Federal Spending Programs Exceeding $10 Billion in Outlays in FY2006

Federal Programs With Over $10 Billion in
Outlays in FY2006
Philip D. Winters
Analyst in Government Finance
Government and Finance Division
The government spent $2,655 billion in fiscal year 2006, the most recent fiscal year
with complete budget data. Mandatory spending ($1,412 billion) accounted for 53.2%
and discretionary spending ($1,017 billion) accounted for 38.3% of total outlays that year.
Outlays for net interest ($227 billion) accounted for the remaining 8.5%. This fact sheet,
using data from the Administration’s FY2008 budget (The Budget of the United States
Government for Fiscal Year 2008, Office of Management and Budget — OMB, February
2007), lists, from largest to smallest, federal programs that generated outlays over $10
billion in FY2006.
Federal spending is often divided into two types of spending listed above:
mandatory and discretionary. Mandatory spending (also called direct spending) is
provided by law authorizing the program. Most mandatory programs are funded by
permanent appropriations, but some are funded in annual appropriations acts. However
funded, spending for mandatory programs is based on benefit levels or other factors
established by the substantive laws rather than through the appropriations process. By
contrast, discretionary spending is established in the regular annual appropriations acts
and other appropriations measures (supplemental, emergency) adopted over the course of
a fiscal year.
The table on the next page lists the 33 federal programs with outlays greater than $10
billion in FY2006. Each program is labeled mandatory or discretionary. These programs
generate about 82% of total federal outlays. The 19 largest mandatory programs
represented about 56% of total outlays, while the 14 largest discretionary programs had
about 26% of total outlays.¹

¹ Many mandatory programs have associated offsetting receipts, which are subtracted from the
programs’ total outlays to produce net outlays. The table displays gross outlays. This accounts
for the sum of the gross outlays of the 19 largest mandatory programs ($1,481.2 billion) being
larger than the net outlays of all mandatory programs ($1,412.1 billion).

Federal Outlays by Spending Programs Over $10 Billion, FY2006
(in millions of dollars and percentage of total outlays)
^Ra^nk^P^r^o^g^r^a^m^o^r^Spending^Actⁱ^vⁱ^t^y^FY²⁰⁰⁶^Ou^tl^ays^{Percent of}^T^o^tal^Ou^tl^ays^Ty^pe^a
¹^S^o^c^{ial Secu}^r^ity^-^O^ld^-^a^g^e^an^d^su^r^v^iv^o^r^{s in}^su^r^aⁿ^{ce (}^O^A^S^I⁾^b^$458,689^17.27%^M
²^D^oD^-^O^peratⁱ^oⁿ^an^{d m}^aⁱⁿ^t^eⁿ^aⁿ^c^e^202,704^7.63^D^c
³^M^edicare-^Hos^p^{ital in}^s^u^ran^{ce (HI)}^181,973^6.85^M
⁴^M^edi^cai^{d g}^r^an^t^s^t^o^S^t^at^es^180,625^6.80^M^d
⁵^M^edicare-^Su^pplem^en^tary^m^e^{dical in}^s^u^ran^{ce (SMI)}^158,644^5.97^M
⁶^D^oD-^M^ilitary^pers^onⁿ^e^l^125,199^4.71^D^e
⁷^S^o^c^{ial Secu}^r^ity^-^D^isab^ilityⁱⁿ^su^r^aⁿ^{ce (}^D^I⁾^91,235^3.44^M
⁸^D^oD^-^P^rocu^rem^eⁿ^t^89,757^3.38^D
⁹^D^oD^-^R^es^earch^{, dev}^e^l^opm^en^t^,^t^e^s^t^an^{d ev}^al^u^a^tⁱ^oⁿ^68,629^2.58^D
¹⁰^Fed^e^r^a^{l civ}^ilian^em^p^l^o^y^{ee r}^e^tir^em^en^{t an}^d^dⁱ^sab^ility⁵⁸^,⁵⁷²²^.²¹^M
¹¹^Militar^y^r^e^tir^em^en^t⁴¹^,¹⁴⁵¹^.⁵⁵^M
¹²^S^u^ppl^em^en^t^a^l^s^ecu^ri^t^yⁱⁿ^com^e^(S^S^I⁾^37,371^1.41^M
¹³^Earn^{ed i}ⁿ^com^e^t^a^x^credi^t^(ref^uⁿ^d^abl^e^portⁱ^oⁿ⁾^36,166^1.36^M
¹⁴^C^o^m^p^en^s^a^tⁱ^oⁿ^an^{d pen}^sⁱ^oⁿ^s^f^o^{r v}^e^t^e^ran^s^34,680^1.31^M^f
¹⁵^F^{ood s}^t^am^ps⁽ⁱⁿ^c^l^u^diⁿ^g^Pu^ert^o^Rⁱ^co)^34,602^1.30^M
¹⁶^Hⁱ^g^h^w^ay^s^33,111^1.25^D
¹⁷^Medi^{care pres}^cri^p^tⁱ^oⁿ^dru^g^(S^MI)^31,718^1.19^M
¹⁸^Uⁿ^em^pl^oy^m^eⁿ^tⁱⁿ^s^u^ran^{ce (U}^{I) prog}^ram^s^30,520^1.15^M
¹⁹^Natioⁿ^a^{l I}ⁿ^stitu^{tes o}^f^Health²⁷^,⁶⁰⁹¹^.⁰⁴^D^g
²⁰^{Medical care an}^{d h}^o^s^p^{ital s}^e^rv^ices^f^o^{r v}^e^teran^s^27,558^1.04^D
²¹^F^e^deral^f^a^mⁱ^l^y^edu^catⁱ^oⁿ^l^o^an^prog^ram^27,132^1.02^M
²²^Dⁱ^s^a^s^t^{er rel}ⁱ^e^f^24,069^0.91^D
²³^S^ectⁱ^oⁿ^{8 ren}^t^al^as^sⁱ^s^t^an^ce^23,534^0.89^D
²⁴^T^e^m^p^o^r^ar^y^assistan^{ce f}^o^rⁿ^eed^y^f^a^m^{ilies (}^T^A^N^F)^an^d^16,974^0.64^M
^rel^a^t^e^{d prog}^ram^s
²⁵^C^o^m^m^odi^t^y^C^r^edi^t^C^o^rporatⁱ^oⁿ^16,818^0.63^M
²⁶^N^a^tⁱ^oⁿ^a^l^f^l^{ood i}ⁿ^s^u^ran^{ce f}^uⁿ^d^16,519^0.62^M
²⁷^C^hⁱ^l^d^t^a^x^credi^t^(ref^uⁿ^d^abl^e^portⁱ^oⁿ⁾^15,473^0.58^M
²⁸^Edu^catⁱ^oⁿ^f^o^{r t}^h^{e di}^s^a^dv^an^t^a^g^e^d^14,696^0.55^D
²⁹^S^t^u^d^en^t^fⁱⁿ^aⁿ^cⁱ^a^l^as^sⁱ^s^t^an^ce^14,690^0.55^D
³⁰^Aⁱ^rport^s^an^{d ai}^rw^ay^s^(F^A^A⁾^14,371^0.54^D
³¹^{State ch}^ildⁿ^u^t^r^itioⁿ^p^r^o^g^r^a^m^s¹²^,⁴³⁰⁰^.⁴⁷^M
³²^S^p^eci^al^edu^catⁱ^oⁿ^11,836^0.45^D
³³^B^o^r^d^er^an^d^tr^an^sp^o^r^tatioⁿ^secu^r^ity^dⁱ^r^ecto^r^{ate activ}^ities¹¹^,⁰⁴⁹⁰^.⁴²^D
^M^a^{ndatory s}^{ubtotal great}^{er than $10 billio}ⁿ¹^,481,286^55.78
^Dis^{cretionary s}^ubt^{otal greater than}^{$10 billion}^688,812^25.94
^T^o^{tal greater than}^{$10 billion}²^,^170,098^81.72
^T^o^tal^ou^tl^ays^2,655,435^100.00
^Source:^Of^fⁱ^{ce of}^Man^a^g^e^m^eⁿ^t^an^d^B^u^dg^et,^Budget^of^t^h^{e U}^.^{S. G}^o^ver^nm^ent^,^Fi^s^c^al^Y^e^ar^{2008, Anal}^ytⁱ^c^al
^Per^s^p^ectives^{, C}^D^-ROM^(Was^hⁱⁿ^g^t^on^:^G^P^O^,^2007),^Bu^dg^et^A^u^t^h^ori^t^y^an^{d O}^u^t^l^a^y^s^by^F^uⁿ^c^tⁱ^oⁿ^,^C^a^t^e^g^o^ry
^aⁿ^d^P^r^o^g^r^a^m,^T^a^b^l^e²⁷^-¹^,^a^v^aⁱ^l^a^b^l^e^a^t^[^h^t^t^p^:^/^/^www.^whⁱ^t^e^h^o^u^s^e^.^g^o^v^/^o^m^b^/^b^u^d^g^e^t^/^f^y^2008/^pdf^/^a^p_cd_rom^/
^27_1.pdf^].
^{a. M = m}^aⁿ^d^atory^;^{D = dis}^c^retion^a^ry^.
^{b. Ex}^clu^d^es^dis^c^retion^a^ry^ou^tlay^s^f^o^{r adm}ⁱⁿⁱ^s^t^rativ^{e ex}^pen^s^es^{($2,324 m}^illionⁱⁿ^FY2006).
^{c. Ex}^clu^d^es^both^pre^mⁱ^u^m^s^aⁿ^d^collection^s^{($2,652 m}^illionⁱⁿ^{FY2006), an}^{d dis}^c^retion^a^ry^ou^tlay^s^f^o^r
^admⁱⁿⁱ^s^t^rativ^{e ex}^pen^s^es^{($1,812 m}^illionⁱⁿ^FY2006).
^d^.^E^x^c^l^u^d^e^s^b^o^t^h^p^r^e^mⁱ^u^m^s^aⁿ^d^c^o^l^l^e^c^tⁱ^oⁿ^s^($41,^{647 m}^illionⁱⁿ^{FY2006), an}^{d dis}^c^retion^a^ry^ou^tlay^s^f^o^r
^admⁱⁿⁱ^s^t^rativ^{e ex}^pen^s^es^{($2,637 m}^illionⁱⁿ^FY2006).
^{e. Ex}^clu^d^es^dis^c^retion^a^ry^ou^tlay^s^f^o^{r adm}ⁱⁿⁱ^s^t^rativ^{e ex}^pen^s^es^{($2,007 m}^illionⁱⁿ^FY2006).
^f^.^T^h^{e f}^{ood s}^t^am^{p prog}^ramⁱ^s^defⁱⁿ^e^d^as^di^rect^s^p^en^diⁿ^g^by^S^ectⁱ^oⁿ^{250(c)(8) of}^t^h^{e Bal}^aⁿ^{ced Bu}^dg^et^an^d
^Em^erg^eⁿ^c^y^D^e^fⁱ^ci^t^C^oⁿ^t^rol^A^c^t^of^{1985 (2 U}^.^S^.^C^.^{900), as}^am^en^{ded, rat}^h^{er t}^h^an^byⁱ^t^s^sub^s^t^a^ntⁱ^v^e
^legⁱ^slatioⁿ^.
^g^.^Dedu^ction^m^a^{de f}^o^{r m}^e^{dical care collection}^s^{($1,897 m}^illionⁱⁿ^FY2006).