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What is Entitlement Spending?

In FY 2024, total government spending on pensions, health care and welfare was “guesstimated” to be $5.08 trillion. Guesstimated entitlement spending for FY 2025 is $5.70 trillion.

Total Entitlement Spending Analysis  

 

This page shows the current trends in US total entitlement spending. Also see charts on US entitlement spending history.

Recent US Total Entitlement Spending

Recent Total Entitlement Spending

Chart S.51t: Recent Total Entitlement Spending

Total Entitlement Spending increased strongly, year on year, in the late 2000s, driven by increased spending for welfare in the Great Recession of 2008-09, but then saw a few years of minimal increase as welfare decreased during the early years of the recovery. Entitlement spending spiked during the COVID years.

Total entitlement spending for 2024 was $5.08 trillion.

Recent Total Entitlm'ts as Pct GDP

Chart S.52t: Recent Total Entitlm'ts as Pct GDP

Viewed from a GDP perspective, total entitlement spending rocketed from 14.4 percent GDP in 2007 to 18.4 percent GDP in 2010 in response to the Great Recession. But in the subsequent economic recovery total entitlement spending steadied and remained below 17.5 percent GDP in the late 2010s. Total entitlement spending spiked in the COVID years but then resumed a slow decline as a percent of GDP.

Total entitlement spending for 2024 was 17.3 percent GDP.

Total Entitlement Spending Since 1930

Total Entitlements since 1930

Chart S.53t: Total Entitlements since 1930

Total Entitlements as Share of Total

Chart S.54t: Total Entitlements as Share of Total

In 1900 there was no entitlement spending, except a small amount of health care spending. But the Great Depression ended that, with welfare spending to ease unemployment peaking at 2 percent GDP in 1939.

After World War II pension spending -- mostly Social Security -- surged, reaching 2.6 percent of GDP in 1961 and then up to 5.82 percent of GDP in 1982. During the 1980s, 1990s, and 2010s pension spending grew slowly, but jumped to 6.5 percent of GDP in the recession year of 2009.

Starting with the enactment of Medicare and Medicaid in 1965 health care spending has ballooned from 1 percent of GDP in 1960 to 8.2 percent of GDP in the late 2010s.

After World War II welfare spending grew from war-time lows, eventually fluctuating between 2 percent GDP in good times and 3 to 4 percent in the aftermath of recessions.

As a share of government spending, entitlement spending has come to amount to about half of total government spending.

Before 1930 there were no appreciable entitlement programs. But in the Great Depression welfare ranged between 1 and 2 percent of GDP, while health care spending came in at under 1 percent GDP.

After World War II pensions and health care spending steadily increased as a share of government spending. In the 2010s, with total spending at 35 percent GDP, pensions and health care spending amounted to nearly half of government spending, at about 15 percent GDP.

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Spending Data Sources

Spending data is from official government sources.

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

Detailed table of spending data sources here.
Medicare breakdown here; Medicaid breakdown here.

Federal spending data begins in 1792.

State and local spending data begins in 1820.

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

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Data Sources for 2020_2029:

Sources for 2020:

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

Sources for 2029:

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

> data sources for other years
> data update schedule.

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State and Local Finances for 2023

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

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

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

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

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

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

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

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

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

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