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Almost Half of U.S. Domestic Spending
in 2002 for Social Security, Medicare and Medicaid
WASHINGTON, June 4, 2003 -- Social
Security, Medicare and Medicaid accounted for $890 billion (47
percent) of the U.S. government's 2002 domestic spending. The federal
government spent a total of $1.9 trillion in the states, the District
of Columbia, Puerto Rico and outlying areas during 2002, according to
two reports released today by the Commerce Department's Census Bureau.
This was an 8 percent increase over 2001.
The largest increases in fiscal year
2002 federal spending were in the categories of "other direct
payments," grants and procurement awards. Other direct payments
included Medicare at $251 billion, up 5.8 percent, plus unemployment
compensation, excess earned income tax credits and food stamps. The
total of other direct payments was $422 billion, a 12 percent increase
over 2001.
Grant awards climbed to $412 billion, an
11.6 percent increase over 2001, with Medicaid, the largest, amounting
to $148 billion, up 11.1 percent. Federal procurement awards in 2002
amounted to $271 billion, a 10.1 percent increase over 2001, with
Department of Defense contracts totaling $166 billion, or 61 percent.
Direct payments to individuals for
retirement and disability reached $613 billion in 2002, up 2.2 percent
over 2001, with Social Security alone totaling $491 billion, a 1.5
percent increase.
Federal government salaries and wages
were $199 billion, up 5.8 percent, with the Department of Defense (38
percent) and the Postal Service (26 percent) making up nearly
two-thirds of the total.
Consolidated Federal Funds Report for
Fiscal Year 2002 (State and County Areas) covers benefits, subsidies,
grants, goods and services, and salaries and wages. The largest item
excluded is interest on the federal debt. A companion report, Federal
Aid to States for Fiscal Year 2002, contains federal agency and
program-level data on grants to state and local governments.
Californians benefitted the most,
receiving $206 billion, followed by the people of New York ($129
billion), Texas ($123 billion), Florida ($105 billion) and
Pennsylvania ($86 billion). One-third of all federal expenditures went
to people living in these five states, which account for 36 percent of
the total U.S. population.
Reports and data tables are available on
the Census Bureau's Internet homepage at
http://www.census.gov
At the county or county-equivalent
level, New York City, N.Y., and Los Angeles County, Calif., both with
about $52.9 billion, led the list of recipients. They were followed by
Cook County, Ill. ($29.2 billion); San Diego County, Calif. ($23.2
billion); and Maricopa County, Ariz. ($17.3 billion).
Per capita federal spending among
states, meanwhile, was highest in Alaska ($11,746), Virginia
($10,220), North Dakota ($10,151), New Mexico ($9,422) and Maryland
($9,076). The rest of the top 10, in order, were: Hawaii ($8,414),
South Dakota ($8,297), Montana ($7,668), Alabama ($7,643) and Missouri
($7,465). Factors affecting per capita spending included the state's
population, the number of its federally funded programs and the number
of federal employees residing in the state.
Resident population as of July 1, 2002,
was used to calculate per capita amounts for the states, counties and
county-equivalent areas.
DOD spending
The Department of Defense spent a total
of $278 billion domestically in 2002, up 8.8 percent over 2001. This
amount included procurement contracts, payroll, military pensions and
grants.
Defense Department spending in 2002 was
the highest in the following five states: California ($36.2 billion),
Virginia ($29.6 billion), Texas ($22.3 billion), Florida ($14.3
billion) andGeorgia ($11.0 billion). The top five counties or
equivalents in federal defense expenditures were: Los Angeles ($10.3
billion) and San Diego ($10.0 billion) counties in California; Fairfax
County, Va. ($6.0 billion); St. Louis City, Mo. ($4.8 billion); and
Bexar County, Texas ($4.6 billion).
In addition to providing an overall
picture of the federal government's domestic spending, the reports
break out spending by federal agencies for fiscal year 2002 (Oct. 1,
2001 Sept. 30, 2002). No data were shown for the Department of
Homeland Security, which was created on Jan. 24 of this year. However,
spending by pre-existing agencies and programs, now part of that
department, were included.
The data in these reports are not
subject to sampling variability, but are subject to nonsampling
errors, which include errors of response and processing.
These reports present data for the
states and counties only. They do not support the application of
federal spending data directly for other areas such as places and
congressional districts. |
