Federal Spending by Agency and Budget Function, FY2001-FY2006

Order Code RL33228 Federal Spending by Agency and Budget Function, FY2001-FY2006 Updated December 12, 2006 Philip D. Winters Analyst in Government Finance Government and Finance Division Federal Spending by Agency and Budget Function, FY2001-FY2006 Summary This report provides data on federal spending by agency and by budget function for FY2001 through FY2006.1 The agency and function data, ranked by size, reveal the concentrated nature of federal spending. In 2006, the four largest agencies (of 51 listed) produced 82% of total outlays, and the six largest (of 19) budget functions produced 84% of total outlays. Most of the spending by the largest agencies and within the largest budget functions is either mandatory spending (such as Social Security, Medicare, and income support), defense spending, or net interest spending on federal debt. Among the largest spending agencies or functions, minor reordering has occurred over the six years of data in this report. Net interest fell as a share of total spending, and in dollars slipped slightly, because of lower interest rates and slow growth in federal debt early in the period (net interest began growing again in 2005). The defense function spending grew as money was added for the war on terror and the wars in Afghanistan and Iraq. For the largest agencies, the Department of Health and Human Services moved from the second spot to the first, replacing the Social Security Administration, as health care costs continued to accelerate. The Department of Defense (military) moved from fourth to third, while the Treasury slipped into fourth (as net interest payments fell). Many of the smaller agencies experienced substantial changes in their ranking, such as Homeland Security, which moved from 15th to 8th , based on its lead role in the war on terror and its funding for hurricane recovery in 2005 and 2006. The concentration of federal spending in broadly popular or necessary activities makes congressional efforts to find and implement large spending reductions difficult. Without a substantial reordering of the public’s priorities, as reflected in the government’s allocation of resources, or a consensus among policy makers to reduce popular spending programs, spending reduction efforts seem destined to remain small. The result is a likely limited effect on overall federal spending or deficit reduction. This report will be updated as new budget data become available. 1 Unless otherwise noted, all years mentioned in this report are fiscal years. Contents Outlays by Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Outlays by Budget Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Changing Rank and Share Over Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Budget Functions as Percentages of GDP . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Notes on the Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 List of Figures Figure 1. Selected Agency Outlays as Percent of Total Outlays, FY2001-FY2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Figure 2. Selected Budget Functions as Percent of Total Outlays, FY2001-FY2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Figure 3. Selected Budget Functions as Percent of GDP, FY2001-FY2006 . . . . . 7 Figure 4. Selected Budget Functions and Total Outlays as Percent of GDP, FY2001-FY2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 List of Tables Table 1. Federal Outlays by Agency in Millions of Dollars, FY2001-FY2006, Ranked by Outlays in FY2006 . . . . . . . . . . . . . . . . . . . . . 9 Table 2. Federal Outlays by Agency in Percent of Total Outlays, FY2001-FY2006, Ranked by Outlays in FY2006 . . . . . . . . . . . . . . . . . . . . 10 Table 3. Federal Outlays by Budget Function in Millions of Dollars, FY2001-FY2006, Ranked by Outlays in FY2006 . . . . . . . . . . . . . . . . . . . . 11 Table 4. Federal Outlays by Budget Function in Percent of Total Outlays, FY2001-FY2006, Ranked by Outlays in FY2006 . . . . . . . . . . . . . . . . . . . . 11 Table 5. Federal Outlays by Budget Function in Percent of GDP, FY2001-FY2006, Ranked by Percent of GDP in FY2006 . . . . . . . . . . . . . 12 Federal Spending by Agency and Budget Function, FY2001-FY2006 The federal budget is a large and often confusing compilation of facts, proposals, estimates, and expectations. This report compiles a portion of the extensive budget information available to focus on the high degree of concentration of federal spending within a relatively few areas or agencies. Total federal spending has grown greatly over the last 21 years, from $946.4 billion in FY1985 to $2,654.9 billion in FY2006,2 in current dollars. In constant (FY2000) dollars, outlays grew from $1,395.7 billion in 1985 to $2,313.6 billion in 2006 (est). As a percentage of gross domestic product (GDP), outlays have declined from 22.9% of GDP in 1985 (a year of recession) to 20.3% of GDP in 2006. In between, outlays fell to 18.4% of GDP in FY2000 (a year of rapid economic growth) before climbing to the 2006 level. The government spends this money on an immense number of activities through a large number of federal agencies. To provide some sense of what this money is spent on and in what amounts, this report ranks federal spending by federal agency and by the Office of Management and Budget’s (OMB’s) 19 budget functions (which OMB uses to characterize spending by broad categories) for the years 2001 through 2006. The data are arranged by size, from largest to smallest. For agencies and budget functions, the data are shown in dollars and as percentages of total spending. For budget functions, the data are also shown as percentages of gross domestic product (GDP). The data are from the Budget of the United States Government for Fiscal Year 2007, from the OMB, and from the Final Monthly Treasury Statements for various years from the Treasury. The data clearly show two general patterns to federal spending. The first is that most federal spending is, and has been over this period, concentrated in a limited number of agencies and in about a third of the budget functions. The second pattern is that, except for a handful of agencies (usually smaller ones), the relative rank of the various spending categories has changed relatively modestly and slowly over the six years. The combination of these two patterns indicates that the distribution of federal spending, although always in some flux, has been fairly stable over these years. One other observation related to the concentration of federal spending is worth noting. Other than defense spending, the spending of the largest agencies or budget functions is mostly composed of mandatory or required spending, such as Social Security, Medicare, Medicaid, federal civilian and military retirement programs, and 2 Unless otherwise noted, all years mentioned in this report are fiscal years. CRS-2 interest on the debt. OMB’s short definition of mandatory spending states that, “[m]andatory and related programs include direct spending and offsetting receipts whose budget authority is provided by law other than appropriations acts.”3 This puts somewhere between 60% and 70% of total federal spending outside the annual appropriations debate. Even the 30% to 40% of the budget that is subject to annual appropriations is not completely discretionary. Much of the annual appropriated amounts are necessary to fulfill legal commitments that the government had entered into in previous time periods, such as contracts or other obligations. Unless Congress and the President are willing to eliminate programs and the payroll costs for federal employees that run them, a certain amount of the annual appropriations is needed for federal salaries. In addition, approximately half of the annual appropriated amount goes to defense spending, an activity that is difficult to reduce during a time of war. In effect, much less than the 30% to 40% of the budget considered discretionary can be reduced through appropriations alone. Tables 1 and 2 rank federal spending by agency, including spending for the legislative and judicial branches, by amount spent in FY2006, from largest to smallest. The Other Independent Agency category in the tables combines the outlays of a multitude of relatively small agencies. The International Assistance Program is a collection of activities not included in a specific agency. Table 1 contains outlays in millions of dollars and Table 2 shows the agencies by their percentages of total outlays. In 2006, for example, the National Science Foundation ranked 25th, had outlays of $5.5 billion, and accounted for 0.2089% of total outlays. Tables 3 and 4 duplicate Tables 1 and 2 respectively but are ranked by the 19 federal budget functions instead of departments and agencies. As with the departments and agencies, the functions are arranged in descending order by amount spent in 2006. The Natural Resources and Environment budget function in 2006, for example, had outlays of $33.1 billion, which were 1.2% of total outlays, and ranked 12th out of the 19 budget functions. In addition, Table 5 shows the budget functions by their share of GDP. The Natural Resources and Environment budget function used 0.27% of GDP in 2006 (in 2006, total outlays were 20.33% of GDP). Outlays by Agency Tables 1 and 2 contain 2001 through 2006 outlays listed by the largest amount spent by an agency, the Department of Health and Human Services (HHS), to the smallest amount spent by an agency, the General Services Administration, and on to those agencies with negative outlays (in which the agency’s outlays are offset by collections credited to the agency — see footnote 5). This ordering of federal spending clearly shows the persistent concentration of federal spending in a few agencies. 3 OMB. Budget Of the United States Government for Fiscal Year 2006. February 2005. Historical Tables. p. 15. CRS-3 When combined, the four largest departments and agencies — HHS, the Social Security Administration (SSA), Defense(DOD), and the Treasury — spent $2,136 billion, or 81.5% of the total outlays in 2006.4 The smallest of these four, the Treasury ($464.3 billion), spent almost five times as much as the Department of Agriculture ($95.4 billion), which ranks right below the Treasury in spending. The department spending the most, HHS ($614.3 billion), spent 10 times what the tenth largest, the Department of Transportation ($60.1 billion), spent in 2006. The two largest, HHS and SSA, each spent over 22% of total outlays in 2006. The DOD almost reached 19% of total outlays in 2006. The Treasury spent 17.5% of total outlays. The next department in order, Agriculture, spent 3.5% of total outlays, showing the large gulf between the four largest agencies and all others in the amounts spent. The next 14 departments or agencies in the table spent over $10 billion but less than $100 billion in 2006.5 Their combined spending was $663.4 billion (25.0% of total outlays). The 11 departments and agencies spending more than $1 billion but less than $10 billion (including the Judicial and Legislative Branches), produced total outlays of $63.9 billion and 2.4% of total outlays in 2006. These 11 combined spent slightly more than the Office of Personnel Management alone (ranked ninth in the list). The final group of agencies with positive outlays, a group of 16, each spent less than $1.0 billion. This group’s combined outlays were only $6.5 billion and just 0.24% of total outlays in 2006. The amount spent by these 16 for FY2006 was a little more than the amount spent by the Department of Commerce ($6.4 billion) and approximately what HHS spent, on average, in just under four days. The sum of the percentages of total outlays spent by the agencies with positive outlays equals 109.2% of total outlays for 2006. The remaining six agencies with negative outlays (also called offsetting outlays or offsetting receipts) plus the negative outlays from the undistributed offsetting receipts category, produced $243.1 billion in outlay offsets (-9.2% of total outlays). Adding these offsetting outlays to total (positive) outlays produces total net outlays for 2006 of $2,654.9 billion.6 4 Some of the money spent by SSA, Treasury, HHS, Defense, and the other departments and agencies includes internal payments within the government itself. To avoid counting these internal payments in total outlays (which represent government expenditures to the public), they are offset either against the spending of the government recipient or are subtracted from outlays through the undistributed offsetting receipts category, (a negative outlay amount found at the bottom of the list in each table). The Treasury is somewhat of a special case. Without the inclusion of total interest payments on federal debt in its totals, its outlays drop in 2006 from $464 billion to $58 billion (and 2.2% of total outlays). Adding the net interest portion of total interest to this non-interest portion of Treasury outlays produces modified 2006 Treasury spending of $285 billion (10.7% of total outlays), an amount substantially larger than the next largest agency, the Department of Agriculture. 5 Negative outlays, usually as offsetting receipts, keep the totals from exceeding 100% of total outlays. See footnote 5. 6 Negative outlays or offsetting receipts generally refer to collections by one agency from (continued...) CRS-4 Outlays by Budget Function As mentioned earlier, Tables 3 and 4 list the budget functions ranked in descending order of outlays for 2006 for the six fiscal years, 2001 through 2006. The data in these tables make a similar point to those in Tables 1 and 2: the bulk of federal outlays are concentrated in a relatively few large functions. Although not showing quite the same concentration as the agency listing, the six largest budget functions — out of 19 — account for 84.4% of total outlays. These six functions include the major mandatory spending programs of the federal government plus defense and net interest spending. Substantially increased spending within the community and regional development function resulting from federal hurricane recovery efforts, reduced slightly the concentration of federal spending in the largest six functions in FY2006. In 2005, the six largest functions contained 85.2% of total spending, which fell to 84.4% of total spending in 2006. The smallest of the six largest budget functions, net interest, produced over 8.5% of total outlays in 2006 (and its share is expected to keep rising) while the seventh largest function in the list — education, training, employment, and social services — produced almost 4.5% of total outlays. Three other of the remaining budget functions individually produced more than 2% of total outlays. The 12 smaller budget functions (excluding offsetting receipts), generated 18% of total outlays in 2006, and funded all other federal activities. The six largest functions use such a large share of total spending that even if they were reduced by the amount of the undistributed offsetting receipts (which in the budget function listing is mostly federal agency payments of the employer share of federal employee retirement), they would still account for almost 82% of total outlays.7 Total federal outlays were 20.3% of GDP in 2006. The largest budget function, Social Security, was 4.2% of GDP. As with their share of total outlays, the six largest functions accounted for most of federal spending as a share of GDP by a substantial amount. The largest six combined were 17.2% of GDP in 2006; the remaining 12 functions with positive outlays made up 3.7% of GDP in that year. Undistributed offsetting receipts were -0.5% of GDP. Table 5 shows the budget functions as percentages of GDP for each of the six years. 6 (...continued) another agency and collections from the public that have a business-like or market-like nature. These are then credited to appropriation or fund accounts. Offsetting receipts are deposited in receipt accounts, but are used to offset outlays rather than being added to total federal receipts. 7 Undistributed offsetting receipts (UOR) are not defined or measured the same way in the two sets of tables. In Tables 1 and 2 the UOR include almost all of the outlay offsets in the government accounts. Very few are offset against the spending in the departments and agencies. In Tables 3, 4, and 5, many of the offsets are included within the various functions, producing amounts in the functions that are essentially net outlays. The UOR in these three tables represents a relatively small amount of offsets that are not distributed among the functions for various reasons. CRS-5 Changing Rank and Share Over Time Some of the agencies and a few of the budget functions shifted their rank over the 2001 to 2006 period, while many gained or lost share of total outlays or GDP without a change in rank. These changes resulted from policy choices and external forces (such as the war on terrorism and changing economic conditions, respectively) acting on the budget. The four agencies with the Figure 1. Selected Agency Outlays as Percent of Total Outlays, FY2001-FY2006 largest outlays in 2006 were also the four largest in 2001, although As Percent of Total their order changed with HHS 24.8% 24.3% 25% and SSA swapping rank, as did 23.5% 23.7% 23.5% 23.1% DOD and Treasury. Health care 23.4% 23.1% 22.9% 23.2% costs grew faster than Social 22.7% 22.1% 20.8% Security, moving HHS to the top, 20% 19.1% 18.8% while slower federal debt growth 18.0% and lower interest rates early in 19.2% 18.4% the period and higher defense 16.4% 17.5% spending raised DOD (military) 16.6% 16.5% 17.0% above Treasury. 15% 15.6% 12.4% The combined share for the four largest agencies fell from 12.1% 11.5% 84.0% in 2001 to 81.6% in 2006. 10% 11.1% 8.5% The fall in the Treasury’s share of total spending, due to the fall in 8.5% 7.1% net interest outlays, explains 7.4% 7.0% almost all of the decline for these 5% four agencies. A reduction in the SSA’s share contributed to the HHS SSA fall, while growth in the DOD’s Defense-Military Treasury (Medicare) (Net Interest) share more than covered the SSA reduction. The reversal (in 2005) 0% of the four-year fall in net interest 2001 2002 2003 2004 2005 2006 (within the Department of the Treasury), and the expectation that net interest (and gross interest) will continue growing, has increased the chances of higher future concentrations of federal spending in these four agencies. Along with interest payments, Social Security and federal health spending are also expected to rise as shares of total outlays. 11.7% 11.5% 11.7% The outlays of the three largest agencies combined were 63.2% of total outlays in 2001, rising to 64.0% in 2006 (which was down from their peak of 65.9% of total outlays in 2004). These three agencies, HHS, SSA, and DOD, produced almost twothirds of total federal spending over this period. CRS-6 Among the other agencies, increases in Department of Education funding bumped it from the 10th spot in 2001 to the 6th spot in 2006. The Department of Homeland Security (DHS) moved from 15th to 8th place in the list of agencies.8 One of the larger changes in rank moved the Executive Office of the President from 35th place in 2001 to 26th place in 2006. The Executive Office of the President’s responsibility for the Iraq Relief Reconstruction Fund produced most of the rise in its rank. The Small Business Figure 2. Selected Budget Functions as Administration (SBA) shifted Percent of Total Outlays, FY2001-FY2006 from producing offsetting outlays As Percent of Total (negative outlays) in 2001 to 25% positive outlays in 2002 through 23.2% 2006, moving it to 30th place (out 21.6% of 45 departments or agencies 22.7% 21.2% 20.7% 22.0% with positive outlays in 2006). 20% 20.4% The Postal Service went the 19.9% 18.7% 19.9% other way, dropping in the 17.3% rankings from 28th to 49th and 16.4% from having positive outlays in 15.5% 15.5% 2001 to having offsetting outlays 14.5% 15% 14.0% 14.5% 13.3% in 2006 (it first had negative outlays in 2003). 11.7% 11.5% 11.5% 11.7% 12.1% 12.4% The six largest budget functions, Social Security, 10.1% defense, income security, net 9.2% 8.5% 7.1% 7.0% 8.5% interest, Medicare, and health, 7.4% contain almost as much federal spending and most of the same 5% Social Security activities as the top four National Defense Incom e Security agencies. The combined share Medicare for these six budget functions Health Net Interest was 86.1% in 2001 and 84.4% in 0% 2006. Excluding the net interest 2001 2002 2003 2004 2005 2006 function from the top six still produced three-quarters (or more) of total outlays, 75.0% of total outlays in 2001 and 75.8% of total outlays in 2006. The concentration of federal spending can be expected to increase in the near future as the federal programs for the elderly, such as Social Security and Medicare, expand in response to the coming retirement of the baby-boom generation. The expected faster growth in federal debt resulting from persistent deficits, along with higher interest rates, may also raise net interest spending as a share of total outlays. In 2006, spending for hurricane recovery increased spending outside the largest four departments and six functions by enough to drive down their cumulative share of total outlays. 10% 11.1% 8 9.8% 10.2% 10.5% 9.5% OMB adjusts historical budget data to conform to current accounting, including organization changes such as occurred with the creation of the Department of Homeland Security. CRS-7 Like the agency list, the largest budget functions show little change in rank over the period. The four largest budget functions held their rank throughout the five years. The fifth and sixth ranked budget functions, health and net interest, exchanged positions, health moving to number five and net interest falling to number six. The share of total outlays going to the national defense function, as one might expect, increased over the five years, growing from 16.4% in 2001 to 19.9% in 2006 (the defense function reached 20.4% of total outlays in 2005). See Table 4 for a listing of the 19 budget functions showing their share of total outlays for the years 2001 through 2006. Budget Functions as Percentages of GDP As percentages of GDP (see Table 5), total outlays have increased since 2001, rising from 18.5% to 20.3% in 2006. In other words, federal spending has grown faster than the economy over these Figure 3. Selected Budget Functions as six years. Its growth in 2006 in relation to GDP was smaller than Percent of GDP, FY2001-FY2006 most of the other years in the As Percent of GDP 4.5% period. Of the overall increase, 4.26% 4.19% national defense increased its 4.39% 4.39% 4.30% 4.29% share by 1.0% of GDP. Increases 4.0% 4.09% 4.03% 3.75% in the shares of three other 3.95% functions (Medicare; health; and 3.5% 3.36% education, training, employment, and social services) produced 3.10% 3.03% much of the remaining increase in 3.0% 2.82% 3.01% 2.70% total outlays as a percentage of 2.88% GDP. Net interest lost 0.3% of its 2.68% 2.43% 2.5% 2.33% 2.31% 2.52% share of GDP over the period. 2.22% 2.16% Figure 3 shows the six largest 2.04% budget functions as percentages of 1.93% 1.89% 2.0% 2.03% 2.08% 2.05% GDP for the years 2001 through 1.65% 1.73% 2006 (their cumulative share of 1.71% 1.39% 1.5% GDP was 15.9% in 2001 and 1.50% 1.42% 17.1% in 2006). The changes, for the most part, occurred over a 1.0% Social Security limited range. None of the National Defense functions changed its share of Incom e Security 0.5% Medicare GDP by more than 1% (the Health National defense function Net Interest increased its share by exactly 1%). 0.0% Most of the functions had changes 2001 2002 2003 2004 2005 2006 of less than 0.4% of GDP, many much less. Changing the scale in Figure 3 to show total outlays over the period (i.e., extending the vertical axis to 21% of GDP) makes the visual changes in most of the six functions look relatively flat. (This is illustrated in Figure 4.) CRS-8 During the six years, the individual functions showed varied patterns of change. Defense spending grew rapidly in the early years of the period (from historically low levels) as the funding for the war on terror grew, but leveled off in 2005 and 2006. Income security rose from 2.7% Figure 4. Selected Budget Functions and of GDP in 2001 to 3.1% of GDP Total Outlays as Percent of GDP, in 2003, before falling back to FY2001-FY2006 2.7% of GDP in 2006. Funding As Percent of GDP in this function increased with the economic sluggishness in the 20% early years of the decade. Net interest fell from 2.0% of GDP in 2001 to 1.4% of GDP in 2003 and 2004 before rising to 1.7% of GDP in 2006 (a trend that is 15% likely to continue and may accelerate). The slow growth in federal debt and low interest Total rates in the early 2000s reduced Social Security the share of GDP used for net National Defense 10% Incom e Security interest. Medicare continued its Medicare fairly steady increase as a share Health of GDP. Although Social Net Interest Security fell slightly as a share of GDP over these years, this trend is unlikely to continue for long. 5% The coming retirement of the baby boom generation beginning early in the next decade will increase (under current policy) spending for Social Security at a 0% rate fast enough to increase its 2001 2002 2003 2004 2005 2006 share of total spending. CRS-9 Table 1. Federal Outlays by Agency in Millions of Dollars, FY2001-FY2006, Ranked by Outlays in FY2006 Agency 2001 2002 1 Dept. Of Health And Human Services . . . . 426,311 465,812 (Medicare) . . . . . . . . . . . . . . . . . . . . 217,384 230,855 2 Social Security Administration . . . . . . . . . . 461,264 487,827 3 Department Of Defense — Military . . . . . . 290,340 331,951 4 Department Of The Treasury . . . . . . . . . . . 386,906 370,558 (Net Interest) . . . . . . . . . . . . . . . . . . 206,167 170,949 5 Department Of Agriculture . . . . . . . . . . . . . 68,001 68,738 6 Department Of Education . . . . . . . . . . . . . . 35,721 46,282 7 Department Of Veterans Affairs . . . . . . . . . 45,050 50,884 8 Department Of Homeland Security . . . . . . 15,025 17,557 9 Office Of Personnel Management . . . . . . . 50,914 52,512 10 Department Of Transportation . . . . . . . . . . 49,282 56,024 11 Other Defense Civil Programs . . . . . . . . . . 34,164 35,157 12 Department Of Labor . . . . . . . . . . . . . . . . . 39,755 64,704 13 Dept Of Housing And Urban Development 33,939 31,876 14 Department Of Justice . . . . . . . . . . . . . . . . 18,695 21,112 15 Department Of Energy . . . . . . . . . . . . . . . . 16,340 17,681 16 National Aeronautics And Space Adm. . . . 14,095 14,430 17 International Assistance Program . . . . . . . . 11,777 13,336 18 Department Of State . . . . . . . . . . . . . . . . . . 7,444 9,453 19 Department Of The Interior . . . . . . . . . . . . 7,868 9,739 20 Environmental Protection Agency . . . . . . . 7,391 7,450 21 Corps Of Engineers . . . . . . . . . . . . . . . . . . 4,726 4,797 22 Federal Communications Commission . . . . 4,098 5,202 23 Department Of Commerce . . . . . . . . . . . . . 5,010 5,314 24 Judicial Branch . . . . . . . . . . . . . . . . . . . . . . 4,405 4,823 25 National Science Foundation . . . . . . . . . . . 3,690 4,188 26 Executive Office Of The President . . . . . . . 246 451 27 Legislative Branch . . . . . . . . . . . . . . . . . . . 3,035 3,219 28 Railroad Retirement Board . . . . . . . . . . . . . 5,541 5,425 29 Other Independent Agencies . . . . . . . . . . . 1,041 1,256 30 Small Business Administration . . . . . . . . . -570 493 31 Corp. For National And Community Serv. 757 793 32 Smithsonian Institution . . . . . . . . . . . . . . . 561 616 33 District Of Columbia . . . . . . . . . . . . . . . . . 539 927 34 Broadcasting Board Of Governors . . . . . . . 429 484 35 Corporation For Public Broadcasting . . . . . 360 375 36 Federal Drug Control Programs . . . . . . . . . 340 467 37 Legal Services Corporation . . . . . . . . . . . . 320 333 38 National Archives And Records Adm. . . . . 217 268 39 Equal Employment Opportunity Comm. . . 289 324 40 National Labor Relations Board . . . . . . . . . 220 230 41 Institute Of Museum And Library Serv. . . . 196 219 42 National Endowment For The Humanities 119 120 43 National Endowment For The Arts . . . . . . 104 107 44 Nuclear Regulatory Commission . . . . . . . . 31 40 45 General Services Administration . . . . . . . . -269 -271 46 National Credit Union Administration . . . . -202 -623 47 Tennessee Valley Authority . . . . . . . . . . . . -662 124 48 Federal Deposit Insurance Corporation . . . -1,220 -353 49 Postal Service . . . . . . . . . . . . . . . . . . . . . . . 2,395 207 50 Securities And Exchange Commission . . . . -330 -536 51 Export-Import Bank Of The U.S. . . . . . . . . -1,749 -140 52 Undistributed Offsetting Receipts . . . . . . . -190,948 -201,124 Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,863,190 2,011,153 (See table notes at the end of report.) 2003 505,345 249,433 507,734 388,870 366,987 153,073 72,374 57,400 56,891 31,967 54,135 50,807 39,883 69,593 37,474 21,539 19,385 14,552 13,463 9,261 9,210 8,061 4,751 8,800 5,676 5,123 4,736 387 3,427 3,056 1,649 1,558 839 614 781 517 411 620 336 301 315 231 249 119 112 48 323 -572 267 -793 -5,169 -532 -3,248 -210,446 2004 543,389 269,360 530,205 437,116 375,360 160,245 71,769 62,819 59,554 26,537 56,535 54,548 41,730 56,706 45,019 28,954 19,972 15,189 13,737 10,934 8,936 8,334 4,838 3,848 5,850 5,392 5,118 3,308 3,885 2,792 2,563 4,075 765 782 805 653 437 429 335 307 324 242 207 127 120 71 -404 -351 -413 -1,554 -4,070 -685 -1,902 -212,522 2005 581,463 298,638 561,333 474,374 410,726 183,905 85,333 72,857 69,844 38,717 59,500 56,597 43,484 46,943 42,448 22,366 21,274 15,600 15,034 12,754 9,288 7,911 4,720 7,546 6,147 5,543 5,432 7,689 3,995 2,123 3,448 2,503 793 739 659 640 466 409 332 321 320 245 250 136 124 110 17 -339 -205 -874 -1,223 -799 -801 -226,210 2006 614,318 329,867 585,742 499,355 464,267 226,631 93,534 93,427 69,808 69,100 62,400 60,141 44,435 43,139 42,434 23,320 19,652 15,125 13,914 12,957 9,063 8,322 6,946 6,922 6,374 5,820 5,546 5,378 4,129 3,368 2,019 905 842 795 671 634 460 401 327 321 320 248 238 138 121 57 22 -279 -380 -677 -971 -1,033 -2,191 -237,546 2,160,117 2,293,006 2,471647 2,654,877 CRS-10 Table 2. Federal Outlays by Agency in Percent of Total Outlays, FY2001-FY2006, Ranked by Outlays in FY2006 Agency 2001 2002 2003 2004 2005 2006 1 Dept. Of Health And Human Services . . . . 22.8807%23.1614%23.3943%23.6977%23.5211%23.1436% (Medicare) . . . . . . . . . . . . . . . . . . . . 11.6673 11.4787 11.5472 11.7470 12.0804 12.4273 2 Social Security Administration . . . . . . . . . . 24.7567 24.2561 23.5049 23.1227 22.7068 22.0670 3 Department Of Defense — Military . . . . . . 15.5830 16.5055 18.0023 19.0630 19.1891 18.8125 4 Department Of The Treasury . . . . . . . . . . . 20.7658 18.4252 16.9892 16.3698 16.6145 17.4906 (Net Interest) . . . . . . . . . . . . . . . . . . 11.0653 8.5000 7.0863 6.9884 7.4392 8.5380 5 Department Of Agriculture . . . . . . . . . . . . . 3.6497 3.4178 3.3505 3.1299 3.4518 3.5238 6 Department Of Education . . . . . . . . . . . . . . 1.9172 2.3013 2.6573 2.7396 2.9472 3.5197 7 Department Of Veterans Affairs . . . . . . . . . 2.4179 2.5301 2.6337 2.5972 2.8253 2.6299 8 Department Of Homeland Security . . . . . . 0.8064 0.8730 1.4799 1.1573 1.5662 2.6032 9 Office Of Personnel Management . . . . . . . 2.7326 2.6110 2.5061 2.4655 2.4069 2.3508 10 Department Of Transportation . . . . . . . . . . 2.6450 2.7857 2.3520 2.3789 2.2894 2.2657 11 Other Defense Civil Programs . . . . . . . . . . 1.8336 1.7481 1.8463 1.8199 1.7590 1.6740 12 Department Of Labor . . . . . . . . . . . . . . . . . 2.1337 3.2173 3.2217 2.4730 1.8989 1.6252 13 Dept. Of Housing And Urban Development 1.8216 1.5850 1.7348 1.9633 1.7171 1.5986 14 Department Of Justice . . . . . . . . . . . . . . . . 1.0034 1.0497 0.9971 1.2627 0.9047 0.8785 15 Department Of Energy . . . . . . . . . . . . . . . . 0.8770 0.8791 0.8974 0.8710 0.8606 0.7404 16 National Aeronautics And Space Adm. . . . 0.7565 0.7175 0.6737 0.6624 0.6310 0.5698 17 International Assistance Program . . . . . . . . 0.6321 0.6631 0.6233 0.5991 0.6081 0.5242 18 Department Of State . . . . . . . . . . . . . . . . . . 0.3995 0.4700 0.4287 0.4768 0.5159 0.4881 19 Department Of The Interior . . . . . . . . . . . . 0.4223 0.4842 0.4264 0.3897 0.3757 0.3414 20 Environmental Protection Agency . . . . . . . 0.3967 0.3704 0.3732 0.3635 0.3200 0.3135 21 Corps Of Engineers . . . . . . . . . . . . . . . . . . 0.2537 0.2385 0.2199 0.2110 0.1909 0.2617 22 Federal Communications Commission . . . . 0.2199 0.2587 0.4074 0.1678 0.3052 0.2608 23 Department Of Commerce . . . . . . . . . . . . . 0.2689 0.2642 0.2628 0.2551 0.2487 0.2401 24 Judicial Branch . . . . . . . . . . . . . . . . . . . . . . 0.2364 0.2398 0.2372 0.2351 0.2242 0.2193 25 National Science Foundation . . . . . . . . . . . 0.1980 0.2082 0.2192 0.2232 0.2197 0.2089 26 Executive Office Of The President . . . . . . . 0.0132 0.0224 0.0179 0.1443 0.3110 0.2026 27 Legislative Branch . . . . . . . . . . . . . . . . . . . 0.1629 0.1601 0.1586 0.1694 0.1616 0.1556 28 Railroad Retirement Board . . . . . . . . . . . . . 0.2974 0.2697 0.1415 0.1218 0.0859 0.1269 29 Other Independent Agencies . . . . . . . . . . . 0.0559 0.0625 0.0763 0.1118 0.1395 0.0761 30 Small Business Administration . . . . . . . . . -0.0306 0.0245 0.0721 0.1777 0.1013 0.0341 31 Corp. For National And Community Serv. 0.0406 0.0394 0.0388 0.0334 0.0321 0.0317 32 Smithsonian Institution . . . . . . . . . . . . . . . 0.0301 0.0306 0.0284 0.0341 0.0299 0.0300 33 District Of Columbia . . . . . . . . . . . . . . . . . 0.0289 0.0461 0.0362 0.0351 0.0267 0.0253 34 Broadcasting Board Of Governors . . . . . . . 0.0230 0.0241 0.0239 0.0285 0.0259 0.0239 35 Corporation For Public Broadcasting . . . . . 0.0193 0.0186 0.0190 0.0191 0.0189 0.0173 36 Federal Drug Control Programs . . . . . . . . . 0.0182 0.0232 0.0287 0.0187 0.0165 0.0151 37 Legal Services Corporation . . . . . . . . . . . . 0.0172 0.0166 0.0156 0.0146 0.0134 0.0123 38 National Archives And Records Adm. . . . . 0.0116 0.0133 0.0139 0.0134 0.0130 0.0121 39 Equal Employment Opportunity Comm. . . 0.0155 0.0161 0.0146 0.0141 0.0129 0.0121 40 National Labor Relations Board . . . . . . . . . 0.0118 0.0114 0.0107 0.0106 0.0099 0.0093 41 Institute Of Museum And Library Services 0.0105 0.0109 0.0115 0.0090 0.0101 0.0090 42 National Endowment For The Humanities 0.0064 0.0060 0.0055 0.0055 0.0055 0.0052 43 National Endowment For The Arts . . . . . . 0.0056 0.0053 0.0052 0.0052 0.0050 0.0046 44 Nuclear Regulatory Commission . . . . . . . . 0.0017 0.0020 0.0022 0.0031 0.0044 0.0021 45 General Services Administration . . . . . . . . -0.0144 -0.0135 0.0150 -0.0176 0.0007 0.0008 46 National Credit Union Administration . . . . -0.0108 -0.0310 -0.0265 -0.0153 -0.0137 -0.0105 47 Tennessee Valley Authority . . . . . . . . . . . . -0.0355 0.0062 0.0124 -0.0180 -0.0083 -0.0143 48 Federal Deposit Insurance Corporation . . . -0.0655 -0.0176 -0.0367 -0.0678 -0.0354 -0.0255 49 Postal Service . . . . . . . . . . . . . . . . . . . . . . . 0.1285 0.0103 -0.2393 -0.1775 -0.0495 -0.0366 50 Securities And Exchange Commission . . . . -0.0177 -0.0267 -0.0246 -0.0299 -0.0323 -0.0389 51 Export-Import Bank Of The United States -0.0939 -0.0070 -0.1504 -0.0829 -0.0324 -0.0825 52 Undistributed Offsetting Receipts . . . . . . . -10.2484 -10.0004 -9.7423 -9.2683 -9.1505 -8.9492 Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% (See table notes at the end of report.) CRS-11 Table 3. Federal Outlays by Budget Function in Millions of Dollars, FY2001-FY2006, Ranked by Outlays in FY2006 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Function Social Security . . . . . . . . . . . . . . . . . . . . National Defense . . . . . . . . . . . . . . . . . . Income Security . . . . . . . . . . . . . . . . . . . Medicare . . . . . . . . . . . . . . . . . . . . . . . . . Health . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Interest . . . . . . . . . . . . . . . . . . . . . . . Ed., Training, Empl. and Social Services Transportation . . . . . . . . . . . . . . . . . . . . Veterans Benefits And Services . . . . . . . Community And Regional Development Administration Of Justice . . . . . . . . . . . . Natural Resources And Environment . . . International Affairs . . . . . . . . . . . . . . . . Agriculture . . . . . . . . . . . . . . . . . . . . . . . General Science, Space, And Technology General Government . . . . . . . . . . . . . . . Commerce And Housing Credit . . . . . . . Energy . . . . . . . . . . . . . . . . . . . . . . . . . . Undistributed Offsetting Receipts . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2001 432,958 304,880 269,774 217,384 172,270 206,167 57,143 54,447 45,039 11,773 30,202 25,623 16,493 26,253 19,784 14,263 5,739 9 -47,011 2002 455,980 348,555 312,720 230,855 196,544 170,949 70,544 61,833 50,984 12,981 35,061 29,454 22,351 21,966 20,767 16,925 -399 475 -47,392 2003 474,680 404,920 334,632 249,433 219,576 153,073 82,568 67,069 57,022 18,850 35,340 29,703 21,209 22,497 20,873 23,054 735 -735 -54,382 2004 495,548 455,908 333,059 269,360 240,134 160,245 87,948 64,627 59,779 15,822 45,576 30,725 26,891 15,440 23,053 22,321 5,273 -166 -58,537 2005 523,333 503,155 346,785 298,638 250,420 183,905 95,889 68,102 70,150 25,268 34,508 28,174 34,330 28,421 20,468 17,459 7,460 406 -65,223 2006 548,573 528,811 353,701 329,867 252,609 226,631 116,472 70,801 69,843 53,925 35,503 33,062 29,491 27,907 20,218 18,871 6,085 755 -68,249 1,863,190 2,011,153 2,160,117 2,293,006 2,471,647 2,654,878 (See table notes at the end of report.) Table 4. Federal Outlays by Budget Function in Percent of Total Outlays, FY2001-FY2006, Ranked by Outlays in FY2006 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Function 2001 2002 2003 2004 2005 2006 Social Security . . . . . . . . . . . . . . . . . . . . . . . . . .23.237% 22.673%21.975% 21.611%21.173% 20.663% National Defense . . . . . . . . . . . . . . . . . . . . . . . .16.363 17.331 18.745 19.883 20.357 19.918 Income Security . . . . . . . . . . . . . . . . . . . . . . . . .14.479 15.549 15.491 14.525 14.031 13.323 Medicare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.667 11.479 11.547 11.747 12.083 12.425 Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.246 9.773 10.165 10.472 10.132 9.515 Net Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.065 8.500 7.086 6.988 7.441 8.536 Ed., Training, Empl. and Social Services . . . . . . 3.067 3.508 3.822 3.835 3.880 4.387 Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . 2.922 3.075 3.105 2.818 2.755 2.667 Veterans Benefits And Services . . . . . . . . . . . . . 2.417 2.535 2.640 2.607 2.838 2.631 Community And Regional Development . . . . . . 0.632 0.645 0.873 0.690 1.022 2.031 Administration Of Justice . . . . . . . . . . . . . . . . . . 1.621 1.743 1.636 1.988 1.396 1.337 Natural Resources And Environment . . . . . . . . . 1.375 1.465 1.375 1.340 1.140 1.245 International Affairs . . . . . . . . . . . . . . . . . . . . . . 0.885 1.111 0.982 1.173 1.389 1.111 Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.409 1.092 1.041 0.673 1.150 1.051 General Science, Space, And Technology . . . . . 1.062 1.033 0.966 1.005 0.828 0.762 General Government . . . . . . . . . . . . . . . . . . . . . 0.766 0.842 1.067 0.973 0.706 0.711 Commerce And Housing Credit . . . . . . . . . . . . . 0.308 -0.020 0.034 0.230 0.302 0.229 Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.000 0.024 -0.034 -0.007 0.016 0.028 Undistributed Offsetting Receipts . . . . . . . . . . .-2.523 -2.356 -2.518 -2.553 -2.639 -2.571 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100.0 100.0 100.0 100.0 100.0 100.0 (See table notes at the end of report.) CRS-12 Table 5. Federal Outlays by Budget Function in Percent of GDP, FY2001-FY2006, Ranked by Percent of GDP in FY2006 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Function Social Security . . . . . . . . . . . . . . . . . . . . . . . . . . National Defense . . . . . . . . . . . . . . . . . . . . . . . . Income Security . . . . . . . . . . . . . . . . . . . . . . . . . Medicare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ed., Training, Empl. and Social Services . . . . . . Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . Veterans Benefits And Services . . . . . . . . . . . . . Community And Regional Development . . . . . . Administration Of Justice . . . . . . . . . . . . . . . . . . Natural Resources And Environment . . . . . . . . . International Affairs . . . . . . . . . . . . . . . . . . . . . . Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . General Science, Space, And Technology . . . . . General Government . . . . . . . . . . . . . . . . . . . . . Commerce And Housing Credit . . . . . . . . . . . . . Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Undistributed Offsetting Receipts . . . . . . . . . . . 2001 4.305% 3.031 2.682 2.161 1.713 2.050 0.568 0.541 0.448 0.117 0.300 0.255 0.164 0.261 0.197 0.142 0.057 0.000 -0.467 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.525 (See table notes at the end of report.) 2002 4.394% 3.359 3.013 2.225 1.894 1.647 0.680 0.596 0.491 0.125 0.338 0.284 0.215 0.212 0.200 0.163 -0.004 0.005 -0.457 19.380 2003 4.393% 3.747 3.097 2.308 2.032 1.417 0.764 0.621 0.528 0.174 0.327 0.275 0.196 0.208 0.193 0.213 0.007 -0.007 -0.503 19.991 2004 4.292% 3.949 2.885 2.333 2.080 1.388 0.762 0.560 0.518 0.137 0.395 0.266 0.233 0.134 0.200 0.193 0.046 -0.001 -0.507 19.860 2005 4.258% 4.094 2.822 2.430 2.038 1.496 0.780 0.554 0.571 0.206 0.281 0.229 0.279 0.231 0.167 0.142 0.061 0.003 -0.531 20.110 2006 4.200% 4.049 2.708 2.526 1.934 1.735 0.892 0.542 0.535 0.413 0.272 0.253 0.226 0.214 0.155 0.144 0.047 0.006 -0.523 20.327 CRS-13 Notes on the Tables Tables 1 and 2 The negative outlays (shown for several agencies and for offsetting receipts) near the bottom of these two tables generally represent fees, charges, proprietary receipts from the public (such as loan repayments; interest; or sale of property, products, or services), or intra-governmental transactions (such as payments by federal agencies into federal employee retirement accounts, payments from one agency to another, or the intra-governmental payment of interest). The accounts for some agencies may be credited with more income than with outlays, producing negative outlays. The Department of Health and Human Services (HHS) includes Medicare, Medicaid, and other social support programs. Defense (military) includes only military defense programs; civilian defense programs are shown separately. Treasury spending includes total federal interest payments on the public debt and the IRS, as well as other activities.9 The All Other category includes spending for the multitude of agencies with very small budgets. These small agencies include the Advisory Council on Historic Preservation, the United States Institute of Peace, the National Mediation Board, and the Marine Mammal Commission, among numerous others. Tables 3 and 4 The budget functions shown in Tables 3 and 4 are the standard budget functions used in the budget by the Administration and in the congressional budget resolution. The components of the largest budget functions are mostly self — explanatory. Defense is mostly the Department of Defense; Social Security is the Social Security program; Net interest is a measure of federal interest payments to the public; Income security includes unemployment compensation, food and nutrition assistance, and federal civilian and military retirement; Medicare is the Medicare program; and Health includes the Medicaid program, as well as other federal health spending. General The data in this report are from the Budget of the United States Government for Fiscal Year 2007 (February 2006) and the Final Monthly Treasury Statement of Receipts and Outlays of the United States Government for Fiscal Year 2006 (FTMS; September 2006) from the Department of the Treasury. Data for the functional tables 9 The overwhelming part of the billions spent by the Treasury ($464.3 billion in 2006) is spent on interest on the public debt ($405.9 billion in 2006). Of the 17.5% of total outlays coming from the Treasury, 15.3% of total outlays came from gross interest on the public debt. Net interest, shown in all the tables, subtracts from gross interest both the intragovernmental payment of interest and payments of interest by the public to the government. Net interest was $226.6 billion and 8.5% of total outlays in 2006. CRS-14 were taken from the Historical Tables volume of OMB’s 2007 budget documents and the FMTS for 2006. The 2006 function data in this report used revised function data made available in November 2006 by the Treasury . The revised data corrected errors that appeared in the function table (Table 9) published in the FMTS for 2006 (in the September 2006 issue). The revised data included slightly larger total outlays and very slightly smaller total receipts. Outlays were larger by almost $500 million, less than 0.02% of the original total outlays. Receipts were smaller by $6 million, only 0.002% below the original receipt total. The revised outlay total was used to calculate the percentage shares of spending by agency and by function. It had an insignificant effect on the spending by agency as a percentage of total outlays, compared to the original outlay total. Additional detail on the programs within the departments and agencies and the budget functions can be found in the annual budget documents issued by OMB. The data in the tables are internally consistent based on the data from OMB. If the tables in this report are compared to similar data from other years’ budget documents they may not match because of the revisions that the government makes in its budgetary accounting and its accounts over time.