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What is Entitlement Spending?

In FY 2025, total government spending on pensions, health care and welfare was “guesstimated” to be $5.79 trillion. Guesstimated entitlement spending for FY 2026 is $5.97 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 2025 was $5.79 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 2025 was 19.7 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 2021_2029:

Sources for 2021:

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.

Blog

CBO Long Term Budget Outlook for 2025

On March 27, 2025 the Congressional Budget Office released its annual Long Term Budget Outlook for 2025, which projects federal spending and revenue out to 2055.  As before, the data for the CBO study shows that federal health-care programs and interest costs will eat the budget, with federal spending exceeding 25 percent GDP by the 2040s while federal revenue stays a little over 19 percent GDP.

UsGovernmentspending.com has updated its chart of the CBO Long Term Budget Outlook here.  You can download the data and also view CBO Long Term Budget Outlooks going back to 1999.

State FY25 Taxes Update
On November 22, 2025 usgovernmentspending.com updated FY2025 state revenue with quarterly tax data released by the US Ce ...

Gross State Product for 2024
The US Bureau of Economic Analysis (BEA) released its Gross State Product (GSP) data for 2024 on March 29, 2025.Usgovernmen ...

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