS and HIV in sub-Saharan Africa and South Asia, and creation of the Millennium Challenge Corporation (MCC), which seeks to spur economic growth in relatively well-governed developing countries.⁶⁹ During the Obama Administration, funding for International Development and Humanitarian Assistance hovered around 0.15% of GDP, about midway between levels seen in the 1970s and in the 1990s. More recently, largely as a result of U.S. responses to the COVID-19 pandemic starting in 2020 and Russia's renewed invasion of Ukraine in 2022, International Development and Humanitarian Assistance has risen. In 2022, International Development and Humanitarian Assistance as a share of GDP peaked at more than 0.18%, a level last seen around 2009.

Costs of conducting foreign affairs, relative to GDP, rose during the first decade of the wars in Afghanistan and Iraq, but largely declined between FY2012 and FY2019. Following the declaration of the COVID-19 pandemic in 2020, the U.S. withdrawal from Afghanistan in 2021, and Russia's renewed invasion of Ukraine in 2022, Function 150 relative to GDP has increased. Heightened concerns over security of diplomatic facilities and personnel have also contributed to overall higher funding levels since 2001.

Upticks in the International Financial Programs subfunction before FY2000 reflect funds provided by the U.S. government to the International Monetary Fund. In exchange for those funds, the U.S. government receives Special Drawing Rights (SDRs).⁷⁰ Steadier International Financial Program funding after FY2000 appears to reflect changes in budget scoring treatment of those transactions. CBO has argued that a market-based assessment of U.S. government commitments to the IMF should include a material risk adjustment.⁷¹ The U.S. Treasury objected to CBO's analysis and contends that those transactions should be treated as an exchange of assets with no budgetary cost.⁷² For that reason OMB does not score those transactions as BA or outlays.⁷³

Domestic Social Programs

This section discusses budgetary trends among domestic social programs. Figure 6 shows discretionary funding trends for budget functions within the Human Resources superfunction.

Figure 6. Discretionary Funding for Human Resources Functions Discretionary budget authority as a percentage of GDP, FY1977-FY2029

Source: CRS, based on OMB data from FY2025 budget submission. Notes: FY2024 levels are estimated. FY2024-FY2029 levels reflect Administration proposals and projections. See OMB budget documents for further caveats.

In the past two decades, federal responses to the attacks of September 11, 2001, the 2007-2009 financial crisis and ensuing Great Recession, and the COVID-19 pandemic have had the most prominent effects of spending trends for most categories of federal domestic spending.

Nondefense Security and Nonsecurity Spending Diverge After 9/11

Domestic spending (i.e., nondefense spending excluding international affairs) increased after the attacks of September 11, 2001, after having fallen for much of the 1990s. Most of that increase in domestic spending occurred in areas related to nondefense security spending, as the federal government overhauled airport security procedures, and then established the Department of Homeland Security. Since 2001, several definitions of "security spending" have been used, most recently in the 2011 Budget Control Act (BCA).⁷⁴ Figure 7 shows funding trends divided by BCA security and nonsecurity categories.

Figure 7. Security and Nonsecurity Funding Trends Budget Authority as a Percentage of GDP, FY1977-FY2029

Source: CRS, based on OMB data from FY2025 budget submission. Notes: BCA security and nonsecurity categories used, except that war funding, certain program integrity funds, and emergency supplemental funding are included. The BCA security category included funding for the Departments of Defense, Homeland Security, Veterans Affairs, the National Nuclear Security Administration, the intelligence community management account, and all budget accounts in the International Affairs budget function (150). FY2024 levels are estimated. FY2024-FY2029 levels reflect Administration proposals and projections. See OMB budget documents for further caveats.

The Recovery Act

After the financial crisis of 2007-2008 plunged the United States into the deepest economic recession in decades, Congress passed the American Recovery and Reinvestment Act of 2009 (P.L. 111-5; ARRA), often known as the Recovery Act. ARRA includes support for state and local governments, as well as tax cuts and rebates among other provisions.⁷⁵ According to initial CBO estimates, ARRA provisions were expected to total $787.2 billion in increased spending and reduced taxes over the FY2009-FY2019 period or just over 5% of GDP in 2008, while a more recent CBO estimate put the total at $814 billion.⁷⁶ The effects of Recovery Act spending can be seen in most of the figures shown below.

Since 2010, however, total nondefense discretionary spending has declined in real (i.e., inflation-adjusted) terms.⁷⁷ Nondefense discretionary spending as a share of the economy been has declining more rapidly. Although economic growth has been on average slower than in some previous decades, most components of federal spending have grown even more slowly. Funding trends for most budget categories since FY2010 have been less volatile than in past decades.

Education, Training, Employment, and Social Services

Figure 8 shows spending trends for subfunctions within the Education, Training, Employment, and Social Services budget function.

Federal support for employment and training programs generally declined as a share of GDP between 1977 and 2023, the period depicted in Figure 8. The initial higher levels of funding largely reflect public service employment efforts under the Comprehensive Employment and Training Act (CETA; P.L. 93-203), which addressed high levels of unemployment following the first oil shock of 1973. The Job Training Partnership Act of 1982 (P.L. 97-300), enacted during the 1981-1982 recession, replaced CETA. After 1984, discretionary funding has declined as a share of GDP. Under subsequent workforce development statutes, the Workforce Investment Act of 1998 (P.L. 105-220) and the Workforce Innovation and Opportunity Act of 2014 (P.L. 113-128), training and employment funding as a share of GDP continued to decline.⁷⁸

Figure 8. Education, Training, Employment, and Social Services (500) Subfunctions Discretionary budget authority as a percentage of GDP, FY1977-FY2029

Source: CRS, based on OMB data from the FY2025 budget submission. Notes: FY2024 levels are estimated. FY2024-FY2029 levels reflect Administration proposals and projections. See OMB budget documents for further caveats.

Federal support for elementary and secondary education increased sharply following the reauthorization of the Elementary and Secondary Education Act (ESEA) by the No Child Left Behind Act of 2001 (NCLB; P.L. 107-110). Funding for most subfunctions within the budget function, including elementary, secondary, and higher education, rose sharply with enactment of ARRA and other legislative responses to the Great Recession of 2007-2009. Funding levels for education as measured as a percentage of GDP tapered off until 2020 with the enactment of discretionary funding for federal education programs in response to the COVID-19 pandemic through the Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-136). The majority of CARES Act education-focused funds were provided through the Education Stabilization Fund (ESF). Additional discretionary funding was provided for the ESF and ESF programs in response to the COVID-19 pandemic through the Coronavirus Response and Relief Supplemental Appropriations Act, 2021 (CRRSAA; Division M of the Consolidated Appropriations Act, 2021; P.L. 116-260). Finally, the largest tranches of pandemic-related funding for ESF programs were provided through mandatory funding included in the American Rescue Plan Act of 2021 (ARPA; P.L. 117-2).⁷⁹ Since 2021, discretionary funding levels for elementary and secondary education—measured as a percentage of GDP—have attenuated.

Federal Health Programs

Costs of federal health programs continue to play a central role in budgetary discussions. Total federal costs of the largest federal health care programs such as Medicare and Medicaid, however, are nearly all supported by mandatory spending and are thus not discussed here. Administrative costs for those programs, which account for a small portion of those costs, are generally funded by discretionary spending. Many other federal health programs, such as federal support for health research, public health programs, and veterans' health care, are mostly funded through discretionary spending. Figure 9 shows trends in discretionary funding within the Health (550) and Medicare (570) budget functions since FY1977. Several discretionary health subfunctions saw substantial increases during the COVID-19 pandemic.

The trajectory of funding for the hospital and medical care for veterans subfunction, which falls under another budget function and is also shown in Figure 12, is included for the sake of comparison. Veterans' health care spending as a percentage of GDP has increased since 2009 due to community care, mental health, and suicide prevention reforms that have increased overall spending. The veterans' health care budget subfunction also saw one-time increases during the COVID-19 pandemic in 2020 and 2021.⁸⁰

Figure 9. Federal Health Programs Discretionary budget authority as a percentage of GDP, FY1977-FY2029

Source: CRS, based on OMB data from the FY2025 budget submission. Notes: FY2024 levels are estimated. FY2024-FY2029 levels reflect Administration proposals and projections.

Discretionary funding within the health care services (551) subfunction supports activities and programs administered by the Centers for Disease Control and Prevention (CDC), the Health Resources and Services Administration, the Substance Abuse and Mental Health Services Administration (SAMSA), and the Indian Health Service (IHS), among other health-related agencies. From the mid-1980s through FY2001, funding within the health care services subfunction doubled. Since then, funding trends have been more volatile. This budget subfunction has seen spikes during public health emergencies and from other one-time funding.⁸¹ The large spike during 2020-2021 reflected the substantial and unprecedented spending for the health response to the COVID-19 pandemic.⁸² The downtick in FY2025 reflects proposed funding restrictions or reductions in the Children's Health Insurance Fund and the Child Enrollment Contingency Fund.⁸³

The National Institutes of Health (NIH) accounts for most of the health research and training (552) subfunction. Discretionary funding within the health research and training subfunction has usually exceeded discretionary funding for the health care services subfunction, except during the COVID-19 pandemic. After funding in the health research and training subfunction failed to keep up with the rate of GDP growth in the late 1970s and early 1980s, funding grew steadily as a percentage of GDP for the next 20 years. In the late 1990s, policymakers decided to double the NIH budget within a five-year period, from FY1999 to FY2003.⁸⁴ From FY2003 to FY2016, however, funding as a percentage of GDP generally fell, with the exception of increased funding provided through ARRA in FY2009.⁸⁵ From FY2016 to FY2023, NIH has seen relatively modest funding increases each year with a spike during the COVID-19 pandemic.⁸⁶

Discretionary funding for Medicare (subfunction 571), which, as noted above, mostly funds administrative costs, and the consumer and occupational health and safety (554) subfunction, which includes U.S. Food and Drug Administration (FDA) spending, has been relatively stable over time. Each has remained at about 0.03% to 0.04% of GDP over the period. Total FDA spending increased over the period covered, but budget authority provided through the annual appropriations from the Treasury general fund has been offset by user fees collected by the agency.⁸⁷

Income Security

The bulk of federal funding for income security programs is provided through mandatory spending. In general, discretionary spending—outside of housing assistance—funds administrative costs of those programs. Housing assistance programs, unlike most other income security programs, are largely supported by discretionary funding. Figure 10 shows trends in the Income Security (600) budget function.

The largest changes within the Income Security budget function reflect shifts in the structure and funding levels for programs within the housing assistance (604) subfunction in the 1970s and early 1980s.⁸⁸ Federal support for affordable housing shifted from supporting up-front long-term funding for construction of publicly subsidized units toward annual funding for rent subsidies for low-income households to use in existing housing and block grants to local governments over the time period in question.⁸⁹ Since the late 1970s, the share of BA for housing assistance has fluctuated, driven by the creation of new programs and activities, as well as rescissions of recaptured unobligated balances. Housing assistance's share of GDP, however, has remained at less than a quarter of what it was at its peak. Legislative responses to the Great Recession of 2007-2009 led to increased funding for various housing programs in FY2009. Discretionary funding for tenant rental and homeless assistance increased modestly in FY2020.

Discretionary funding for other income security subfunctions generally remained below 0.1% of GDP until FY2020. Responses to the COVID-19 pandemic increased funding for some programs, such as for the Child Care and Development Block Grant, although increases in mandatory spending were larger.⁹⁰

Figure 10. Income Security (600) Subfunctions Discretionary budget authority as a percentage of GDP, FY1977-FY2029

Source: CRS, based on OMB data from the FY2025 budget submission. Notes: Most income security benefits, aside from housing assistance, are generally funded by mandatory spending, which is not shown here. FY2024 levels are estimated. FY2024-FY2029 levels reflect Administration proposals and projections. See OMB budget documents for further caveats.

Social Security

Discretionary funding for Social Security, depicted in Figure 11, supports program administration. Social Security benefits are generally funded by mandatory spending. Program administration costs supported by discretionary funding are a small fraction of mandatory benefit amounts. Those costs, which increased in nominal dollar terms in most years, grew more slowly than the rate of economic growth. Over time, the composition of those costs evolved. In the 1970s, costs of administrating Old-Age and Survivors Insurance (OASI) benefits were nearly three times as large as those for Disability Insurance (DI) benefits. Since FY2012, costs of administering DI benefits, however, have exceeded costs of administering OASI benefits.

Figure 11. Social Security (650) Subfunction Discretionary budget authority as a percentage of GDP, FY1977-FY2029

Source: CRS, based on OMB data from the FY2025 budget submission. Notes: FY2024 levels are estimated. FY2024-FY2029 levels reflect Administration proposals and projections. See OMB budget documents for further caveats.

Veterans' Benefits and Services

The Department of Veterans Affairs (VA) provides a range of benefits and services to veterans who meet certain eligibility criteria.⁹¹ These benefits and services include, among other things, hospital and medical care; disability compensation and pensions; education; veteran readiness and employment (VR&E); assistance to homeless veterans; home loan guarantees; administration of life insurance, as well as traumatic injury protection insurance for servicemembers; and death benefits that cover burial expenses.⁹²

Health care provided through VA's Veterans Health Administration (VHA) accounts for a majority (about 90%) of discretionary funding within the Veterans' Benefits and Services (700) budget function.⁹³ For instance, in FY2023 VA's total discretionary funding was $134.72 billion, and VHA accounted for $119.66 billion.⁹⁴ Departmental administration, information technology, and smaller discretionary programs account for the remainder.⁹⁵ Veterans' income security programs, such as disability compensation, pensions, and readjustment benefits (such as education), are generally supported by mandatory spending. Essentially all discretionary spending within the veterans' benefits and services subfunction supports general operating expenses for administering disability compensation and readjustment benefits and services. Figure 12 shows trends in discretionary funding for the veterans' benefits and services budget function since FY1977.

The Hospital and Medical Care for Veterans (703) subfunction, as noted above, accounts for the bulk of funding with the veterans' benefits and services budget function. Since 2001, veterans' health care costs have been one of the fastest-growing components of discretionary spending.

Three major trends have affected spending on veterans' health care. These could be characterized as demographics, health care trends such as demand for care and reliance on VHA health services, and legislative changes expanding services. First, the total number of veterans has been decreasing. From 2009 to 2023, the number of World War II, Korean War, and Vietnam War veterans dropped from 12 million to 6 million.⁹⁶ Despite the decline in the overall veteran population, the number of veterans enrolled in the VA health care system has increased. The share of the veteran population enrolled in the health care system grew from 18.4% in FY2000 to 50% in FY2023. Additionally, the veteran population is generally older than the overall U.S. population, and veterans over the age of 65 are driving growth in long-term care services such as nursing home care and assisted living.⁹⁷ Currently, newer veterans from Operation Enduring Freedom (OEF)/Operation Iraqi Freedom (OIF)/Operation New Dawn (OND)/Operation Inherent Resolve (OIR) account for about 18% of the overall VA patients served.⁹⁸ Over time these veterans could account for a greater share of the veteran population.⁹⁹ Moreover, the number of women veterans is growing and also makes an increasing share of VHA patients with gender-specific health needs.¹⁰⁰

Figure 12. Veterans' Benefits and Services (700) Subfunctions Discretionary budget authority as a percentage of GDP, FY1977-FY2029

Source: CRS, based on OMB data from the FY2025 budget submission. Notes: FY2024 levels are estimated. FY2024-FY2029 levels reflect Administration proposals and projections. See OMB budget documents for further caveats. Discretionary funding for the Veterans education, training, and rehabilitation (702) and the Veterans housing (704) subfunctions has not exceeded 0.005% of GDP since FY1977. Programs within those subfunctions are generally funded by mandatory spending.

Second, the demand and reliance on VA care affects health care spending. VA estimates that of the enrolled veterans in the VA health care system, on average about 38% rely on the VA for their health care needs.¹⁰¹ Nevertheless, a higher percentage of veterans enrolled in the VA health care system have multiple chronic conditions when compared to the nonveteran population. For example, veterans generally experience arthritis earlier when compared to nonveterans; veterans have higher rates of cancer than nonveterans after age 50; and veterans deployed to a theater of conflict and those living in a rural county have slightly increased incidence of chronic diseases.¹⁰² These higher morbidity rates increase VA's health care spending.¹⁰³

Third, since 2009 Congress has expanded programs for community care,¹⁰⁴ mental health and suicide prevention, and services for women veterans at VA, with the passage of several major pieces of legislation. These include, among others, the John S. McCain III, Daniel K. Akaka, and Samuel R. Johnson VA Maintaining Internal Systems and Strengthening Integrated Outside Networks Act of 2018 or the "VA MISSION Act of 2018" (P.L. 115-182); the Johnny Isakson and David P. Roe, M.D. Veterans Health Care and Benefits Improvement Act of 2020 (P.L. 116-315); the Commander John Scott Hannon Veterans Mental Health Care Improvement Act of 2019 (P.L. 116-171); and the Veterans Comprehensive Prevention, Access to Care, and Treatment Act of 2020 or the "Veterans COMPACT Act of 2020" (P.L. 116-214). Finally, the veterans' health care budget subfunction also saw one-time funding increases during the COVID-19 pandemic in 2020 and 2021.¹⁰⁵

Funding within the Other Veterans' Benefits and Services (705) subfunction, which has accounted for roughly one-tenth of funding within the Veterans' Benefits and Services budget function, has doubled since FY2005 as a percentage of GDP.

Physical Resources

The Physical Resources superfunction includes the budget subfunctions Energy, Natural Resources and Environment, Commerce and Housing Credit, Transportation, and Community and Regional Development. Figure 13 shows discretionary funding for each of those budget functions as a percentage of GDP.

Energy

Most funding within the Energy budget function supports operations of the Department of Energy (DOE). The remainder supports rural electrification programs within the U.S. Department of Agriculture, tax credits administered by the U.S. Treasury, certain activities of the Nuclear Regulatory Commission, the Tennessee Valley Authority, and a few other agencies. About half of DOE's budget funds nuclear weapons programs or efforts to clean up sites used by those programs, which fall within the Atomic Energy Defense Activities (053) subfunction.

Figure 13. Discretionary Funding for Physical Resources Discretionary budget authority as a percentage of GDP, FY1977-FY2029

Source: CRS, based on OMB data from FY2025 budget submission. Notes: FY2024 levels are estimated. FY2024-FY2029 levels reflect Administration proposals and projections. See OMB budget documents for further caveats.

The largest spike in funding within the energy supply (271) subfunction visible in Figure 14 reflects responses to the second oil shock of 1978-1979. Following a revolution in 1978, Iran cut its oil exports, which caused widespread disruptions through world energy markets in 1979.¹⁰⁶ In June 1980, President Jimmy Carter signed the Energy Security Act (P.L. 96-294), which established various renewable energy initiatives and provided $88 billion for synthetic fuels production.¹⁰⁷ The Synthetic Fuels Corporation, which the act had created, was abolished in 1985 after struggling to develop viable projects.¹⁰⁸

A smaller downtick in the emergency energy preparedness (274) subfunction in FY1980 also reflects world oil supply disruptions that followed the Iranian revolution. The United States, in consultation with G7 partner countries, agreed to suspend oil purchases for the Strategic Petroleum Reserve in early 1979.¹⁰⁹ In June 1980, the Energy Security Act mandated resumed oil reserve purchases, although $2 billion was rescinded from the Strategic Petroleum Reserve the following month, which is reflected in the negative value for FY1980.¹¹⁰ Congress required additional oil reserve purchases in December 1980.¹¹¹

Figure 14. Energy (270) Subfunctions Discretionary budget authority as a percentage of GDP, FY1977-FY2029

Source: CRS, based on OMB data from FY2025 budget submission. Notes: FY2024 levels are estimated. FY2024-FY2029 levels reflect Administration proposals and projections. See OMB budget documents for further caveats.

The smaller spike visible in Figure 14 resulted from funding provided by ARRA in 2009, which provided $90 billion in funding or tax credits for clean energy projects, not all of which were within the energy budget function. DOE received about $35 billion in funding, with most of the remainder supporting energy-related tax credits as well as mass transportation and high-speed rail initiatives.¹¹² The bump in discretionary budget authority beginning in FY2022 is a result of funding provided by the Infrastructure Investment and Jobs Act (IIJA, P.L. 117-58), which appropriated more than $62.2 billion over five years (FY2022-FY2026) to DOE.

Natural Resources and Environment

Funding within the Natural Resources and Environment budget function supports activities of a wide range of federal agencies. Much of the discretionary funding for the U.S. Department of the Interior (DOI) and all of the discretionary funding for the U.S. Environmental Protection Agency (EPA) falls within this function, as does most of the funding for the U.S. Forest Service and certain conservation programs of agencies within the U.S. Department of Agriculture. Funding within this budget function also supports operations of the U.S. Department of Commerce's National Oceanic and Atmospheric Administration (NOAA), water projects of the U.S. Army Corps of Engineers (USACE), and the U.S. Coast Guard's pollution control activities related to spills of oil and hazardous substances in the coastal zone, among other agencies and activities.

The Natural Resources and Environment function has five subfunctions: water resources (301), conservation and land management (302), recreational resources (303), pollution control and abatement (304), and other natural resources (306).¹¹³ As a percentage of GDP, more variation in discretionary budget authority was exhibited throughout the period in three subfunctions—water resources, conservation and land management, and pollution control and abatement—than in the other two subfunctions.

The water resources subfunction (301) principally represents water infrastructure (e.g., multipurpose dams, navigation locks, levees) built and sometimes owned and operated by the federal government. Discretionary budget authority for water resources projects has, by and large, declined as a percentage of GDP since the late-1970s, as Figure 15 indicates, due to a number of reasons. For instance, the Water Resources Development Act of 1986 (WRDA; P.L. 99-662) changed cost shares for USACE projects that reduced the federal share of project costs. Also, a number of Administrations reduced emphasis on construction of large, multipurpose federal water resource infrastructure, including by the Bureau of Reclamation, in general.¹¹⁴ In certain years since FY2005, funding for the water resources subfunction increased as a percentage of GDP. The peaks shown in Figure 15 generally reflect enactment of supplemental appropriations for natural disaster response (e.g., hurricanes and subsequent construction of flood risk reduction projects), economic stimulus, and infrastructure development.¹¹⁵

Discretionary budget authority for the conservation and land management subfunction (302) encompasses various agencies and programs. It includes funding for certain U.S. Department of Agriculture agencies and certain DOI agencies, among other entities.¹¹⁶ Discretionary budget authority for this subfunction fluctuated over the period examined. It declined overall from the late 1970s to about half that level in FY2021. The peak in FY2022, as a percentage of GDP, can be attributed in large part to emergency supplemental funding in the Infrastructure Investment and Jobs Act (P.L. 117-58, IIJA) for various activities within the subfunction. They included abandoned mine land and water reclamation projects; orphaned well site plugging, remediation, and restoration activities; federal land and resource management; ecosystem restoration; and wildland fire management.

Figure 15. Natural Resources and Environment (300) Subfunctions Discretionary budget authority as a percentage of GDP, FY1977-FY2029

Source: CRS, based on OMB data from FY2025 budget submission. Notes: FY2024 levels are estimated. FY2024-FY2029 levels reflect Administration proposals and projections. See OMB budget documents for further caveats.

The recreational resources subfunction (303) includes the National Park Service (NPS) as well as various smaller entities. From the late 1970s to the early 1980s, discretionary budget authority for recreational resources (303) declined as a percentage of GDP. This was partly due to a reduction in funding from the Land and Water Conservation Fund for the NPS. Portions of this fund are provided to the NPS for land acquisition and grants to states for outdoor recreation. Thereafter, recreational resources continued to decline, but at a more modest rate than previously.

The pollution control and abatement subfunction (304) includes a wide range of environmental protection activities of EPA and other federal agencies under authority of statutes such as the Clean Air Act, Clean Water Act, Safe Drinking Water Act, and Comprehensive Environmental Response, Compensation, and Liability Act. The peak in Figure 15, in the 1970s, reflects federal support for construction of local wastewater treatment plants and other water quality initiatives, which fall within subfunction 304.¹¹⁷ Figure 15 illustrates that discretionary budget authority for subfunction 304 as a percentage of GDP gradually decreased over time until FY2022. The subsequent increase from FY2022 through FY2026 primarily reflects supplemental appropriations to EPA for water infrastructure financial assistance programs in the Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58), which was enacted in November 2021.¹¹⁸ Federal aid for local water infrastructure projects, especially EPA assistance, has evolved over time from a program that provided grants directly to local governments for wastewater treatment plant construction to the primary programs for clean water and drinking water infrastructure projects. Under these programs, the federal government provides grants to states to capitalize state loan programs.¹¹⁹ More recently, Congress has amended these loan programs to increase the amount of principal forgiveness, grants, or other types of additional subsidization that states can provide to communities.¹²⁰ Further, EPA has the authority to provide direct loans or grants to support such infrastructure.¹²¹

The Other Natural Resources (306) subfunction includes the U.S. Geological Survey; activities of NOAA; and certain DOI Departmental Offices and Department-wide programs, among others. Discretionary budget authority for this subfunction had a relatively modest decline, as a percentage of GDP, throughout the period examined.

Commerce and Housing Credit

The commerce and housing credit budget function supports a variety of programs within the U.S. Department of Commerce and the Department of Housing (HUD), along with several other federal agencies. The 2007-2009 financial crisis and subsequent Great Recession led to changes in federal housing finance policies.¹²²

The interrelation between discretionary and mandatory funding for many programs within that budget function is complex. In part, that complexity stems from how federal credit rules operate. Many of the programs in this budget function provide credit for housing, business loans, and other purposes, and their costs are therefore calculated using methods prescribed by the Federal Credit Reform Act (FCRA; described above). Changes in estimates of the subsidy costs of those loans are sensitive to anticipated economic conditions, which can cause large fluctuations in budgetary costs, even if current cash flows are more stable.

When the present value of fees or other receipts collected through a program exceeds disbursements and default costs, estimated using FCRA methods, a negative credit subsidy results which appears as negative BA. For example, the large negative amounts shown in Figure 16 for the mortgage credit (371) subfunction following the 2007-2009 Great Recession largely reflect negative credit subsidy estimates for the single-family mortgage insurance program within the Federal Housing Administration (FHA) and, to a lesser extent, Ginnie Mae (Government National Mortgage Association).¹²³ Expected negative credit subsidies for FHA-insured mortgages increased in the years after the housing market turmoil of the late 2000s as a result of several factors, including better credit quality of FHA-insured mortgages, increases in the fees that FHA charges to borrowers, and higher FHA loan volumes.

Figure 16. Commerce and Housing Credit (370) Subfunctions Discretionary budget authority as a percentage of GDP, FY1977-FY2029

Source: CRS, based on OMB data from FY2025 budget submission. Notes: FY2024 levels are estimated. FY2024-FY2029 levels reflect Administration proposals and projections. See OMB budget documents for further caveats.

The other advancements of commerce (376) subfunction includes a diverse range of activities within the Department of Commerce, the Small Business Administration (SBA), many independent federal regulatory bodies, and other entities. Funding for the decennial census falls within this subfunction and is reflected in peaks at 10-year intervals visible in Figure 16. The SBA administered several COVID-19 pandemic relief programs that provided loans and grants to small businesses and nonprofit organizations.¹²⁴ The negative value for FY2025 reflects a proposed cancellation of $9.6 billion in BA for the Department of Commerce's Nonrecurring Expenses Fund, which supports various information technology projects.¹²⁵

The Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58), enacted in November 2021, provided $65 billion in funding programs to expand access to broadband internet connections administered by the National Telecommunications and Information Administration and the Federal Communications Commission.¹²⁶

The U.S. Postal Service (USPS; postal service subfunction 376) operates under a mandate to cover its costs with its own revenues, and thus runs without an operating subsidy from the federal government.¹²⁷ Congress does appropriate funds to offset postal revenues that were foregone by charging concessionary rates for certain postal services, although as can be seen in Figure 16, that funding has decreased over time.¹²⁸

Transportation

Funding within the transportation budget function primarily supports activities of the U.S. Department of Transportation (DOT), including grants and other forms of financial support provided to state and local governments. That funding also supports some operations of the U.S. Coast Guard, which was transferred from DOT to the U.S. Department of Homeland Security in 2003, as well as various boards and commissions involved in transportation issues. Figure 17 shows funding trends within the transportation budget function.

Some ground transportation programs have had a special budgetary status since 1988, in which BA is treated as mandatory but outlays are classified as discretionary.¹²⁹ This status enables some transportation funding to avoid budgetary restraints that affect most other federal funding. Moreover, that dual designation of surface transportation funding complicates analysis of trends in federal spending to support various forms of transportation. Thus, trends in funding for ground transportation shown in Figure 17 exclude the vast majority of federal highway and mass transit (also known as public transportation) funding supported by the Highway Trust Fund, which is classified as mandatory, rather than discretionary, BA. Moreover, those amounts do not reflect expenditures of state and local governments, which are typically required to match federal funds at some level. Discretionary funding for ground transportation also does not reflect transfers from the U.S. Treasury's general fund to the Highway Trust Fund.¹³⁰

The ground transportation (401) subfunction includes federal support for mass transit and Amtrak, as well as funding for operations of DOT bureaus such as the Federal Railroad Administration and the Federal Highway Administration, as well as various transportation-related safety or regulatory bodies. The peak in discretionary funding for ground transportation during the late 1970s and early 1980s evident in Figure 17 reflects, in large measure, grants to local governments to expand, modernize, or operate mass transit systems.¹³¹ Through the 1980s, however, that support was reduced. A second peak reflects increased funding for road and other infrastructure projects in ARRA.

Figure 17. Transportation (400) Subfunctions Discretionary budget authority as a percentage of GDP, FY1977-FY2029

Source: CRS, based on OMB data from FY2025 budget submission. Notes: FY2024 levels are estimated. FY2024-FY2029 levels reflect Administration proposals and projections. See OMB budget documents for further caveats.

Funding within the air transportation (402) subfunction has varied less. Increased funding for airport security after the attacks of September 11, 2001, is visible in Figure 17. The Transportation Security Administration (TSA) was created within DOT in November 2001, but was transferred to the U.S. Department of Homeland Security (DHS) in March 2003.

Funding within the water transportation (403) subfunction, again measured as a percentage of GDP, has been even more stable.

Community and Regional Development

The Community and Regional Development budget function (450) includes funding for various federal programs that support state and local government development initiatives in urban and rural areas, as well as funding to support responses to natural and other disasters. Figure 18 shows funding trends within that budget function.

The largest item within the Community Development (451) subfunction is the U.S. Department of Housing and Urban Development's (HUD's) Community Development Fund, which provides resources for the Community Development Block Grant (CDBG) program.¹³² That subfunction also includes programs administered by the U.S. Department of Agriculture (USDA), the U.S. Department of the Treasury, and other federal agencies. Federal community development funding fell from almost 0.2% of GDP in the late 1970s to about half that level in the 1990s.

Figure 18. Community and Regional Development (450) Subfunctions Discretionary budget authority as a percentage of GDP, FY1977-FY2029

Source: CRS, based on OMB data from FY2025 budget submission. Notes: FY2024 levels are estimated. FY2024-FY2029 levels reflect Administration proposals and projections. See OMB budget documents for further caveats.

Funding since FY2000 has fluctuated significantly, reflecting congressional responses to natural and other disaster-related events, and economic recessions.¹³³ Community Development Block Grant Disaster Recovery Funding (CDBG-DR), a part of the Community Development Fund, has supported long-term recovery efforts and met needs not addressed by other federal programs. Congress has often provided CDBG-DR funding through supplemental emergency appropriations following disasters.

The Area and Regional Development (452) subfunction includes a wide range of programs, from operations of the Department of Interior's Bureau of Indian Affairs (BIA) and Bureau of Indian Education (BIE), to assorted USDA rural development initiatives, as well as Department of Commerce's Economic Development Administration (EDA) programs and federally chartered regional development commissions, such as the Appalachian Regional Commission, the Delta Regional Authority, the Denali Commission, and the Northern Border Regional Commission. An anti-recession measure—the Public Works Employment Act (P.L. 95-28)—increased funding for FY1977 and FY1978 with the aim of supporting local public works-focused job creation efforts.

The disaster relief and insurance (453) subfunction mainly funds the Federal Emergency Management Agency, which has been part of the Department of Homeland Security (DHS) since 2003. That subfunction also includes other programs within USDA, SBA, and HUD. Funding for the disaster relief and insurance subfunction has been volatile in large part because it is driven by responses to natural and manmade disasters that by definition are difficult to anticipate. The largest spike in funding reflects responses to Hurricanes Katrina, Rita, and Wilma, which hit the Gulf Coast in 2005. A smaller spike in FY2013 reflects funding for responses to Hurricane Sandy, which hit the Atlantic Coast. A larger spike for FY2018 reflects responses, especially through the Disaster Relief Fund,¹³⁴ to two hurricanes that hit Puerto Rico and the U.S. Virgin Islands in September 2017, as well as other hurricanes and floods that hit the eastern and Gulf Coast states.¹³⁵ The spike at FY2020 mostly reflects funding for the Disaster Relief Fund to support programs responding to the COVID-19 pandemic.¹³⁶

Other Federal Functions

The Other Federal Functions category includes the General Science, Space, and Technology; Agriculture; Administration of Justice; and General Government budget functions. Figure 19 shows discretionary funding trends for those functions.

General Science, Space, and Technology

Funding within the General Science, Space, and Technology budget function (250)—shown in Figure 20—has been dominated for most of the past half century by spending to support operations of the National Aeronautics and Space Administration (NASA), which falls within the space flight, research and supporting activities subfunction (252). In some years during the mid-1960s, as the Apollo program was moving toward its aim of manned lunar exploration, NASA accounted for over 4% of total federal spending—well beyond the scale used in Figure 20.¹³⁷ After the Apollo program ended in the early 1970s, NASA funding levels in inflation-adjusted terms and as a percentage of GDP declined in the face of budgetary pressures. The narrow peak visible in Figure 20 reflects funding for a replacement space shuttle after the January 1986 Challenger disaster. From FY1993 to FY2016, BA for NASA fell from about 0.2% of GDP to about 0.1% of GDP, as funding did not keep pace with inflation and economic growth.

Figure 19. Discretionary Funding for Other Government Functions Discretionary budget authority as a percentage of GDP, FY1977-FY2029

Source: CRS, based on OMB data from FY2025 budget submission. Notes: FY2024 levels are estimated. FY2024-FY2029 levels reflect Administration proposals and projections. See OMB budget documents for further caveats.

Figure 20. General Science, Space, and Technology (250) Subfunctions Discretionary budget authority as a percentage of GDP, FY1977-FY2029

Source: CRS, based on OMB data from FY2025 budget submission. Notes: FY2024 levels are estimated. FY2024-FY2029 levels reflect Administration proposals and projections. See OMB budget documents for further caveats.

Funding for the General Science and Basic Research subfunction (251) mostly supports the National Science Foundation (NSF) and the basic research activities of the Office of Science within the Department of Energy (DOE). As a proportion of GDP, it rose, albeit unsteadily, from the mid-1980s to the late 2000s. In 2006, the George W. Bush Administration's American Competitiveness Initiative, established by and subsequently authorized by Congress in the America COMPETES Act (P.L. 110-69) and America COMPETES Reauthorization Act of 2010 (P.L. 111-358), set out a goal to double funding for NSF and the DOE Office of Science. That goal has not been achieved. In FY2009, ARRA provided a temporary boost in funding for general science and basic research.

Agriculture

The Agriculture budget function (350) includes the Agricultural Research and Services (352) subfunction and the Farm Income Stabilization (351) subfunction. Nearly all funding within that budget function supports operations of the U.S. Department of Agriculture (USDA). Some of the largest USDA programs, however, such as the Supplemental Nutrition Assistant Program (SNAP) and some child nutrition programs, are classified within the Income Support budget function. Most Forest Service and USDA conservation activities fall under the Natural Resources and Environment budget function, and provision of foreign food aid falls under the International Affairs budget function. Figure 21 shows trends within the Agriculture budget function.

Figure 21. Agriculture (350) Subfunctions Discretionary budget authority as a percentage of GDP, FY1977-FY2029

Source: CRS, based on OMB data from FY2025 budget submission. Notes: FY2024 levels are estimated. FY2024-FY2029 levels reflect Administration proposals and projections. See OMB budget documents for further caveats.

The largest components of discretionary funding within the Agricultural Research and Services subfunction support activities of the Agricultural Research Service and the National Institute of Food and Agriculture. Funding for the Animal and Plant Health Inspection Service (APHIS) quadrupled between FY1999 and FY2003. APHIS also received extra funds to respond to bird flu threats in FY2015, which are reflected in a small peak visible in Figure 21.¹³⁸ Overall, funding for Agricultural Research and Services as a percentage of GDP has declined from about 0.05% in the late 1970s to about half that level in the mid-2010s. The two larger peaks for FY2020 and FY2022 reflect funding to support agricultural producers affected by the COVID-19 pandemic provided in the CARES Act (P.L. 116-136; Division B, Title I), the American Rescue Plan Act of 2021 (P.L. 117-2; Title I), and other legislation.¹³⁹

The sharp funding increase within the Farm Income Stabilization subfunction for FY1992 reflects implementation of the Federal Credit Reform Act of 1990 (FCRA; P.L. 101-508), which changed the budgetary treatment of federal loan and loan guarantee programs.¹⁴⁰ The peak in FY2008 reflects ad hoc disaster assistance. Many farm income stabilization programs are mostly funded via mandatory spending, although discretionary spending generally covers administrative costs.

Administration of Justice

Figure 22 shows funding trends within the Administration of Justice (750) budget function, which includes most federal judicial, law enforcement, and correctional activities.

The Federal Law Enforcement Activities (751) subfunction includes operations of the Department of Homeland Security (DHS), such as the U.S. Customs and Border Protection (CBP), the U.S. Immigration and Customs Enforcement (ICE), and the U.S. Secret Service, as well as operations of the U.S. Department of Justice (DOJ), including the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the U.S. Marshals (USMS). Counterterrorism activities, which account for roughly half of the FBI's funding, are classified under the Defense-Related Activities (054) subfunction.

Funding within the Federal Law Enforcement subfunction, measured as a percentage of GDP, more than doubled in the period FY1980 to FY2010. Funding increases for CBP and ICE account for much of that increase. In FY1977, CBP and ICE accounted for just over a third (35%) of all funding within the federal law enforcement activities subfunction, while in FY2016 they accounted for over half (54%). Since FY2010, however, funding as a percentage of GDP has fallen to a level slightly above what it was in the mid-2000s. During that time period, funding for CBP and ICE rose by 10% in nominal terms, while funding for the rest of the subfunction was essentially flat.

The Federal Litigative and Judicial Activities subfunction (752) includes operations of the judicial branch and trial-related activities such as pre-trial detention by U.S. Marshals and publicly funded legal defense services. The subfunction also covers operations of offices of U.S. Attorneys and legal activities of DOJ, as well as boards and commissions that address legal matters. Funding for this subfunction, measured as a percentage of GDP, has trended slightly upward until FY2010 and slightly downward since then.

Figure 22. Administration of Justice (750) Subfunctions Discretionary budget authority as a percentage of GDP, FY1977-FY2029

Source: CRS, based on OMB data from FY2025 budget submission. Notes: FY2024 levels are estimated. FY2024-FY2029 levels reflect Administration proposals and projections. See OMB budget documents for further caveats.

The Federal Correctional Activities subfunction (753) includes the DOJ Federal Prison System. The small increase visible in Figure 22 reflects a one-time increase of about $1 billion for prison buildings and facilities in FY1990.

The Criminal Justice Assistance subfunction (754) includes DOJ programs that assist state and local governments combat crime, violence against women, and drug trafficking; and that strengthen local juvenile justice and other local initiatives. The increase in funding visible in Figure 22 in FY1994 reflects enactment of the Violent Crime Control and Law Enforcement Act of 1994 (P.L. 103-322), by which Congress and President Bill Clinton aimed to fund the hiring of an additional 100,000 local police officers via the community-oriented policing (COPS) program.¹⁴¹ After decreases in funding for COPS during the mid-2000s, additional funds were provided as part of the ARRA stimulus. Since then, the level of funding, measured as a percentage of GDP, has decreased.

In some years, restrictions on the Crime Victims Fund (CVF) were used to offset other discretionary spending according to budgetary scoring rules governing changes in mandatory program spending (CHIMPS). Those restrictions did not reduce the flow of federal support for state grants, because CVF balances were well above usual grant funding levels.

According to budget estimates from OMB, however, DOJ will not be able to sustain FY2023 levels of funding for programs funded by the Crime Victims Fund (CVF) in FY2024.¹⁴² For several years, the annual carryover balance of the CVF has declined, and the CVF balance, as of January 31, 2024, was $1.291 billion.¹⁴³ This is not enough to sustain the $1.9 billion obligation cap set by Congress to fund Victims of Crime Programs for FY2023.

General Government

The General Government (800) budget function includes costs of operating the legislative and executive branches, as well as administering federal personnel policy, managing federal records and property, and providing fiscal support to state and local governments. Figure 23 shows trends in funding by subfunction within that budget function.

The Legislative Functions (801) subfunction includes activities of Congress and congressional agencies, such as the Government Accountability Office (GAO), the Congressional Budget Office (CBO), and the Congressional Research Service (CRS). The subfunction also includes the Capitol Police and the Architect of the Capitol, along with various congressional commissions and boards. From FY1977 to FY2000, funding for the legislative functions subfunction, measured as a percentage of GDP, trended slightly downward. Since then, funding for that subfunction has ranged from 0.03% to 0.04% of GDP.

Figure 23. General Government (800) Subfunctions Discretionary budget authority as a percentage of GDP, FY1977-FY2029

Source: CRS, based on OMB data from FY2025 budget submission. Notes: FY2024 levels are estimated. FY2024-FY2029 levels reflect Administration proposals and projections. See OMB budget documents for further caveats.

The Executive Direction and Management (802) subfunction includes activities of the White House, the Executive Office of the President, agencies closely connected to the President such as the Office of Management and Budget (OMB), the U.S. Trade Representative, and certain drug control activities. Various boards, commissions, councils, and offices associated with the presidency are also included. Over the FY1977-FY2017 period, funding within that subfunction has not exceeded 0.01% of GDP.

The Central Fiscal Operations (803) subfunction includes operations of the Internal Revenue Service (IRS) as well as fiscal and currency operations of the U.S. Treasury. Since FY1990, the IRS accounted for at least 90% of the funding within that subfunction. Thus, to a large extent, the decline in funding for the subfunction, measured as a percentage of GDP, reflects trends in funding for the IRS, which has resulted in reductions in staffing and enforcement activities.¹⁴⁴ The Inflation Reduction Act of 2022 (P.L. 117-169) provided $79 billion in mandatory funding to support activities similar to those previously funded via discretionary funds.¹⁴⁵ The Fiscal Responsibility Act (FRA; P.L. 118-5) rescinded $1.4 billion of those funds, which is reflected in the downtick for FY2024.¹⁴⁶

The General Property and Records Management (804) subfunction includes operations of the General Services Administration (GSA) and the National Archives and Records Administration (NARA). Fluctuations in funding within this subfunction in large part reflect costs of GSA's Federal Buildings Fund.¹⁴⁷ That fund operates somewhat as a revolving fund that receives rent payments from federal agencies. Proceeds, through appropriations law, are used to lease properties or to acquire and maintain federally owned properties, although it has received supplemental appropriations to fund buildings in some years. In other years, rental revenues exceeded building expenses, resulting in negative budget authority.

The Central Personnel Management (805) subfunction includes operations of the Office of Personnel Management (OPM) as well as several offices concerned with federal workforce issues such as the Merit Systems Protection Board, the Office of Special Counsel, and the Office of Government Ethics. Funding for this subfunction was about 0.05% of GDP in the late 1970s, and that percentage has declined since then.

The General Purpose Fiscal Assistance (806) subfunction covers various forms of assistance to state and local government. The high funding levels visible in Figure 23 in the 1970s reflect credit support offered to New York City.¹⁴⁸ A facility for short-term loans that were to be paid back at the end of each city fiscal year supplied the bulk of that support.¹⁴⁹ The subfunction also includes federal support for the District of Columbia.¹⁵⁰ Since the early 1980s, when this funding subfunction accounted for about 0.2% of GDP, funding according to that measure has declined.

The Other General Government (808) subfunction includes a broad array of miscellaneous federal activities. The mid-2000s uptick visible in Figure 23 reflects federal support for electoral reform.

Appendix. Descriptions of Budget Functions

BUDGET FUNCTION 050: NATIONAL DEFENSE

The National Security function includes funds to develop, maintain, and equip the military forces of the United States. Historically, about 95% of these funds go to Department of Defense military activities, with remaining funding dedicated to atomic energy defense activities within the Department of Energy and other defense-related activities.

BUDGET FUNCTION 150: INTERNATIONAL AFFAIRS

The International Affairs function contains spending on international humanitarian, development, and security assistance; the conduct of foreign affairs; foreign information and exchange activities; and international financial programs. The funding supports operations at major agencies including the Departments of State, Treasury, and Agriculture; the U.S. Agency for International Development (USAID); and the Millennium Challenge Corporation.

BUDGET FUNCTION 250: SCIENCE AND TECHNOLOGY

The Science and Technology function includes the National Science Foundation, programs other than aviation programs at the National Aeronautics and Space Administration (NASA), and general science programs at the Department of Energy.

BUDGET FUNCTION 270: ENERGY

The Energy function concerns the production, development, and use of energy for the country. This function contains civilian energy programs at agencies including the Departments of Energy and Agriculture, the Tennessee Valley Authority, the Federal Energy Regulatory Commission, and the Nuclear Regulatory Commission.

BUDGET FUNCTION 300: NATURAL RESOURCES AND ENVIRONMENT

The Natural Resources and Environment function focuses on the management, development, and maintenance of the nation's natural heritage. This function includes conservation of land and water resources; development of water power and transportation infrastructure; and agencies and resources associated with the management and regulation of pollution, public and recreational
lands, and natural resources.

BUDGET FUNCTION 350: AGRICULTURE

The Agriculture function includes the Department of Agriculture and the Farm Credit Administration, and only deals with programs concerned with agricultural production.

BUDGET FUNCTION 370: COMMERCE AND HOUSING CREDIT

The Commerce and Housing Credit function includes the regulation and promotion of commerce and certain housing policies and agencies. Agencies concerned with the economy as a whole fall under this function. In addition, general-purpose subsidies and credit subsidies are recorded here.

BUDGET FUNCTION 400: TRANSPORTATION

The Transportation function focuses on aid and regulation for ground transportation, including roads and highways, railroads, and urban mass transit; air transportation, including aeronautical research conducted by NASA; and maritime commerce. The major agencies included in this function are the Department of Transportation, including the Federal Aviation Administration, the Federal Highway Administration, the Federal Transit Administration, and the Maritime Administration; the Department of Homeland Security, including the Transportation Security Administration, the U.S. Coast Guard, and the Federal Air Marshal Service; and the National Railroad Passenger Corporation.

BUDGET FUNCTION 450: COMMUNITY AND REGIONAL DEVELOPMENT

The Community and Regional Development function includes federal programs to improve community economic conditions, promote rural development, and assist in federal preparations for, and responses to, disasters. This function provides appropriated funding for the Community Development Block Grant program, Department of Agriculture rural development programs, the Bureau of Indian Affairs, the Federal Emergency Management Agency, and other disaster mitigation and community development-related programs. It also provides mandatory funding for the federal flood insurance program.

BUDGET FUNCTION 500: EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES
The Education, Training, Employment, and Social Services function includes funding for the Department of Education, some social services programs within the Department of Health and Human Services, and employment and training programs within the Department of Labor.

BUDGET FUNCTION 550: HEALTH

The Health function contains spending on a variety of health care services administered by the Department of Health and Human Services. Specifically, the function includes health research overseen by the National Institutes of Health; public health and safety programs administered by the Centers for Disease Control and Prevention; primary health care services provided by the Health Resources and Services Administration; health insurance for federal employees administered by the Office of Personnel Management; and the regulation of pharmaceuticals, medical devices, and food products conducted by the Food and Drug Administration. The most significant drivers of spending in this function are Medicaid and the exchange subsidies created in the Patient Protection and Affordable Care Act—commonly known as Obamacare.

BUDGET FUNCTION 570: MEDICARE

The Medicare function includes only the Medicare program, which provides health insurance to senior citizens and certain persons with disabilities. Nearly 99% of spending in this function occurs on the mandatory side of the budget, and almost all of the mandatory spending consists of payments for Medicare benefits. The balance of spending is discretionary annual appropriations covering the cost of administering and monitoring the Medicare program.

BUDGET FUNCTION 600: INCOME SECURITY

The Income Security function covers a range of income security programs that provide cash or near-cash assistance to low-income persons and benefits to certain retirees, persons with disabilities, and the unemployed.

BUDGET FUNCTION 650: SOCIAL SECURITY

The Social Security function consists of the payroll-tax-financed programs collectively known as Social Security: Old-Age and Survivors Insurance and Disability Insurance. These programs provide monthly cash benefits to approximately 61 million retired and disabled workers and their spouses, dependents, and survivors. This function includes both benefit payments and funds to administer the programs and ensure program integrity.

BUDGET FUNCTION 700: VETERANS' BENEFITS AND SERVICES

The Veterans' Benefits and Services function includes health administration and health services for veterans (majority of the discretionary spending), their pensions and disability compensation (majority of the mandatory spending), and other services our nation provides to veterans.

BUDGET FUNCTION 750: ADMINISTRATION OF JUSTICE

The Administration of Justice function includes programs to ensure civil rights protections and provide judicial services, police protection, law enforcement, rehabilitation and incarceration of criminals, and the general maintenance of domestic order.

BUDGET FUNCTION 800: GENERAL GOVERNMENT

The General Government function includes the activities of the White House and the Executive Office of the President, the legislative branch, and programs to carry out the administrative responsibilities of the federal government, including personnel management, fiscal operations, and property control.

BUDGET FUNCTION 900: NET INTEREST

The Net Interest function contains the interest paid to private and foreign government holders of U.S. Treasury securities. This function includes interest on the public debt less the interest received by the federal government from trust fund investments and loans to the public. It contains mandatory payments, with no discretionary components.

BUDGET FUNCTION 920: ALLOWANCES

The Allowances function displays the budgetary effects of proposals that cannot be easily distributed across other budget functions.