Where Does Our Money Go? 2025

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The 50-30-20 rule involves splitting your after-tax income into three categories of spending: 50% goes to needs, 30% goes to wants, and 20% goes to savings.
The categories consist of related programs and activities in different functions and subfunctions, as described below. Health insurance: Social Security: Defense: Benefits for veterans and federal retirees: Economic security programs: Interest on debt: Remaining program areas:
Generally, Congress allocates over half of the discretionary budget towards national defense and the rest to fund the administration of other agencies and programs. These programs range from transportation, education, housing, and social service programs, as well as science and environmental organizations.
$877 billion was spent on national defense. $323 billion was spent on support for veterans. $71.9 billion was spent on foreign affairs. $25.9 billion was spent on immigration and border security.
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