<P> The United States federal budget consists of mandatory expenditures (which include entitlement programs such as Medicare and Social Security), discretionary spending for defense, Cabinet Departments (e.g., United States Department of Justice) and agencies (e.g., Securities & Exchange Commission), and interest payments on debt . </P> <P> During FY2016, the federal government spent $3.27 trillion on a budget or cash basis, up $18 billion or 1% vs. FY2015 spending of $3.25 trillion . Major categories of FY 2016 spending included: </P> <Ol> <Li> Healthcare such as Medicare and Medicaid ($1,060 B or 28% of spending), </Li> <Li> Social Security ($910 B or 24%), </Li> <Li> Non-defense discretionary spending used to run federal Departments and Agencies ($600 B or 16%), </Li> <Li> Defense Department ($585 B or 15%), </Li> <Li> Interest ($240 B or 6%). </Li> </Ol> <Li> Healthcare such as Medicare and Medicaid ($1,060 B or 28% of spending), </Li>

Where is most of the federal budget spent