Government spending in the United States occurs at three levels: Federal, State, and Local. The Federal government main spending is Medicare, Social Security, National Debt, and National Defense. It also plays a major role in funding programs related to Veterans’ Benefits, Food Assistance, and Scientific Research. Around two thirds of the budget is entitlements like Medicare and Social Security that are by far the largest budget items.
State and local governments focus on providing more direct services to their residents. Their largest spending categories are typically education (K-12 and higher education), public welfare programs like Medicaid (which is jointly funded with the federal government), public safety (police and fire), and transportation (building and maintaining roads). While their responsibilities can overlap, each level of government has a distinct role in funding and delivering public services.
There is no simple answer to this question, however research by the Congressional Budget Office (CBO) has provided detailed comparisons.
According to CBO analysis, Federal civilian workers with less education tend to earn more in wages than similar workers in the private sector, while Federal workers with more education tend to earn less. However, when benefits like health insurance and retirement plans are included, the total compensation for federal employees is, on average, higher than for similar workers in the private sector across most education levels. The value of Federal benefits, particularly defined benefit pensions, is a significant part of this difference.
Yes. USAspending.gov provides near-real-time award data reported by agencies, and FiscalData.Treasury.gov hosts live series like the debt, receipts, and outlays with APIs for reuse. Treasury’s Monthly Treasury Statement summarizes each month’s receipts and spending. The Smarter Citizen app by the Tax Project shows the same near-real-time data with interactive visualizations that allow you to explore the data. These sites are designed for public transparency: you can search by place, program, and recipient, and download the exact data used in the charts.
No. Federal law does not allow states to file for bankruptcy. Chapter 9 provides a process only for municipalities (cities, counties, certain districts) and only when state law authorizes it. If a municipality files, a federal bankruptcy court oversees a plan to adjust debts while essential services continue. State governments facing stress must address it through policy changes, refinancing, or other actions under state law.
No. Agencies may not obligate or spend beyond what Congress has provided except as permitted by law. The Antideficiency Act prohibits spending in excess of or in advance of appropriations. For true emergencies, Congress can pass supplemental appropriations or laws that provide specific emergency authorities. OMB, GAO, and agency Inspectors General monitor compliance and report violations publicly.
Yes, you can approximate per-person costs by dividing spending in a service area (for example, police or parks) by the population served. Use your city’s adopted budget or annual financial report for the spending figure and Census population for the denominator. For comparisons across places, the Census finance survey reports expenditures by function for thousands of governments each year. Pair those with Census population tables to build consistent per-capita comparisons.
Yes. Bureau of Labor and Statistics (BLS) publishes average prices for items like eggs, milk, and bread, and provides interactive tools to chart changes over time. For fuel, the Energy Information Administration posts weekly retail prices by region. Using these open sources lets any resident verify inflation without needing specialized knowledge or tools.
States can issue debt, mainly to fund capital projects like roads and schools, but most are required by law or constitution to maintain balanced operating budgets. While the federal government can run persistent deficits and expand its debt without a strict upper bound, states must generally align revenues and expenditures each year, sharply limiting how much debt they can accumulate for day-to-day operations.
Crucially, states cannot create new money or borrow unlimited amounts at will, unlike the federal government, which issues the U.S. dollar and can always finance its debt through the Treasury and Federal Reserve. This means state debt is more tightly constrained and subject to greater fiscal scrutiny – if states overspend, they must raise taxes, cut services, or risk downgrades and higher borrowing costs, since default or devaluation are not practical options. To see how much debt your state carries and how it is structured, consult Census debt statistics and your state’s financial reports. A Congressional Research Service overview explains balanced-budget practices.
The Fed does not set the rate on your savings account. Your bank sets it based on funding costs, competition, and business strategy. However, bank deposit rates tend to move with overall interest rates, which are influenced by the Fed’s policy decisions and the broader economy.
The Treasury creates the phyiscal money supply (bill and coins), and has the ability to “print” money as authorized up the the Debt limit. The phsical money supply is about 11% of the overall money supply. The Fed does not per say “print” money but it does “create” money including almost 90% of the money supply. When the Fed buys securities, it pays by crediting banks’ reserve accounts, creating reserves electronically – essentially creating money and increasing money supply and this is often what is meant by “printing” money. This can lower interest rates and support credit during stress. The Fed cannot spend money on goods and services or fund government programs; only Congress and the Treasury do that through the budget process. All such actions are disclosed on the Fed’s balance sheet and in policy announcements. The public can track the size of the portfolio, the reasons for changes, and how these choices fit within the Fed’s mandate.
Yes, most career Federal government employees are covered by a pension plan, which provides a defined monthly payment in retirement. This is part of a three-tiered retirement system that also includes Social Security and a 401(k)-style investment plan called the Thrift Savings Plan (TSP). This type of defined-benefit pension has become much less common in the private sector.
Over the past few decades, most private-sector companies have shifted away from offering traditional pensions due to costs and now primarily offer defined-contribution plans, such as 401(k)s, where the employee’s retirement income depends on their contributions and investment returns. While both sectors offer retirement benefits, the structure and generosity, particularly the guarantee of a lifetime pension, are now significantly different, with federal benefits generally being more comprehensive.
States and localities operate under their own procurement and ethics laws, which require competitive processes and conflict-of-interest safeguards. When they spend federal grant funds, they must also follow federal procurement standards, including written policies, competition, cost reasonableness, and conflict rules. These federal standards are detailed in the Uniform Guidance. They apply to states, local governments, and certain nonprofits whenever federal assistance pays the bill, adding another layer of accountability.
No, new spending does not always have to be offset by cuts or revenue increases. Whether Congress must offset new spending depends on the specific budget rules in place, such as budget resolutions, PAYGO (Pay-As-You-Go) laws, or chamber rules. Some spending is statutorily required to be offset, especially under PAYGO, which mandates that new mandatory spending or tax cuts that increase the deficit must be balanced by savings or revenues. However, Congress can also designate certain spending as emergencies or exempt from offset requirements.
Mandatory spending programs (like Social Security, Medicare, and Medicaid) operate automatically and often do not require annual offsets as their funding is set by permanent laws. In contrast, discretionary spending is more subject to offsets via appropriations and budget rules. The Congressional Budget Office (CBO) and Congressional Research Service (CRS) offer guidance on how offsets apply under various scenarios, helping explain when lawmakers must pay for policies and when they have more flexibility.
No, Social Security does NOT function like a personal investment account such as a 401(k) or an IRA where you could potentially achieve significantly higher returns. When you pay Social Security taxes, you are NOT depositing money into a private account under your name that grows based on market returns. Your contributions go into a government trust fund used as a Social Safety Net to pay for the benefits of current retirees and other recipients.
Your future Social Security benefit is not based on the amount you contributed or any investment gains. Instead, it is calculated using a formula based on your average earnings over your working career. It is a social insurance system where financial risk is spread across the entire population, designed to provide a foundational income in retirement, rather than a market-based return on investment.
Interest payments are mandatory and must be made before many other priorities. So YES, when interest costs rise there is less room left in the budget for other programs unless taxes rise, other spending falls, or the the budget takes on more debt. CBO’s baseline shows how net interest compares with other categories over time, helping voters and officials weigh trade-offs in a transparent way.
In FY 2024 Interest on Debt was over $1.1 trillion making it the 3rd largest budget item in the Federal budget larger than National Defense. If debt and the interest from the debt continue to grow at some point it could have negative consequences to the Service government provides or require adjustments to our tax structure to increase revenue.
The Federal Reserve’s actions have definitely contributed to boom and bust cycles, often unintentionally. By lowering interest rates and pumping money into the economy during downturns, the Fed encourages borrowing and spending, which can inflate asset bubbles. Later, when it raises rates to control inflation, these bubbles can burst, causing recessions. This cycle of easy money fueling booms and tightening leading to busts has repeated many times, including the dot-com bubble, the 2008 housing crisis, and the recent inflation surge following pandemic-era stimulus.
While the Fed’s goal is to smooth out economic fluctuations and maintain stability, its tools sometimes amplify volatility instead. Economic cycles are also influenced by global events, technological changes, and private sector actions outside the Fed’s control. So, while the Fed plays a powerful role in shaping cycles, it is not the sole cause, and policy mistakes or unintended consequences have sometimes made busts deeper or booms less sustainable. Understanding this complex role helps explain why calls for reform and better accountability continue.
No, the government does not count contractor personnel or grant recipients as part of its official employee headcount. The official headcount and Full-Time Equivalent (FTE) numbers for the federal workforce, which are tracked by the Office of Personnel Management (OPM), only include civil service employees.
While contractors and grantees perform essential work on behalf of the government, they are not federal employees. They work for private companies or non-profit organizations that have been awarded a contract or grant. Tracking the exact number of contractor personnel is challenging, as the government primarily tracks the dollar value and scope of contracts, not the number of individuals working on them. This distinction is important for understanding the true size and scope of the total workforce that is funded by taxpayer dollars. Some reports suggest that Federal Contractors are as many a 4 times the Federal Government headcount (9.1 Million – See POGO in reference)
The most often cited measure of inflation is from the Bureau of Labor and Statistics (BLS) called the Consumer Price Index (CPI) which is an average across many households and measures out of pocket expenses in urban areas. Your experience may differ if you spend more on items like housing, medical care, childcare, or live outside urban areas. Another official measure from the Bureau of Economic Analysis (BEA) covers a broader set of purchases called Personal Consumer Expenditures price index (PCE). Checking both and comparing them with your own budget may give a clearer picture of inflation as it effects you.
Policy is set by the FOMC, a committee that debates the economic outlook and votes on actions. The Chair leads the discussion and communicates the decision, but each voting member casts an individual vote. Statements list the votes and any dissents, and minutes provide a fuller summary of the range of views. This committee process is designed to bring diverse perspectives from across the country into each decision.
Earmarks and pork barrel spending refer to funds that members of Congress allocate for specific projects, typically benefiting their own districts or states. Today, the House calls them “Community Project Funding” and the Senate calls them “Congressionally Directed Spending.” These are line-item awards requested by Members of Congress that must comply with published eligibility and disclosure rules. While they constitute a small share of total government spending and must fit within regular appropriations limits, critics argue that earmarks can be used to bypass normal competitive processes and steer taxpayer money for political gain or local favors.
Despite these concerns, earmarks are defended as a way to direct resources toward local priorities that might otherwise be overlooked. Both House and Senate Appropriations Committees publish detailed lists and disclosures showing who requested what and why, enhancing transparency. Yet, the practice remains controversial because it can blur the lines between legitimate funding for community needs and political bargaining, posing challenges to clear, efficient budgeting and inviting public skepticism about waste and favoritism.
Federal employees have due process rights, and agencies must follow specific legal procedures when taking disciplinary action, which can range from a letter of reprimand to suspension or removal from service. For most career employees, agencies must base adverse actions on performance issues or misconduct, and the penalty must be reasonable.
An employee facing a serious disciplinary action, like removal, has the right to receive advance written notice, review the evidence against them, and respond to the charges. If the agency decides to proceed, the employee can appeal the decision to an independent body, the Merit Systems Protection Board (MSPB). This process is designed to protect employees from unfair or arbitrary political influence and ensure that personnel decisions are based on merit.
The Federal government evaluates program effectiveness through a variety of methods to ensure that taxpayer money is being used wisely and that programs are achieving their intended goals. These evaluations can include performance measurement, where agencies track specific metrics, as well as in-depth program evaluations conducted by internal or external experts.
The Foundations for Evidence-Based Policymaking Act of 2018 (Evidence Act) has strengthened these efforts, requiring agencies to develop annual evaluation plans and build evidence to support their policies. The Government Accountability Office (GAO) also plays a crucial role by conducting independent audits and evaluations of federal programs for Congress. You can find agency-specific evaluations on their websites and GAO reports on GAO.gov. Organizations, like the Tax Project, also provide third party transparency and support Open Government initiatives.
Social Security and Medicare are primarily funded through dedicated Payroll Taxes, known as the Federal Insurance Contributions Act (FICA) tax. Both employees and employers pay these taxes, which are automatically deducted from workers’ paychecks. The money goes into trust funds that are specifically designated for these programs.
These programs also receive funding from other sources. This includes income taxes that some higher-income beneficiaries pay on their benefits, interest earned on the trust fund balances, and, for parts of Medicare, premiums paid by participants and money from the federal government’s general fund. Detailed financial data for these programs is publicly available in the annual Social Security and Medicare Trustees Reports, which can be found on their respective agency websites.
The adopted budget and appropriation ordinances show which departments and programs receive funding and from which revenue sources. School funding may be in a separate school-district budget. Transportation projects often appear in a capital plan with one-time costs spread over multiple years. To understand categories and compare with other places, use the Census Bureau’s finance survey, which classifies spending by function (education, public safety, transportation, etc.). Your city or district’s budget pages provide the line-item details for local decisions.
Most governments publish a “budget-in-brief” or summary alongside the full budget. These explain major revenues, spending by department or program, and key changes from last year in plain language and charts. The adopted budget and annual financial report are usually posted on the city or county website under Finance, Budget, or the Clerk. If you need comparable data across places, use the Census Bureau’s State and Local Government Finance tables. These federal datasets are downloadable and let you compare your city or county with peers.
Ask for clear, timely publishing of price and spending data, budgets, and program rules so residents can evaluate what’s happening and hold leaders accountable. Speaking with a Financial Advisor is helpful and can help you plan savings choices that adjust with inflation, such as I Bonds or inflation-indexed Treasuries (TIPs). Using official resources can aid in your Financial planning.
Look for timely posting of the adopted budget, mid-year updates, and the annual financial report with an independent auditor’s opinion. Check whether bond disclosures are current on EMMA and whether any Single Audit findings were resolved. These documents are public records. Together, they show how plans matched results and whether controls are strong.
Cities publish their annual financial report with an independent auditor’s opinion; look on the Finance or Clerk’s webpage. If your city spends significant federal funds, it will also have a Single Audit that is filed in the Federal Audit Clearinghouse. You can search the Clearinghouse by name and year to confirm whether a recent audit exists and read any findings and corrective actions.
You can look up the bill on Congress.gov to read the text and committee reports, then check whether the Congressional Budget Office issued a cost estimate explaining the expected budget effect (increases, decreases, or no significant change). To see how your member voted, use the House or Senate roll-call pages linked from Congress.gov. These official records support community oversight of proposed spending.
Use official oversight tools: read GAO and IG reports, check USAspending award data, and compare agency goals and results on Performance.gov. If you have questions or concerns, contact your member of Congress or the relevant IG office. These resources are designed for public use and include plain-language summaries plus the underlying data and audits.
Budget timelines and hearing notices are posted on your city or county website and often published as legal notices. You can submit comments in person, by email, or through online portals when available. Many meetings offer live streams and recorded replays. Use your state’s open-meetings and public-records rules to access agendas, presentations, and backup documents. Start at your city or county clerk’s page or use the USA.gov directory to find the right office.
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Congratulations, your participation strengthens our democracy. You can send public comments on proposed rules at Regulations.gov, submit testimony or public-witness statements to House and Senate Appropriations (during open periods), and contact your elected Congressional representatives directly. Local town halls and agency listening sessions are additional channels. These inputs become part of the public record. Use the official portals below to find open dockets and instructions for submissions.
You can view data on vendor concentration and small business participation in federal contracting through USASpending.gov. This official website provides detailed information on which companies are receiving federal contracts and allows you to analyze market trends. You can see which vendors are the top recipients of contracts for specific agencies or for the government as a whole.
The site also provides extensive data on the government’s progress in meeting its small business contracting goals. Federal law requires that a certain percentage of contract dollars be awarded to various categories of small businesses, such as those owned by women, veterans, or socially and economically disadvantaged individuals. The Small Business Administration (SBA) also publishes annual scorecards that rate how well each federal agency is doing in meeting these small business participation goals.
You can submit public comments on proposed rules, contact your regional Federal Reserve Bank, write to the Board of Governors, or express your concerns to your local congressional representative. The Chair and other officials regularly testify before Congress, where elected representatives raise constituent concerns. The Fed also hosts listening sessions, advisory councils, and outreach events. Comment portals and contact information are posted online so residents can participate directly.
Federal agencies decide between using civil service employees (government workers) and private contractors based on a process that weighs factors like cost, efficiency, and whether the work is “inherently governmental.” For commercial activities that could be performed by either sector, agencies may be required to conduct a cost comparison to determine the most cost-effective option.
The government’s long-standing policy, outlined in OMB Circular A-76, is to rely on the private sector for needed commercial services. However, certain functions, particularly those that are “inherently governmental” or closely associated with it, must be performed by federal employees to ensure accountability and protect the public interest. This decision-making process, known as “sourcing,” is a key part of managing the federal workforce and budget.
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Banks hold reserve accounts at the Fed to settle payments and meet liquidity needs. Each day they send and receive funds through Fedwire and other services, manage cash, and, when needed, may borrow at the discount window. These services help the financial system operate smoothly. The Fed publishes rules, fees, and volumes for payment services, and provides details about the discount window’s terms and collateral.
Data quality is the foundation of government transparency. If the financial data that the government publishes is inaccurate, incomplete, or inconsistent, it undermines the public’s ability to understand how their money is being spent and to hold officials accountable. Poor data quality, including omission and lack of timely updates, can obscure waste, mask inefficiencies, and make it difficult to evaluate whether government programs are effective.
For transparency tools like USAspending.gov to be useful, the underlying data submitted by federal agencies must be reliable. The DATA Act of 2014 was a major step toward improving data quality by creating standardized reporting requirements. However, government watchdogs like the Government Accountability Office (GAO) and agency Inspectors General continue to monitor data quality to ensure that the information provided to the public is trustworthy and accurate.
Surveys ask households what they expect prices to do in the year ahead and beyond. Two widely watched measures are the New York Fed’s Survey of Consumer Expectations and the University of Michigan’s Surveys of Consumers. These expectations matter because they can influence actual pricing and wage decisions. Publishing the results openly helps residents see whether views are shifting and why.
Congress appropriates funds that agencies distribute by formula or competition through grants and cooperative agreements. These dollars support schools, roads, public health, and more. USAspending provides state profiles and recipient-level details so residents can see how much funding flows to their communities and which programs are involved. You can also use the Smarter Citizen app by the Tax Project to see the Fund Flow to and from States.
The Freedom of Information Act (FOIA pronounced: FOY-uh) is a law that gives the public the right to request access to records from any federal agency. This is a powerful tool for transparency that can be used to obtain budget and contract data that is not already publicly available on sites like USAspending.gov.
To make a FOIA request, you must submit a written request to the agency that you believe has the records you are seeking. You should be as specific as possible in describing the records you want. The agency is required to respond to your request, though certain information may be withheld if it falls under one of nine exemptions that protect interests such as personal privacy, national security, and law enforcement. Each agency has a FOIA office and information on its website explaining how to submit a request.
Housing has a large weight (shelter is over 30%) in the Consumer Price Index (CPI). BLS measures tenants’ rent directly and uses “owners’ equivalent rent” (OER) to estimate the housing service you receive from living in your own home. Mortgage interest is not treated as a consumer price in the CPI. Knowing what is and is not included can help interpret inflation reports and local housing debates.
You can find your elected federal representatives for the House of Representatives and the Senate by using the official lookup tools on their respective websites, House.gov and Senate.gov. These sites typically allow you to search by your address or zip code.
To see how your representatives vote on budget issues and other legislation, the best resource is Congress.gov, the official website for U.S. federal legislative information. This site provides a searchable database of all bills, including appropriations bills, and records the roll call votes of every member of Congress. Non-partisan organizations like GovTrack.us also provide user-friendly tools to track your representatives’ voting records and legislative activities.
The central hub for finding and applying for all federal grant opportunities is Grants.gov. This website is a free, official resource managed by the U.S. Department of Health and Human Services on behalf of all federal grant-making agencies. It provides a comprehensive, searchable database of available grants.
On Grants.gov, you can search for grant opportunities by keyword, agency, eligibility category, or other criteria. Each grant forecast or synopsis provides details about the funding opportunity, including its purpose, eligibility requirements, and application deadlines. The website also provides extensive resources to help individuals and organizations navigate the grant application process.
Following money from its appropriation by Congress to its eventual use by a federal agency is fundamental to government transparency. The primary public tool for this is USAspending.gov, the official federal website for spending data or the Smarter Citizen app by the Tax Project. It allows you to track funds from the appropriation level down to specific awards, like contracts and grants.
On USAspending.gov and the Smarter Citizen app, you can search for information by agency, program, location, or recipient. They provide details on the different stages of spending, including budget authority, obligations, and outlays. For more in-depth information, you can also review an agency’s annual congressional budget justification documents. These are usually available on the agency’s own website and provide a detailed breakdown of how they plan to use their requested funds.
The federal regulatory process provides several avenues for public participation. When a federal agency proposes a new regulation, it is required by law to publish the proposed rule in the Federal Register and to provide a period for the public to submit comments. This gives an opportunity for citizens and organizations to provide feedback and influence the final shape of the rule.
The primary portal for this process is Regulations.gov. This website provides a central, searchable database of all proposed federal regulations and allows you to submit comments directly to the agencies online. Participating in this process is a key way for the public to engage in their government and help ensure that federal regulations are effective, fair, and based on sound public input.
There is no automatic adjustment for wages to match inflation. Many employers have Cost of Living Adjustments (COLA) to adjust for inflation. However, if your pay rises slower than prices, your “real” (inflation-adjusted) earnings fall. BLS “real earnings” reports show whether pay is keeping up. Your actual circumstances may differ substantially than BLS data, but it is a rough baraometer. To protect savings, consider choices that adjust with inflation, such as U.S. Treasury I Bonds and inflation-indexed Treasury securities (TIPS). Checking with Financial Advisors can assist with plans to outpace inflation and protect and grow Savings.
The Ffederal government uses performance awards and bonuses to recognize and reward employees for high-quality work and contributions to their agency’s mission. These awards are a component of the government’s pay-for-performance system and can take various forms, including cash bonuses, time-off awards, and quality step increases to base pay.
The criteria and funding for these awards are determined by each individual agency, based on guidance from the Office of Personnel Management (OPM). Decisions about awards are typically linked to an employee’s annual performance rating. The goal of the system is to incentivize excellence and create a clear link between individual performance and recognition, thereby fostering a more effective and motivated workforce.
Effects can vary regionally and by industry. Higher macro input and borrowing costs at the National level can squeeze small-business margins that may trickle down to local economies impacting prices, and wages. Local wages and rents set the pace for neighborhood budgets, and a strong and healthy local economy with good diversity may not see the impacts of National macro trends as much as other regions. You can track local inflation using BLS metro indexes and pair that with Small Business Administration (SBA) profiles for context. These resources can support planning for city leaders and small business owners.
Pension promises are long-term obligations. If contributions and investment returns are lower than expected, unfunded liabilities can grow and put pressure on budgets. When plans are well funded and managed, the costs are steadier and more predictable. You can review plan assets, liabilities, and contributions in the Census Bureau’s public pensions survey and in your government’s pension financial reports and actuarial valuations, which are publicly posted.
When spending federal awards, governments must follow the Uniform Guidance rules for financial management, procurement, and reporting. Large recipients undergo a “Single Audit” that tests compliance with grant requirements. Single Audit reports are publicly searchable in the Federal Audit Clearinghouse. Combined with local budget and financial reports, they show how federal dollars were used and whether any findings need correction.
Because most must balance their budgets, states and localities often reduce spending, delay hiring or projects, tap rainy-day funds, or raise certain revenues when the economy weakens. Federal aid can help stabilize services, especially for public health, schools, and transit. GAO and CRS provide overviews of these tools and how they were used in past recessions. Reviewing these reports helps residents anticipate likely actions in their community.
When revenues fall below plan, states typically use a mix of tools: tapping rainy-day funds, freezing or cutting spending, delaying projects, transferring funds, or, less often, raising taxes or fees. Mid-year adjustments are common during recessions to keep budgets in balance.
Some states, like California, have highly progressive taxes that depend heavily on wealthier individuals who in turn income is often more dependent on Economic and Market conditions. Because of this, revenue maybe less stable, and be subject to windfalls and shortfalls. CRS and GAO summarize these options and how they have been used in past downturns, helping residents understand why states may change services or timelines mid-year.
Historically, the Fed’s actions have had a signficant impact on markets. The Fed’s policy affects interest rates and financial conditions, which influence corporate borrowing costs, market valuations, and investor sentiment. Easier policy often lowers discount rates and that in turn can support asset prices; tighter policy tends to do the opposite as markets adjust to higher financing costs lowering valuations. While the Fed watches overall financial stability, it does not focus on the stock market. The Fed is focused on its dual mandate of Employement and Price Stability. However, as an investor you should understand how the Fed’s policies can impact the market as they can have significant effects.
When the dollar strengthens, imported goods often cost less in dollars; when it weakens, imports can cost more. These shifts can feed into consumer prices over time. You can follow import prices at BLS and dollar indexes from the Federal Reserve. Watching both helps communities anticipate cost changes for items sourced from abroad.
It varies significantly but generally the Federal government tends to offer higher average salaries than state and local governments. This is partly because Federal jobs are often concentrated in high-cost metropolitan areas and may require higher levels of education or specialization.
However, benefits can be a major equalizer. While Federal benefits are considered generous, many state and local governments also offer strong pension and healthcare packages that can be competitive with or even exceed federal offerings. The U.S. Bureau of Labor Statistics (BLS) provides compensation data that allows for comparisons of wages and benefits across federal, state, and local government sectors.
Federal spending has a significant and direct impact on local communities across the country. This impact is felt through a variety of channels, including direct payments to individuals, grants to state and local governments, federal contracts awarded to local businesses, and the salaries of federal employees who live and work in the community.
For example, Social Security payments provide income for local retirees, federal grants help fund local schools and roads, and contracts with local companies create jobs. Websites like USAspending.gov are designed to make this impact more transparent. You can use the site to explore how much federal money is flowing into your specific state, county, or zip code, and see which programs and projects are being funded.
Rising prices reduce the purchasing power of what your saved dollars can buy in the future. That’s why real (inflation-adjusted) returns matter for long-term planning. If your retirement savings are not growing faster than inflation, the value of your savings in purchasing power is reducing. Consulting a Financial advisor can assist your planning and leverage tools such as I Bonds or inflation-indexed Treasuries (TIPs), or higher return instruments to help offset inflation.
States and localities adopt their own yearly budgets through public hearings and votes by city councils, county boards, or state legislatures. Most have balanced-budget requirements for operating funds, so they must match planned spending with expected revenues or make mid-year fixes when revenues fall short. Capital projects (like roads and water systems) are often funded separately through multi-year plans and bonds. The federal government follows a different process and can run annual deficits. To see state and local money flows and compare across places, use the Census Bureau’s State and Local Government Finance data; for your community’s specifics, read the adopted budget and annual financial report posted on your regional government website. Additionally, NASBO a non profit 501c3 offers great information on State budgets.
States collect non-tax revenues from charges for services (such as tuition or park fees), licenses, fines, fees, and enterprise activities, plus net proceeds from state lotteries where authorized. These sources can be significant for some states and programs. The Census finance survey reports revenues by type—including charges, licenses, and lottery proceeds—so you can see their role over time and compare across states.
Quantitative easing (QE) is when the Fed buys Treasury and agency securities to support smooth market functioning and lower longer-term borrowing costs; quantitative tightening (QT) is the reverse, allowing holdings to mature or be sold to reduce the balance sheet and increasing borrowing costs. These actions change the amount of bank reserves in the financial system and influence interest rates beyond the overnight rate. QE and QT are conducted through the New York Fed’s open-market operations and are reported in detail. The size and composition of the Fed’s assets and liabilities are published weekly so the public can see how policy choices affect reserves and broader financial conditions.
When states provide more aid for schools, public safety, or infrastructure, local governments may need to raise less from property taxes to fund the same services. When state aid falls, localities often face choices: increase local taxes or fees, reduce services, or both. The Census finance survey reports intergovernmental aid from states to local governments and local property-tax collections. Reviewing both helps residents see how changes in state policy flow through to local bills.
On decision days, the Fed posts a policy statement and holds a press conference with the Chair. The statement, vote, and policy rate target are released at a set time, and supporting materials, like the economic projections, are posted on the same page. Anyone can follow along live and read the materials immediately after. The Fed also provides minutes, speeches, and the semiannual Monetary Policy Report to Congress for a fuller picture.
The Fed’s balance sheet shows the securities it holds and the reserves it creates, along with liabilities like currency in circulation. When the Fed buys securities, its assets and bank reserves rise; when it allows holdings to mature or sells them, the balance sheet shrinks. The weekly H.4.1 release provides a transparent, line-by-line accounting so the public can monitor the size and composition of the portfolio and how it changes with policy.
The Fed sets a target interest rate known as the Federal funds rate, the rate banks charge each other for overnight lending. When the Fed raises rates, borrowing generally becomes more expensive across the economy; when it lowers rates borrowing tends to become cheaper. Bank (Lenders) adjust their rates according to the Fed Funds rate for mortgages, car loans, and credit cards based on funding costs, competition, and your credit profile. The Fed does not set your specific loan rate, but its decisions influence the overall level of interest rates in the market. Adjustable-rate interest products often move sooner, while fixed-rate mortgages reflect broader bond-market yields that also respond to Fed actions and inflation expectations based on the risk and maturity of the product.
The Fed aims for price stability and maximum employment over time, not perfect control month to month. By keeping inflation low and predictable on average, the Fed seeks to foster a stable environment where families and businesses can plan, save, and invest with fewer surprises. For households, this means designing a plan that can handle normal rate cycles, making Financial decisions based on sound planning and not overt actions due to Fed policies and over-reliance on short-term forecasts. However, managing employment and infaltion is tricky and the Fed does not always achieve its aims. Households should be aware of the mechanics of the Fed and how they can impact financial markets. The Fed’s strategy statement explains how it evaluates inflation and the labor market when making decisions.
Interest-rate changes can influence global capital flows and exchange rates. Higher U.S. rates often strengthen the dollar by attracting investment; lower rates can have the reverse effect. These movements affect import prices, trade, and financial conditions worldwide and Central banks around the world react to these changes. While the Treasury sets U.S. exchange-rate policy, the Fed’s monetary policy indirectly influences currency values. Official dollar indexes and foreign-exchange rates are published so the public can track changes over time.
The federal budget process is an annual cycle that determines how the U.S. government will raise revenue and spend money. It begins with the President’s budget request, which is submitted to Congress early in the year. This document outlines the administration’s policy and funding priorities for the upcoming fiscal year, which starts on October 1st.
After the President’s submission, Congress develops its own budget plan, called a budget resolution, which sets overall spending limits. Then, the House and Senate Appropriations Committees work to pass 12 separate appropriations bills to fund different parts of the government. For these bills to become law, they must be passed by both chambers of Congress and signed by the President. If this isn’t done by October 1st, Congress must pass a temporary measure, called a continuing resolution, to avoid a government shutdown. (See article)
The Federal government is required to account for and report its “environmental liabilities,” which are the estimated future costs of cleaning up contamination from past government activities. These liabilities represent a significant financial commitment for the taxpayer.
The largest environmental liabilities are related to the estimated costs of cleaning up nuclear waste from decades of weapons production, which is managed by the Department of Energy, and cleaning up hazardous materials at active and closing military bases, managed by the Department of Defense. These estimated costs are calculated based on federal accounting standards and are reported in the annual financial statements of the relevant agencies and in the consolidated Financial Report of the U.S. Government.
References
- U.S. Government Accountability Office. (2023, January 26). *Environmental Liabilities: DOE and DOD Report Significant Liabilities, but Their Estimates Should Be More Complete and Transparent (GAO-23-105364)*.
- Federal Accounting Standards Advisory Board. (n.d.). *Statement of Federal Financial Accounting Standards 5: Accounting for Liabilities of the Federal Government*.
The government accounts for the cost of federal credit and loan programs, such as student loans or small business loans, using a method established by the Federal Credit Reform Act of 1990. Instead of recording the full loan amount as a cost, the government calculates and records the estimated long-term cost of the loan to the taxpayer at the time the loan is made.
This cost, known as the “subsidy cost,” is the estimated net present value of all future cash flows from the loan, including principal and interest payments from borrowers, minus government expenses like defaults and administrative costs. This approach provides a more accurate picture of the long-term financial impact of credit programs on the federal budget. The specific subsidy rates and data are published in the President’s Budget.
The government budgets for disasters and emergencies through a combination of regular annual appropriations and supplemental funding. The Federal Emergency Management Agency (FEMA) receives an annual appropriation for its Disaster Relief Fund (DRF), which is used to pay for the response to and recovery from declared major disasters.
When a major catastrophe occurs, like a large hurricane or wildfire, the costs can exceed the amount available in the DRF. In these cases, Congress often passes a “supplemental appropriation” bill to provide additional, emergency funding outside of the regular budget process. This approach provides the flexibility needed to respond to unpredictable events while maintaining a base level of funding for routine disaster response.
The government decides which programs to fund or cut through a multi-step process starting with the President’s budget proposal, which reflects administration priorities and agency requests. This proposal is submitted to Congress, where the House and Senate Budget Committees draft budget resolutions setting overall spending and revenue targets. These resolutions provide a framework but do not allocate specific funds.
Next, appropriations committees in both chambers review agency needs and negotiate funding through 12 subcommittees that draft appropriations bills. Congress debates, amends, and passes these bills, which the President must sign to become law. Mandatory programs follow separate authorizing laws for eligibility and funding levels, so changes require legislative action beyond the annual appropriations. This complex process balances priorities, fiscal constraints, and politics, with oversight from agencies like the Congressional Budget Office and opportunities for public engagement. (See our Article)
The U.S. Treasury Department’s Office of Tax Analysis and the congressional Joint Committee on Taxation (JCT) are the primary bodies that estimate federal tax revenue. They use sophisticated economic models to forecast how much money the government will collect based on current tax law, economic conditions, and other factors. These revenue estimates are a key parts of the annual budget process.
“Tax expenditures” are provisions in the tax code that reduce the amount of taxes owed by individuals or businesses, such as deductions, credits, and exclusions. They are essentially spending programs that run through the tax system. The Treasury Department and the JCT are required to publish an annual list of tax expenditures, estimating how much revenue is forgone for each provision. This allows policymakers and the public to see the cost of these tax breaks, similar to how they would view direct spending programs.
Continuity of Operations (COOP) planning is the effort within the federal government to ensure that essential functions can continue to be performed during a wide range of emergencies, including natural disasters, accidents, or attacks. The goal of COOP is to maintain the essential operations of government with minimal disruption.
Each federal agency is required to develop a COOP plan that identifies its essential functions and includes procedures for relocating to alternate facilities, ensuring access to vital records, and communicating with staff and stakeholders during an emergency. The Federal Emergency Management Agency (FEMA) provides guidance and assistance to agencies on developing and maintaining their COOP plans, ensuring that the entire federal government is prepared to operate under any circumstances.
User fees are fees, charges, and assessments that the federal government levies on the public for specific goods, services, or benefits. The principle behind user fees is that the costs of certain government services should be borne by the individuals or businesses who directly benefit from them, rather than by the general taxpayer.
Examples of user fees include entrance fees at national parks, patent application fees, and fees for customs inspections. The authority to charge user fees is typically granted by Congress in legislation. The Office of Management and Budget (OMB) provides guidance to federal agencies on how to set and manage user fees, and the revenue collected is often dedicated to funding the specific activity for which the fee is charged.
The federal government measures employee engagement and satisfaction primarily through the annual Federal Employee Viewpoint Survey (FEVS). This government-wide survey, administered by the Office of Personnel Management (OPM), asks federal employees about their experiences with their agency, their leaders, and their overall work environment.
The survey results provide valuable insights into morale, engagement, and job satisfaction across the government. OPM publishes the results publicly on a website called UnlockTalent.gov, allowing you to see government-wide trends and individual agency scores. Agency leaders use this data to identify areas for improvement and develop strategies to build a more engaged and effective workforce.
The Federal government uses performance information to connect budget decisions with the actual results that agencies are achieving. The goal is to move beyond simply funding programs and instead invest in what works. The Government Performance and Results Act (GPRA) of 1993 and its subsequent modernization require agencies to set strategic goals, measure their performance, and report on their progress.
This performance information is a key component of an agency’s annual budget request. Agencies must describe how the funding they are requesting will help them achieve their performance goals. The Office of Management and Budget (OMB) reviews this information when developing the President’s Budget, and it is also available to Congress and the public on Performance.gov. This process is designed to create a more evidence-based and results-oriented approach to federal spending.
Government borrowing influences overall demand for credit and the supply of Treasury securities, which help set benchmark interest rates throughout the economy. When investors expect higher inflation or larger deficits, long-term Treasury yields can rise, affecting mortgage and auto loan rates. No single factor determines consumer rates, but the Congressional Budget Office (CBO) and the Federal Reserve track how deficits, inflation, and monetary policy interact. Following these official releases helps households understand why rates move.
The National debt affects future generations by increasing the government’s interest costs, which can crowd out other budget priorities and reduces government flexibility to respond to recessions or emergencies. As debt grows, it can push up long-term interest rates, making borrowing more expensive for businesses and consumers. This hampers economic growth and may burden future taxpayers with repaying debt accumulated for current spending.
However, the full impact depends on factors like economic growth, interest rates, and policy decisions. Managing the debt responsibly is crucial to preserving economic stability and opportunity for coming generations. Transparent projections and analyses by the Congressional Budget Office (CBO) and Government Accountability Office (GAO) highlight these trade-offs, encouraging informed public discussion about the risks and fiscal options ahead.
Prices can differ by channel because of shipping, fees, promotions, retail competition, and regionalized differences. A sale online may not appear in a nearby store, and the reverse can also be true. In some situations larger online stores or retail institutions may have access to lower cost goods that they can use to lower costs to the consumer creating a price delta. The CPI includes both online and in-store purchases when measuring inflation. That means the official data reflect where people actually shop, supporting fair comparisons and public accountability.
Comparing government spending across countries provides context for the size and scope of the public sector. A common way to make this comparison is to look at total government spending as a percentage of the country’s Gross Domestic Product (GDP). This measures how much of a nation’s total economic output is directed by the government.
Organizations like the Organisation for Economic Co-operation and Development (OECD) and the International Monetary Fund (IMF) collect and publish this data. Historically, total government spending in the U.S. as a share of GDP has been lower than the average for most other developed, high-income countries, particularly those in Europe, which often have more extensive social programs.
The Consumer Price Index measures average price changes for a fixed “market basket” of goods and services bought by urban consumers. BLS collects prices from stores (including online), housing surveys, and service providers. Every month, BLS publishes the methods and detailed tables so anyone can check the numbers. The consistent methodology overtime paints a picture of how much inflation has changed. This transparency lets residents, journalists, and students verify how inflation is measured.
The President proposes a budget prepared by the Office of Management and Budget (OMB). Congress then writes and passes spending and revenue bills through its budget, authorizing, and appropriations processes; the President signs or vetoes them. Agencies execute the enacted laws, and Treasury reports the actual cash in and out. For a plain-English view of where money comes from and where it goes, use OMB’s Budget of the U.S. Government and Treasury’s Monthly Treasury Statement and USAspending.gov, or the Smarter Citizen app by the Tax Project which provide interactive tables, charts, and download-ready data the public can audit. (See our Article)
The Judicial Branch of the U.S. government, which includes the Supreme Court, lower federal courts, and various administrative offices, is funded through the annual appropriations process, just like federal agencies. The Judiciary prepares a budget request each year, which is submitted to the President and Congress for consideration.
The budget for the Judiciary is included in the Financial Services and General Government appropriations bill, one of the 12 annual spending bills passed by Congress. This funding covers the salaries of judges and court staff, the costs of operating federal courthouses, and other expenses necessary to maintain the federal court system. You can find the Judiciary’s annual budget request and related documents on the website of the U.S. Courts.
The Legislative Branch, which includes the U.S. Senate, the House of Representatives, and various support agencies like the Library of Congress and the Government Accountability Office (GAO), is funded through an annual appropriations bill. This bill, known as the Legislative Branch Appropriations Act, is one of the 12 annual spending bills that Congress passes to fund the federal government.
Each chamber of Congress and each legislative agency develops its own budget request, which is then considered and debated as part of the appropriations process. This self-funding mechanism is established by the Constitution to ensure the Legislative Branch remains an independent and co-equal branch of government. Detailed information on legislative branch funding can be found in the appropriations bills and committee reports, which are public documents available on Congress.gov.
To compare, use the official U.S. net interest outlays for FY2024 and line them up against each country’s GDP in current U.S. dollars. Treasury’s MTS , OMB Historical Tables, and the Federal Reserve FRED site report annual net interest; the World Bank publishes country GDP. Sort the GDP list and count how many exceed the U.S. net-interest dollar amount. Citing these primary sources keeps the comparison consistent and reproducible.
In FY 2024 FRED data shows Net Interest from the US at $1.1 trillion, and using the Worldbank GDP figures for 2024 the Net Interest on debt alone would be the 20th largest country in the world (including the US) by GDP ahead of Switzerland.
References
- U.S. Department of the Treasury. (n.d.). Monthly Treasury Statement—Net interest outlays.
- Office of Management and Budget. (n.d.). Historical tables—Function 900 (net interest).
- World Bank. (n.d.). World Development Indicators: GDP (current US$).
- Federal Reserve. (n.d.) Federal Government Current Expenditures: Interest Payments.
Millions of Americans work in the public sector across Federal, State, and Local governments. The Federal government employs over 2 million civilian workers. However, the vast majority of government employees in the U.S. work at the State and Local levels. There are approximately 19 million State and Local government employees.
The U.S. Census Bureau conducts a regular Census of Governments, which provides detailed statistics on the number of government employees at the state and local levels, broken down by function, such as education, hospitals, and police protection. The Bureau of Labor Statistics (BLS) also tracks government employment as part of its monthly employment situation report, providing another key data source.
The federal government employs over 2 million civilian workers across a wide range of occupations. The central resource for data on the federal workforce is the Office of Personnel Management (OPM), which serves as the chief human resources agency for the federal government.
OPM regularly publishes data and statistics on the federal workforce through its FedScope database. This public tool allows you to explore data on federal employee demographics, occupations, agency, location, and salary. You can also find information on the official salary tables for federal employees, known as the General Schedule (GS) pay scale, on the OPM website. This data provides a transparent look at the composition and cost of the federal workforce.
The amount the government pays in interest on the national debt is a significant and growing expense in the federal budget. This figure, often referred to as “net interest,” can change based on the total amount of debt and the interest rates on the Treasury securities the government has issued. In 2024 Net Interest surpassed military spending as the 3rd largest budget item in the Federal Budget.
You can find the most current and historical data on interest payments from several official sources. The U.S. Department of the Treasury publishes monthly and annual financial statements that detail interest costs. The Congressional Budget Office (CBO) and the Office of Management and Budget (OMB) also provide detailed data and future projections for net interest costs in their regular budget reports, such as the CBO’s Budget and Economic Outlook and the President’s annual Budget.
Per-person spending equals total federal outlays divided by the U.S. population for that year. You can compute this by pairing OMB’s outlay totals with the Census Bureau’s (or BEA’s) population series. In FY 2024 Federal spending was $6.8 trillion, and the last 2020 Census there were 331 Million Americans equating to over $20 thousand per year in Federal Spending per capita. Total Federal, State, and Local Government revenue was estimated over $11 trillion equating to over $30 thousand per capita in total government spending per capita.
There is no single official “per taxpayer” figure because “taxpayer” can mean returns filed, individuals, or households. Since the IRS does not count individuals, most common reporting use the number of returns filed as a proxy for taxpayer. A simple approach would be to divide total outlays (spending) by the number of federal individual income tax returns filed in that year. The IRS Statistics of Income (SOI) tables report counts of returns; combine those with OMB outlays to compute your preferred measure, and state your definition clearly. For example in FY 2024 the Federal government spent $6.8 trillion and there were roughly 154 million returns in IRS SOI data released in 2025 for 2022 data. That would equate to around $44 thousand per taxpayer.
The shares change over time, but you can see the breakout in the Office of Management & Budget (OMB) Historical Tables and in the Budget summary tables, which break out Defense, Health, Social Security, Income Security, transportation, and more. In general the large Entitlement and Mandatory spending programs, like Social Security and Medicaid/Medicare and Interest on Debt, make up the vast majority of Federal funding (> 60%). Discretionary spending is all other categorie make up the remainder with Defense around 13%. Infrastructure spending is not broken out but falls across several categories including Transportation, Energy, and Commerce and is thought to be under 5% in total. For a program-by-program view, USAspending.gov allows you to explore spending by budget function, agency, and award type with downloadable source data.
Inflation is not a tax passed by law, but it does reduce what each dollar buys. Although, some people question when Government Money Creation outruns demand that this is inflationary and hence by some maybe considered a hidden tax. In general when prices rise faster than income, purchasing power falls, which can feel like a “stealth” cost. To limit this effect, some items are indexed to inflation (for example, federal tax brackets). Checking official adjustments each year and tracking prices with Bureau of Labor Statistics tools, and metrics like the Consumer Price Index (CPI) are the best places to check for inflation.
No, Social Security is not a Ponzi scheme. A Ponzi scheme is a type of investment fraud where returns are paid to earlier investors using capital from newer investors, rather than from legitimate investment profits. These schemes require an ever-expanding base of new investors and are designed to collapse, leaving the newest participants with nothing.
Social Security is a social insurance program run by the government with the defined public purpose of providing a foundation of income for retired workers, disabled individuals, and their families. Its finances are transparent and publicly reported every year, and it has operated for over 80 years. While it uses contributions from current workers to pay current beneficiaries, its purpose, structure, and legal foundation are fundamentally different from a fraudulent scheme. (See our article)
The Fed is independent in its policy decisions so it can focus on long-term economic goals, not short-term politics. Fed Governors are appointed by the President and confirmed by the Senate for long terms; the Fed independently funds itself through its operations rather than annual appropriations. Independence comes with accountability: the Fed Chair testifies before Congress, the Fed publishes minutes, forecasts, and audits, and financial statements are reviewed by external auditors. Their actions are not without scrutiny or oversight. Congress sets the goals (“dual mandate”) and can amend the Federal Reserve Act.
Headline inflation includes all items. Core inflation leaves out food and energy because those prices swing more from month to month, which can mask the broader trend. Looking at both helps separate temporary spikes from lasting changes. These are just different tools to help policy makers understand the environment and make clear and transparent decisions.
“Apportionment” is the process by which the Office of Management and Budget (OMB) distributes budgetary authority granted by Congress to federal agencies. Agencies typically cannot spend their entire annual budget on day one; instead, OMB apportions funds, usually on a quarterly basis, to ensure they are used in a controlled and orderly manner throughout the year.
“Reprogramming” is the shifting of funds within the same budget account from one purpose to another. For example, an agency might reprogram funds from a delayed project to a more urgent one. These actions are governed by rules set by Congress, and significant reprogrammings often require congressional notification or approval. Apportionment documents are generally not available to the public in a central database, but information on significant reprogramming actions can sometimes be found in agency budget documents or congressional reports.
A Continuing Resolution (CR) is a temporary measure used during the Budget Process, a stopgap funding measure used to prevent a government shutdown when the regular appropriations bills have not been passed by the October 1st deadline. A CR typically continues funding for federal agencies at the previous year’s levels for a specific period, allowing more time for Congress to negotiate a final budget.
An “omnibus” appropriations bill is a single, large piece of legislation that combines many or all of the 12 individual annual appropriations bills into one package. Lawmakers often use this method to finalize government funding when time is short. While an omnibus can be an efficient way to avoid a shutdown and pass a budget, it is often criticized for its lack of transparency, as its large size makes it difficult to scrutinize individual spending items.
Cross-Agency Priority (CAP) Goals are a limited number of high-priority, ambitious goals that the administration has set to be achieved through the coordinated effort of multiple federal agencies. These goals are designed to tackle complex challenges that cannot be solved by a single agency working alone, such as cybersecurity, customer service, or infrastructure permitting.
The CAP goals are a key part of the government’s performance management framework and are updated every four years with each new presidential term. The Office of Management and Budget (OMB) oversees the CAP goals, and progress is tracked and reported publicly on Performance.gov. This approach fosters a more collaborative and results-oriented government by focusing leadership attention on a few key outcomes that require interagency cooperation.
Independent agencies and government corporations are part of the executive branch but exist outside of the 15 Cabinet-level departments. “Independent agencies” are created by Congress to handle specific issues and are often designed to be insulated from political influence. Examples include the National Aeronautics and Space Administration (NASA), the Environmental Protection Agency (EPA), and the Central Intelligence Agency (CIA).
“Government corporations” are agencies that are structured like private businesses and are designed to perform a commercial function. They are typically self-supporting and generate their own revenue. Prominent examples include the U.S. Postal Service (USPS) and the Tennessee Valley Authority (TVA).
The Federal Reserve regulates banks and uses reserve requirements to ensure the safety and stability of the financial system. The reserve requirement is the minimum amount (expressed as a ratio) that banks are required to hold of certain deposits. However, since March 2020 the Fed has set the reserve requirement ratios to zero percent, and it now relies on other tools like the interest rate paid on reserve balances and open-market operations to guide short-term rates and credit conditions. Even without formal requirements, banks hold balances at the Fed for payments and liquidity. The Fed’s current toolset is published and updated so the public can track how policy is implemented.
A single-bid contract is a government contract that is awarded after only one company submitted an offer. This is different from a competitive contract, where multiple companies bid for the work, which typically helps ensure a fair price and good value for the government.
Single-bid contracts can pose a risk to taxpayers. When there is no competition, the government may end up paying a higher price than necessary, and there is less incentive for the company to provide high-quality goods or services. While there are sometimes legitimate reasons for a single-bid award, such as when only one company possesses the required expertise, government watchdogs like the GAO closely monitor the use of non-competitive contracts to identify potential waste and ensure the government is getting the best value possible.
Special funds and trust funds are two types of accounts used in the federal budget to designate money for specific purposes. “Trust funds” are accounts designated by law to hold funds collected and spent for specific programs, such as Social Security and Medicare. These are financed through dedicated taxes and other collections, like payroll taxes.
“Special funds” are also accounts for revenues that are designated for specific purposes. The term is often used for accounts that are not designated as trust funds. An example is the fund that collects revenues from the Federal gasoline tax to be spent on highway construction. The use of these dedicated funds ensures that certain revenues are used only for their intended purpose.
The Fed is accountable to Congress and the public. It publishes decisions, minutes, and financial statements; the Chair testifies twice a year, and the Government Accountability Office and the Fed’s Inspector General conduct audits and reviews (with certain limits around active policy deliberations). Independent outside auditors review the System’s financial statements annually, and the Fed provides detailed information about its operations, balance sheet, and emergency lending, when applicable. The Feds actions and policies are highly scrutinized by Bankers, Economists, and Policy Analysts with a wide array of feedback mechanisms.
The President’s Cabinet is composed of the heads of the 15 executive departments, who are appointed by the President and confirmed by the Senate. These departments are the primary units of the executive branch and are responsible for administering a wide range of federal laws and programs.
The 15 Cabinet departments are the Departments of Agriculture, Commerce, Defense, Education, Energy, Health and Human Services, Homeland Security, Housing and Urban Development, the Interior, Justice, Labor, State, Transportation, the Treasury, and Veterans Affairs. The heads of these departments, known as Secretaries (except for the head of the Department of Justice, who is the Attorney General), serve as key advisors to the President.
The federal government uses several types of appointments to hire employees, each with different rules and durations. The most common type is a “career appointment,” which is a permanent position with no set end date. These are competitive service positions where employees gain job security and full benefits after a probationary period.
Other types include “term appointments,” which last for a defined period, typically one to four years, and “temporary appointments,” for short-term work lasting a year or less. The government also uses special hiring authorities for specific groups, like veterans or individuals with disabilities. Finally, “political appointments” are used to fill leadership and policy-making positions for an administration, and these appointments typically end when the President leaves office.
Key financial performance indicators for state and local governments include measures like the general fund balance as a percentage of expenditures, trends in recurring revenues versus operating expenses, and debt service requirements as a share of annual income. Additional important indicators are liquidity (such as cash and investments compared to current liabilities), debt per capita, and the funding status of pensions and other long-term obligations. Looking at these figures over several years provides a clearer picture than any single year snapshot, helping spot persistent strengths or looming trouble.
These indicators, often available in annual budgets, Comprehensive Annual Financial Reports (CAFRs), and pension reports—help residents, analysts, and policymakers assess how resilient and well-managed their government is. Comparative data from federal datasets and municipal disclosures platforms, like EMMA or the Stanford Municipal Finance Dashboard, allow benchmarking against similar governments, making it easier to spot outliers or best practices and support informed public oversight
The Federal civilian workforce is spread across dozens of agencies, but a few large departments account for the majority of employees. The Department of Veterans Affairs is the largest civilian agency, employing hundreds of thousands of people, largely to operate its extensive healthcare system.
The Department of Homeland Security is another of the largest agencies, with a vast workforce that includes customs and border protection, immigration services, and transportation security. The Department of the Treasury, which includes the IRS, and the Department of Justice are also among the biggest federal employers. You can find precise, up-to-date employment numbers for all agencies through the OPM’s FedScope database. Additionally the DOGE Workforce website has a easy to navigate tool.
The Hatch Act is a federal law that limits certain political activities of federal employees to ensure the civil service remains non-partisan. The goal is to prevent government workers from being politically coerced and to ensure that federal programs are administered in a fair and impartial manner.
While federal employees retain the right to vote and express their opinions privately, the law restricts their active participation in partisan political campaigns. For most federal employees, this means they cannot run for partisan office, solicit campaign contributions, or engage in political activity while on duty. The U.S. Office of Special Counsel (OSC) is the independent agency responsible for enforcing the Hatch Act and provides detailed guidance on its website.
“Inherently governmental work” refers to functions that are so intimately related to the public interest that they must be performed by federal government employees, not by private contractors. The official definition states that these are activities that require the exercise of discretion in applying government authority or making value judgments in making decisions for the government.
Examples of inherently governmental functions include determining agency policy, commanding military forces, and awarding government contracts. The distinction is critical for ensuring that core government responsibilities are carried out by public servants who are accountable to the public, rather than by private entities. The Federal Activities Inventory Reform (FAIR) Act requires agencies to identify these functions to prevent them from being improperly outsourced.
Government “Entitlement” spending programs are legally required by the government to make payments to any individual, business, or unit of government that meets the eligibility criteria established in the law. The term signifies a legal right to benefits for those who qualify.
Familiar examples of entitlement programs include Social Security, Medicare, and Veterans’ disability benefits. Congress does not set an annual spending limit for these programs. Instead, the total amount spent each year is determined automatically by the number of eligible recipients and the benefit amounts they are entitled to receive under the law. Entitlements make up about two thirds of the Federal Budget.
When Social Security is described as a “Pay-as-you-go” (or PayGo) system, it means that the contributions from today’s workers and employers are used directly to pay for the benefits of current recipients. The money you pay in taxes today is not stored in a personal account for your own retirement; instead, it goes out almost immediately to pay current retirees, disabled individuals, and their families.
While it is largely a PayGo system, it is not purely so. In past years, Social Security collected more in taxes than it paid out in benefits. These surplus funds were saved in trust funds, which now help supplement payroll tax revenue to pay for benefits. However, the core of the system is this continuous transfer of funds from the current working generation to the current generation of beneficiaries.
Central banks maintain price stability, support employment, supervise banks, and operate core payment systems. In crises, they can act as lender of last resort to prevent system-wide failures. The U.S. Federal Reserve serves these roles for the United States under the Federal Reserve Act, with responsibilities and decision processes published for public review.
A central bank is a public authority that issues a nation’s currency, guides interest rates, and helps keep the financial system safe and reliable. By fostering price stability and a sound payments network, it provides a stable foundation for saving, investing, and commerce. Most countries maintain central banks because stable money and payments are public goods. International organizations and national central banks publish materials that explain these roles and why independence and transparency matter.
A Continuing Resolution (CR) is a temporary law that keeps agencies funded at existing or specified levels when regular appropriations have not been enacted on time. It prevents a funding gap between the expiration of the last appropriation and a new budget being approved thus allowing operations to continue. The Congressional Research Service (CRS) explains typical provisions, durations, and impacts on agencies and grants. Understanding CRs helps citizens track why deadlines matter in the budget cycle.
A fiscal note estimates how a proposal would change revenues, spending, staffing, or fees. In many states and cities, legislative rules require a fiscal note before a vote so elected officials and the public can see the likely costs. State legislative websites explain their fiscal note process and publish the notes online. The National Conference of State Legislatures provides a helpful overview and links to state practices.
FOIA (pronounced: FOY-uh) stands for the Freedom of Information Act, a federal law that gives any person the right to request access to records from federal agencies. The law is based on the principle that the public has a right to know about the workings of their government.
FOIA requests are important to government transparency because they allow citizens, journalists, and researchers to obtain documents and data that are not otherwise available from the government. By allowing the public to request information on everything from agency policies and internal reports to contract details and spending records, FOIA empowers people to oversee government activities, uncover potential wrongdoing, and hold public officials accountable.
A “means-tested” program is a type of government benefit that is only available to individuals and families whose income and financial assets fall below certain levels. In simple terms, these programs are designed to provide assistance specifically to those with demonstrated financial need.
This is different from universal programs like Social Security or Medicare, where eligibility is based on factors like age or work history, not current income. Common examples of means-tested programs include Medicaid, the Supplemental Nutrition Assistance Program (SNAP, or food stamps), and Supplemental Security Income (SSI). The specific income and asset limits for eligibility vary by program and can also differ from state to state.
All bonds are debt instruments, the issuer is taking on debt. A municipal bond is debt issued by state or local government, and is essentially a loan from investors to the debt issuer. Governments issue bonds to finance long term and capital intensive projects such as schools, water systems, and roads, spreading costs over the assets’ useful life. Some bonds are tax-exempt for investors; others are taxable. Official statements, continuing disclosures, and trade data for municipal bonds are posted on the SEC-regulated EMMA system. Reviewing these filings shows the purpose of the bond, repayment sources, and risks in plain view for residents.
A special assessment is a charge on properties that receive a specific benefit, such as a new sidewalk, street lighting district, or sewer connection. Unlike a general property tax, it is limited to parcels that benefit. State laws govern when and how assessments can be levied. The Census Bureau’s finance classifications define special assessments and how they are reported, which helps residents compare practices across places.
A Thrift Savings Plan (TSP) is a retirement savings and investment plan for Ffederal employees and members of the uniformed services, similar to a 401(k) plan in the private sector. It allows Federal workers to save and invest for retirement by contributing a portion of their pay, which can grow tax-deferred or tax-free (in the case of the Roth TSP option).
The government contributes to employees’ TSP accounts as well, providing an automatic 1% contribution and matching employee contributions up to an additional 4%, for a total of a 5% government match if the employee contributes at least 5%. Participants can choose how to invest their money from a selection of different investment funds, ranging from a secure government securities fund to various stock and bond index funds.
An earmark is a provision inserted into a discretionary spending bill that directs funds to be spent on a specific project, often in a particular lawmaker’s home state or district. Earmarks became controversial due to concerns that they were used for wasteful “pork-barrel” projects and were not always awarded based on merit.
In 2011, Congress placed a ban on earmarks. However, in 2021, the practice was brought back in a revised and more transparent form, now referred to as “Community Project Funding” in the House and “Congressionally Directed Spending” in the Senate. Under the new rules, lawmakers must publicly post their requests online and certify that they have no financial interest in the projects. This allows for dedicated funding for local projects, but with stricter transparency requirements than in the past.
An Intergovernmental Personnel Act (IPA) assignment is a temporary arrangement that allows for the movement of employees between the federal government and non-federal entities. Under an IPA, a Federal employee can go on a temporary assignment to a state or local government, university, or other eligible non-profit organization, and vice versa.
The purpose of the IPA program is to facilitate the sharing of skills and knowledge between different levels of government and other organizations. For example, a federal scientist might work at a university for a year to collaborate on research, or a city manager might take a temporary assignment at a federal agency to share expertise in urban policy. The program is managed by the Office of Personnel Management (OPM) and is designed to improve cooperation and strengthen all levels of government.
Budget reconciliation is a special legislative process that Congress can use to pass certain bills related to spending, revenues, and the debt limit more easily. Its key feature is that it allows a bill to pass the Senate with a simple majority of 51 votes, bypassing the usual 60-vote requirement needed to end a filibuster.
The process can only be used on legislation that changes federal spending or revenues, and it is governed by a strict set of rules. Reconciliation begins with Congress passing a budget resolution that contains instructions for committees to develop legislation achieving specific budgetary outcomes. Because it offers a way around the filibuster, this process has been used to pass significant and often controversial laws, such as major tax reform or healthcare legislation.
COLA stands for Cost-of-Living Adjustment. It is an annual increase applied to certain federal benefits to help them keep pace with inflation, which is the general rise in the cost of goods and services. For programs like Social Security and federal employee retirement, COLAs help ensure that the purchasing power of benefits is not diminished over time.
The Social Security Administration calculates the COLA each year based on a specific formula set by law. The adjustment is determined by the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure of inflation from the Bureau of Labor Statistics. If there is no inflation, there is no COLA. The official formula and annual COLA announcements are published on the Social Security Administration’s website.
Deflation is a sustained fall in overall prices. It can sound positive because purchasing some items become cheaper, however falling prices can lead people to other negative impacts to the Economy. Deflation can cause people to delay purchases as they wait for prices to fall, impacting spending and businesses in a downward spiral. It can also make debts harder to repay if wages deflate at the same rate as prices as your debts do not deflate. Because of these risks, Central banks try to avoid prolonged deflation, and some level of inflation is seen as healthy for an Economy. Transparent policy and clear communication help the public understand why slight, steady inflation is usually preferred.
Gross Domestic Product (GDP) is the total monetary value of all the finished goods and services produced within a country’s borders in a specific time period. It is the most common measure of a country’s overall economic activity and health. A growing GDP generally signifies a healthy, prosperous, expanding economy, while a shrinking GDP indicates economic contraction and often rising hardship.
GDP is crucial for the federal budget for two main reasons. First, tax revenues are closely tied to economic activity. When GDP is growing, people and businesses earn more, leading to higher tax collections for the government. Second, economists and policymakers often measure the significance of federal spending, deficits, and debt by comparing them to the size of the overall economy. Expressing these figures as a percentage of GDP provides important context for understanding their scale, efficiency, and sustainability over time.
Hyperinflation is an extreme and rapid rise in prices that destroys the value of money. It often follows severe money creation and a loss of confidence in the fiat currency. Classic examples include Weimar Germany and Zimbabwe. The effects of hyperinflation can be devastating to individuals and countries as money, holdings, savings lose substantial value in a rapid period of time. These cases show why strong Fiscal Management, transparent governement, and prudent spending matter for protecting savings and wages.
Inflation is the general rise in prices across the economy. You feel it most in everyday items like food and fuel because those purchases are frequent and basic expenses. The Bureau of Labor Statistics (BLS) tracks these changes each month, and the Energy Information Administration (EIA) posts weekly fuel price updates. These datapoints likely inform citizens what they already know from their experience purchasing goods and services.
Congress directs the Fed to pursue maximum employment and stable prices (inflation), with moderate long-term interest rates as a by-product of those goals. These objectives are known as the “dual mandate.” The Fed explains how it interprets these goals in its strategy statement, including the reasoning for focusing on inflation that averages 2 percent over time and labor-market conditions consistent with sustainable growth.
The Anti Deficiency Act is a fundamental federal law that prohibits federal agencies from spending money that they do not have. The law makes it illegal for a federal employee to make or authorize an expenditure or obligation that exceeds the amount available in an appropriation or fund.
This law is a cornerstone of congressional control over Federal spending. It ensures that the Executive branch cannot spend more than Congress has approved, preventing agencies from running up unauthorized debts. Violations of the Anti Deficiency Act can result in administrative discipline, such as suspension or removal from office, as well as potential criminal penalties. The law is the primary reason that a lapse in appropriations leads to a government shutdown, as agencies are legally barred from incurring most obligations without funding.
The Assistance Listing, formerly known as the Catalog of Federal Domestic Assistance (CFDA), is a comprehensive government-wide catalog of all federal programs that provide assistance or benefits to the American public. Each program is assigned a unique five-digit number for tracking and identification purposes.
It creates a standardized way to organize and identify thousands of federal programs, from student loans and small business grants to scientific research and housing assistance. For citizens, non-profits, and state or local governments looking for federal funding, the Assistance Listing provides a clear, searchable index of what programs exist, what their objectives are, and who is eligible to apply. The official repository for this information is now part of the System for Award Management (SAM.gov).
The Digital Accountability and Transparency Act of 2014, or DATA Act, is a landmark open government law designed to make federal spending data more accessible, searchable, and reliable for the public. The law required the U.S. Treasury and the Office of Management and Budget (OMB) to establish government-wide standards for how financial information is reported.
This is a major step for transparency because it ensures all federal agencies report their spending data in a consistent, standardized way. Before the DATA Act, it was very difficult to get a clear, consolidated view of federal spending. Now, all of this standardized data is collected and published on USAspending.gov, allowing citizens, researchers, and watchdog groups to more easily follow taxpayer dollars from appropriation by Congress all the way to the final recipient. (See our article)
The debt ceiling, or debt limit, is the total amount of money that the U.S. government is legally authorized to borrow to meet its existing legal obligations. These obligations include paying for things like Social Security and Medicare benefits, military salaries, interest on the national debt, and tax refunds. Raising the debt ceiling does not authorize new spending; it simply allows the government to pay for the spending that Congress has already approved.
If the debt ceiling is not raised, the U.S. Treasury cannot issue new debt and could run out of cash to pay its bills. This could lead to a default on the nation’s obligations, which would have significant negative economic consequences. It could trigger a financial crisis, dramatically increase inflation and interest rates for consumers and businesses, and severely damage the global standing and creditworthiness of the United States and the value of the US Dollar.
For states, divide state debt outstanding by state gross domestic product (GDP). The Census Bureau reports state debt, and the Bureau of Economic Analysis publishes GDP by state. This yields a transparent ratio you can compare year to year. There is no standard “city GDP” nationwide. For large areas, BEA reports metropolitan-area GDP; for individual cities that are not metro anchors, a proxy may not exist. Use local debt from the Census finance survey and compare to metro GDP with care, noting the difference in boundaries.
Both recessions and depressions are characterized by a significant decline in economic activity, but a depression is much more severe and lasts longer. A recession is a widespread economic downturn that typically lasts for several months. It is often defined as two consecutive quarters of negative Gross Domestic Product (GDP) growth and is usually accompanied by rising unemployment and falling retail sales.
A depression is a much deeper and more prolonged slump in economic activity. While there is no strict definition, it is often defined as four or more consecutive quarters of negative GDP. A depression involves a more severe drop in GDP, typically by more than 10 percent, and very high unemployment that lasts for many years. The Great Depression of the 1930s is the most famous example. Recessions and Depressions are officially declared by the National Bureau of Economic Research (NBER).
“Authorization” and “appropriation” are two distinct steps in the federal funding process. An authorization act is a law that establishes or continues a federal agency, program, or activity. This law sets the program’s terms and conditions and provides a recommended funding level, but it does not actually provide the money.
An appropriation act is the law that gives a federal agency the legal authority to actually spend money. Congress must pass an appropriation bill each year to fund the programs that have been authorized. In short, an authorization act creates the program and sets a ceiling on how much can be spent, while an appropriation act provides the actual cash. A program can be authorized but will have no funding until an appropriation is passed.
Cash and accrual accounting are two different methods of recording financial transactions. “Cash accounting” recognizes transactions only when cash is actually received or paid out. For the federal budget, this is the primary method used, meaning that revenues are counted when collected and expenses (outlays) are counted when paid.
“Accrual accounting” recognizes revenue when it is earned and expenses when they are incurred, regardless of when the cash actually changes hands. This method provides a more complete picture of long-term financial commitments. The consolidated financial statements of the U.S. government are prepared on an accrual basis, which is important for understanding the full long-term costs of programs like federal employee pensions and loan guarantees.
Demand-pull inflation happens when overall spending runs ahead of what the economy can produce. Cost-push inflation occurs when production costs—such as energy or wages—rise and businesses pass those costs through to prices. In real life, both forces can operate at once. Understanding the source helps citizens evaluate which policies impact pricing. For example a major increase in wages might create some cost push inflation, or a run on paper towels may cause a shortage in supply causing demand pull inflation.
Direct spending is money the government pays out under laws—either mandatory (like Medicare) or annually appropriated (like most agency operations). Tax expenditures are special exclusions, deductions, credits, or preferential rates in the tax code that reduce taxes for certain activities or groups. OMB and the Joint Committee on Taxation (JCT) publish annual tax-expenditure lists and totals. Reviewing both cash outlays and tax expenditures gives a fuller picture of federal spending and taxable deducations.
Mandatory spending (sometimes called “direct spending”) is set by laws for programs like Social Security, Medicare/Medicaid, Interest on National Debt; spending automatically occurs unless the underlying laws change and represent the majority of the Federal Budget (over 60%). Discretionary spending, as the name implies, is subject to change including elimination. This includes areas that many people might think are mandatory like Defense and Education. Each year discretionary budget proposals are sent to Congressional appropriations and covers things like Defense, Education, and most Agency operations.
Property tax is charged on the value of real property (land and buildings) and is a primary local revenue source for cities, counties, and school districts. Sales tax applies to purchases of goods (and in some places services); it is typically collected at the point of sale and shared by states and localities. State income tax is based on individual or business income and is usually collected by the state, with some localities levying their own income taxes. You can see how much each tax contributes in your area by reviewing your state’s and locality’s revenue tables and the Census Bureau’s finance survey, which reports property, sales, and income tax collections by government and by year.
Tax avoidance and tax evasion both involve reducing a tax bill, but one is legal and the other is illegal. “Tax avoidance” is the legal use of the tax code to reduce the amount of tax that is owed. This involves legitimately taking advantage of deductions, credits, and other provisions that were intentionally placed in the tax law by Congress to encourage certain behaviors, such as saving for retirement or investing in a business.
“Tax evasion,” on the other hand, is the illegal act of not paying taxes that are legally owed. This involves intentionally misrepresenting or concealing income, overstating deductions, or failing to file a tax return at all. Tax evasion is a crime and can result in significant financial penalties and even imprisonment.
The Federal funds rate is the overnight interest rate banks charge one another for reserves; it is targeted by the Fed to guide overall financial conditions. The prime rate is a benchmark many banks use when pricing certain loans to their best customers. The prime rate is set by banks, not by the Fed, and typically moves in the same direction as the federal funds rate and is generally considered the Fed funds rate plus a spread. Your actual loan rate depends on the product and your credit, not simply the prime rate itself.
The Federal Reserve’s mission is set by Congress and it is to promote stable prices and maximum employment known as the dual mandate. It does this mainly through Monetary policy through interest rates, open market operations managing bond liquidity, bank supervision, and keeping the nation’s payment systems running safely. The Fed is a public institution within the U.S. government, created by the Federal Reserve Act. It is designed to be operationally independent when making policy, but accountable to the public and Congress through reports, testimony, audits, and published decisions.
The Federal Reserve is the primary Government organization managing inflation. It does not control Market Supply and Demand, but it uses Interest rates to effect macro changes in the economy. It raises or lowers interest rates and adjusts its securities holdings to influence borrowing, spending, and overall price pressure. Congress and the Administration also affect demand and supply through taxes, spending, and regulation. Clear, timely releases from these institutions help the public evaluate actions aimed at price stability.
The National Debt is the total amount the federal government owes to creditors, built up over many years. It rises when the government runs budget deficits and falls when it runs surpluses. A Deficit occurs when there is a shortfall in the annual Federal budget for a single year when spending exceeds revenues. Treasury tracks the debt daily in their Debt to the Penny site, while OMB and CBO report the yearly deficit and projections so residents can see trends and drivers.
Agencies are audited by independent Inspectors General (IGs), the Government Accountability Office (GAO), and external auditors for financial statements. These bodies review internal controls, spending, and program results. Reports are public and searchable—Oversight.gov aggregates IG reports across agencies, and GAO publishes its findings and recommendations. This system lets citizens trace issues and track corrective actions.
Whistleblower protection laws are designed to shield federal employees who report evidence of government waste, fraud, abuse, or other misconduct. The Whistleblower Protection Act prohibits federal agencies from retaliating against an employee for making a protected disclosure. Retaliation can include actions like being fired, demoted, or reassigned.
An employee who believes they have faced retaliation for whistleblowing can file a complaint with the U.S. Office of Special Counsel (OSC). The OSC is an independent agency that investigates these complaints and can seek corrective action on behalf of the employee from the Merit Systems Protection Board (MSPB). This process is crucial for holding the government accountable by encouraging employees to speak up without fear of reprisal.
A rainy-day fund (also called a budget stabilization fund) is savings set aside to cushion revenue shortfalls or emergencies without severe cuts or tax spikes. Rules usually limit how much can be deposited or withdrawn and under what conditions. CRS and GAO describe how these funds work and how states used them in past downturns. Your state’s budget documents disclose balances and any planned deposits or withdrawals.
Federal Executive Boards (FEBs) are forums for communication and collaboration among federal agency leaders located in major metropolitan areas outside of Washington, D.C. There are 28 FEBs across the country, and they serve as a vital link between federal agencies at the local level and the President’s administration.
The mission of the FEBs is to increase the effectiveness of the federal government by strengthening coordination among federal agencies. They play a key role in implementing presidential initiatives at the local level, coordinating emergency response and continuity of operations planning, and sharing best practices among federal managers. The FEB network helps to create a more unified and effective federal presence in communities across the nation.
The Chief Financial Officers (CFO) Act of 1990 was a landmark piece of legislation designed to reform and improve financial management across the federal government. The Act established a Chief Financial Officer position in major federal agencies and created a new leadership structure to oversee federal financial practices.
The primary goal of the CFO Act was to bring more accountability and reliability to federal financial reporting. It requires the 24 largest federal agencies to produce annual audited financial statements, similar to those produced by public companies. This requirement has been a driving force for improving financial discipline and providing more transparent and useful information about the costs and performance of government programs.
The Congressional Budget Office (CBO) is a non-partisan agency that provides independent analyses of budgetary and economic issues to support the congressional budget process. The CBO does not make policy recommendations; instead, its mission is to provide Congress with objective, impartial information that helps lawmakers make informed decisions about the budget and the economy.
CBO’s key responsibilities include providing official cost estimates for legislation, publishing economic forecasts, and producing long-term projections of federal spending and revenue. All of CBO’s reports, cost estimates, and data are publicly available on its website, CBO.gov. This resource is essential for understanding the financial impact of proposed legislation and the nation’s long-term fiscal health.
CBO is a nonpartisan legislative branch agency that provides Congress with budget and economic analysis. It does not make policy or decide what to fund. CBO estimates the cost of proposed bills, analyzes the budget outlook, and publishes methods and data so the public can review how the numbers were derived. (See our Article)
The Federal Accounting Standards Advisory Board (FASAB) is the body responsible for establishing the generally accepted accounting principles (GAAP) for the U.S. federal government. Its mission is to develop accounting standards that improve the transparency and usefulness of federal financial reporting.
FASAB is an independent board, sponsored by the Government Accountability Office (GAO), the Department of the Treasury, and the Office of Management and Budget (OMB). The accounting standards it sets are used by federal agencies to prepare their annual financial statements and are essential for the preparation of the consolidated Financial Report of the U.S. Government. FASAB’s work is critical for ensuring the accountability and integrity of federal financial management.
The Federal Labor Relations Authority (FLRA) is an independent administrative federal agency that oversees the labor-management relations program for most federal employees. Its role is similar to that of the National Labor Relations Board (NLRB) for the private sector. The FLRA’s mission is to ensure that federal employees have the right to organize and bargain collectively, and to promote stable and productive relationships between federal agencies and their employee unions.
The FLRA is responsible for resolving disputes and complaints that arise under the Federal Service Labor-Management Relations Statute. This includes conducting union elections, deciding on unfair labor practice complaints, and resolving disputes over the negotiability of bargaining proposals. The agency’s work is central to defining and protecting the collective bargaining rights of the federal workforce.
The Federal Reserve, often called the Fed, is the central bank of the United States. Its primary roles are to conduct the nation’s monetary policy, promote the stability of the financial system, and supervise and regulate banks. The Fed’s key objectives, so called “dual mandate”, are to foster maximum employment and stable prices (inflation), which it pursues by influencing interest rates and credit conditions in the economy.
Unlike most federal agencies, the Federal Reserve is not funded by congressional appropriations. Its operations are financed primarily from the interest it earns on its portfolio of U.S. government securities. After covering its operational expenses, the Fed transfers the rest of its earnings to the U.S. Treasury. This independent funding structure is designed to insulate the Fed from short-term political pressures when it makes monetary policy decisions.
The General Services Administration (GSA) serves as the primary procurement and property management agency for the federal government. Often described as the government’s “landlord” and “procurer,” the GSA’s main role is to provide centralized support services to federal agencies, allowing them to focus on their core missions.
The GSA is responsible for managing the vast portfolio of federal buildings and real estate, procuring goods and services for federal agencies, and managing the federal vehicle fleet. It also plays a key role in developing government-wide policies on topics like travel, property management, and technology. By centralizing these functions, the GSA aims to improve efficiency, reduce costs, and create a more effective federal government.
The Government Publishing Office (GPO) is the official publisher for the federal government. Its core mission is to “Keep America Informed” by producing, preserving, and distributing official information from all three branches of the federal government.
The GPO is responsible for printing iconic documents like the Congressional Record, the Federal Register, and U.S. passports. In the digital age, its role has expanded to include managing GovInfo.gov, the official website that provides free public access to a vast collection of government documents, including congressional bills, federal regulations, and presidential papers. The GPO plays a vital role in ensuring public access to the workings of the government, which is a cornerstone of a transparent democracy.
The Merit Systems Protection Board (MSPB) is an independent, quasi-judicial agency in the executive branch that serves as the guardian of the federal merit systems. Its primary mission is to protect federal employees from unfair or arbitrary personnel actions and to ensure that employment decisions are based on merit, not partisan politics.
A key function of the MSPB is to hear and decide appeals from federal employees who have been disciplined, demoted, or removed from their jobs. It also hears whistleblower retaliation complaints and conducts studies of the civil service to ensure it is being managed effectively and fairly. The MSPB’s work is essential for maintaining an effective and non-partisan federal workforce.
The term “National Debt Commission” most often refers to the National Commission on Fiscal Responsibility and Reform, also known as the Simpson-Bowles Commission, which was created by President Obama in 2010 and ended the same year. The commission was a bipartisan group tasked with identifying policies to improve the nation’s long-term fiscal situation.
The commission produced a report with a wide range of recommendations to reduce the national debt, including changes to spending on entitlement programs and tax reform. While the commission’s specific plan was not enacted into law, its work significantly raised the public profile of the nation’s long-term debt challenges and has continued to influence the debate over fiscal policy.
The Fed maintains twelve regional Federal Reserve Banks that carry out many of the System’s day-to-day functions: supervising banks, operating payment services, conducting research, and engaging with local communities. The regional Fed presidents participate in FOMC meetings and vote on a rotating basis. The Board of Governors in Washington D.C. provides national oversight, writes regulations, and chairs the FOMC. Together, the Board and the Banks make up the Federal Reserve System created by Congress.
The Bureau of the Fiscal Service is a bureau within the U.S. Department of the Treasury that serves as the government’s central financial agent. It plays a critical role in managing the finances of the United States by handling the collection, disbursement, and reporting of all federal money.
The Fiscal Service is responsible for collecting federal revenues like taxes and customs duties, disbursing payments for all federal agencies, and managing the financing of the national debt through the sale of Treasury securities. It also produces the official financial statements for the entire U.S. government. In short, the Bureau of the Fiscal Service acts as the bookkeeper and cashier for the federal government.
The U.S. Mint and the Bureau of Engraving and Printing (BEP) are two bureaus within the Department of the Treasury that are responsible for producing the nation’s currency. The U.S. Mint is responsible for producing all U.S. coins (circulating, numismatic, and bullion), while the BEP designs and manufactures all U.S. paper currency.
While they both make money, they are distinct organizations. The Mint’s operations are primarily funded through the sale of its coin products, while the BEP operates on a fee-for-service basis, charging the Federal Reserve for the cost of producing new banknotes. Together, these two agencies ensure that the public has a safe, reliable, and accessible supply of physical currency.
Think tanks are, often non-profit, organizations that conduct research and advocacy on public policy issues, and they play an influential role in the federal budget process. They provide in-depth analysis, data, and policy recommendations on a wide range of spending and tax issues from various ideological perspectives.
Think tanks across the political spectrum, such as the Economic Policy Institute, Brookings Institution, the Heritage Foundation, and the Committee for a Responsible Federal Budget, regularly publish reports, testimonies, and budget models. Their work informs and influences policymakers, the media, and the public, shaping the debate over fiscal policies.
The Senior Executive Service (SES) is a corps of senior leaders who serve in key positions just below the top presidential appointees in the executive branch. SES members are the major link between these political appointees and the rest of the federal workforce. They are responsible for leading and managing major government programs and initiatives.
Established in 1978, the SES was designed to create a cadre of highly experienced and effective public service leaders who can be moved between different agencies to address the government’s most pressing challenges. They are selected for their leadership qualifications and are expected to drive results, serve as a catalyst for change, and build a high-performing federal workforce. Data on the SES is available from the Office of Personnel Management (OPM).
The “Tax Gap” is the difference between the total amount of taxes legally owed to the government and the amount that is actually paid on time. This gap arises from several sources, including underreporting of income, underpayment of taxes, and failure to file a tax return altogether. Reducing the tax gap is a key goal for the IRS to ensure fairness in the tax system.
The IRS periodically conducts research and publishes estimates of the size and sources of the tax gap. These detailed reports provide the best available data on tax compliance. You can find these tax gap studies on the IRS website. The analysis helps policymakers and the public understand the scale of tax noncompliance and informs strategies for improving tax enforcement and administration.
Mandatory spending refers to federal programs that are funded by laws other than the annual appropriations bills. These programs are considered “mandatory” because the government is legally obligated to make payments to any person or entity that meets the eligibility requirements set by law. This type of spending is not decided by Congress each year in the same way as discretionary spending for defense or education.
The largest mandatory programs are Social Security, Medicare, and Medicaid. Other examples include unemployment benefits and veterans’ benefits. These programs were established to provide a consistent social safety net, and their annual cost is determined by how many people qualify and the benefit formulas in the law, not by a fixed budget set by Congress.
Start with official, ad-free sources: BLS (inflation data and explanations), BEA (official price measures), the Federal Reserve (policy and education), Treasury (I Bonds and TIPS), and the Financial Literacy and Education Commission’s MyMoney.gov (personal-finance basics). These sites publish methods, data, and tools the public can reuse. They support transparent civic education, letting residents learn more about inflations effect on Personal Finances.
References
- U.S. Bureau of Labor Statistics. (n.d.). CPI home.
- U.S. Bureau of Economic Analysis. (n.d.). Price indexes and inflation.
- Federal Reserve Education. (n.d.). Classroom and consumer resources.
- U.S. Department of the Treasury. (n.d.). TreasuryDirect.
- Financial Literacy and Education Commission. (n.d.). MyMoney.gov.
Supply chain shocks, energy, and key inputs can raise supplier costs and limit supply, pushing prices up. Energy has a large impact on pricing as it is an input for almost all goods. Supply shocks, like Pandemic-era bottlenecks, are a recent example of event based inflation. Using metrics like CPI, PCE can track overall inflation, and the New York Fed’s Global Supply Chain Pressure Index tracks stress over time, letting the public see when pressures are easing or worsening. Open indicators like these can help you assess the siutation.
The Office of Management and Budget (OMB) is an agency within the Executive Office of the President, and it plays a central role in overseeing and managing the Federal budget. OMB’s primary mission is to assist the President in meeting policy, budget, management, and regulatory objectives.
OMB is responsible for developing and submitting the President’s annual budget proposal to Congress. After Congress passes appropriations bills, OMB manages the administration of the budget, apportioning funds to the agencies and overseeing their spending. OMB also provides oversight for government performance, agency management, procurement, financial management, and information technology, ensuring that the executive branch operates efficiently and in line with the President’s priorities.
The Government Accountability Office (GAO) and agency Inspectors General (IGs) serve as key government watchdogs, promoting transparency and accountability. The GAO is an independent, non-partisan agency that works for Congress. Often called the “congressional watchdog,” it audits and investigates federal programs and spending to ensure public funds are being used Efficiently and Effectively.
Each federal agency also has its own Office of Inspector General (OIG), an independent unit within the agency that works to prevent and detect waste, fraud, and abuse. IGs conduct audits and investigations specifically related to their agency’s programs and operations. You can find all GAO reports on GAO.gov, and reports from most IGs are consolidated on Oversight.gov, as well as on their individual agency websites.
These three terms represent distinct stages in the government spending process. “Budget authority” is the first step; it is the legal permission, granted by Congress, for a federal agency to spend money. Think of it as the total amount of funds approved for a specific purpose.
An “obligation” is the second step. This occurs when an agency makes a legal commitment to spend that money, such as by signing a contract, awarding a grant, or hiring staff. An “outlay” is the final step, representing the actual payment of money. This happens when the government’s bank, the U.S. Treasury, issues a check or electronic payment to pay for the obligation. Typically Outlay is Government parlance for Spending.
The terms “deficit” and “debt” are related but describe two different things. The federal budget deficit is the difference between the amount of money the government spends and the amount it collects in revenues in a single fiscal year. If the government spends more than it takes in, it runs a Deficit. If it takes in more than it spends, it has a Surplus. As of 2025 it has been over 20 years since the US had a Surplus.
The National Debt is the total amount of money the government owes from all past years combined. Each year’s deficit gets added to the existing debt. So, the debt is the accumulation of all past deficits, minus any past surpluses. Think of it like a credit card: a Deficit is when you spend more than you earned in a month, and the Debt is your total outstanding balance.
Federal spending is divided into two main categories: mandatory and discretionary. “Mandatory spending” is controlled by laws and not via annual appropriation acts and are largely automatic. It includes programs like Social Security and Medicare. The amount spent is determined by the number of people who qualify, not by a yearly congressional vote. Mandatory spending, mostly entitlements, takes up about two thirds of the Federal budget.
“Discretionary spending” is the portion of the budget that Congress determines annually through the 12 appropriations bills. This is where lawmakers decide how much to spend on a wide range of government activities, including National defense, education, transportation, and foreign aid. Unlike mandatory spending, discretionary spending is subject to a fixed, yearly budget limit.
“Headcount” and “Full-Time Equivalent” (FTE) are two different ways of counting the number of people working in an organization. “Headcount” is a simple count of all individual employees, regardless of how many hours they work. If an agency has 100 employees, its headcount is 100.
“FTE” is a calculation that measures the number of hours worked rather than the number of employees. One FTE is equivalent to one full-time employee’s work hours for a year. For example, two employees who each work half-time would be counted as one FTE. The government often uses FTEs for budgeting and workforce planning because it provides a more accurate measure of the total labor capacity and cost.
References
- Office of Management and Budget. (2018, July). *Circular No. A-11: Preparation, Submission, and Execution of the Budget*.
- U.S. Government Accountability Office. (2011, March). *Federal Workforce: OPM and Agencies Need to Strengthen Efforts to Identify and Close Mission-Critical Skills Gaps (GAO-11-232T)*.
Creating more money can push prices up when dollars grow faster than the economy’s ability to make goods and services. In the U.S., the Federal Reserve, not Congress, manages the money supply and interest rates with a goal of stable prices and maximum employment. When demand is higher than supply for long enough, inflation rises. For civic oversight, rely on official releases and open data rather than headlines. Watching both Consumer price indexes and the Fed’s policy statements helps residents judge whether inflation risks are building and why.
This is understandable as when the Fed speaks it can have a significant impact on markets. Because of this the Fed uses language more attuned to Investment bankers and Economists than the lay person. Fortunately, the Federal Reserve publishes plain-language guides, statements, and videos that explain how it sets interest rates, why price stability matters, and how decisions are made. The “Monetary Policy” pages include the policy framework, meeting materials, and educational resources. For context at a glance, read the FOMC’s “Statement on Longer-Run Goals and Monetary Policy Strategy,” which summarizes what the Fed is trying to achieve and the indicators it watches.
Federal agencies are required by law to create and publish strategic plans and annual performance reports to ensure accountability and transparency. An agency’s Strategic Plan outlines its long-term goals and objectives, typically covering a four-year period. The Annual Performance Plan (APP) sets specific, measurable targets for the upcoming year, and the Annual Performance Report (APR) details the agency’s progress in meeting those targets.
These documents are key to understanding an agency’s mission, priorities, and effectiveness. You can typically find them on the agency’s own website, often in a section titled “About Us,” “Budget and Performance,” or “Strategic Plan.” Additionally, Performance.gov is a central federal website that provides a government-wide view of agency goals and progress.
Federal advisory committees are groups established to provide advice and recommendations to the President and executive branch agencies. To ensure transparency, the Federal Advisory Committee Act (FACA) requires that information about these committees be made available to the public.
The General Services Administration (GSA) is responsible for government-wide oversight of these committees and maintains a comprehensive public database. This database, which can be found on the GSA’s website, allows you to search for information on all federal advisory committees, including their members, meetings, and reports. This resource provides a transparent view into how outside experts and stakeholders provide input into government decision-making.
The primary source for detailed information on federal contracts is USASpending.gov. This official U.S. government website is designed to provide transparency on federal awards, including contracts, grants, and loans. You can search for contract data by keyword, agency, recipient, location, or a variety of other filters.
For each contract, the site provides information such as the awarding agency, the name of the vendor, the amount of the award, the period of performance, and a description of the goods or services procured. For those interested in more specific federal contracting data, the Federal Procurement Data System (FPDS) is the underlying repository of all federal contracting data, though USAspending.gov is generally more user-friendly for the public.
The Office of Personnel Management (OPM) is the main source for data and statistics on federal employee retirements. OPM’s FedScope database allows the public to view detailed information on workforce trends, including the number of retirements across the government each year. The data can be filtered by agency, occupation, and other demographic factors.
This data is important for workforce planning, as it helps agencies forecast future attrition and identify potential skills gaps as experienced employees leave the workforce. OPM and the Government Accountability Office (GAO) also publish reports that analyze retirement trends, such as “retirement waves” in certain occupations, and assess how well agencies are preparing for these changes.
The main resource for finding information on federal grants is USASpending.gov. This official government website tracks all federal spending, allowing the public to see how taxpayer money is used. You can search the site for grant awards using various criteria, such as the recipient’s name, the funding agency, the location of the project, or the assistance listing number (formerly CFDA number).
The site provides details on each grant, including the award amount, the purpose of the funding, and the recipient organization. Another key resource is Grants.gov, which is the central portal for finding and applying for federal grant opportunities. While Grants.gov is focused on the application process, it also offers information about available funding programs across the government.
The General Services Administration (GSA) is the primary source for data on the Federal government’s vast portfolio of real property and assets. The GSA is required to maintain a comprehensive, publicly available database of all Real Estate property under the custody and control of federal agencies.
This information can be accessed through the Federal Real Property Profile (FRPP), an online data system managed by the GSA. The FRPP provides detailed information on federal buildings, land, and other structures, including their location, size, and use. This data is essential for transparency and for the efficient management of the government’s real estate assets.
Detailed data on Federal tax receipts is available from several official government sources. For the most up-to-date information, the U.S. Department of the Treasury publishes daily and monthly Treasury statements that provide a running tally of government revenues, broken down by source.
For more comprehensive analysis and historical data, the Congressional Budget Office (CBO) publishes regular reports on federal revenues as part of its Budget and Economic Outlook. Additionally, the Office of Management and Budget (OMB) includes detailed historical tables on tax receipts in the President’s annual Budget Request. Finally, the Internal Revenue Service (IRS) provides extensive statistics on tax collections based on filed tax returns.
The Office of Personnel Management (OPM) is the official source for data on labor-management relations in the federal government, including union membership. OPM is required to maintain and publish data on the number of Federal employees represented by a bargaining unit (a union) and the number who are dues-paying members. USA Facts using BLS data reports that Union membership is 5.5 times more likely in the Public sector vs. Private sector.
OPM releases this information in annual reports, which can be found on its website. These reports provide a government-wide overview and detailed breakdowns by agency, showing the extent of union representation across the federal workforce. The data allows for public transparency into the role and presence of labor unions within the civil service.
The Internal Revenue Service (IRS) provides extensive data on its audit and enforcement activities in its annual “IRS Data Book.” This publication is the official source for statistics on the operations of the IRS and includes detailed information on the number of tax returns filed, the number of audits conducted, and the results of those audits.
The Data Book breaks down audit rates by different types of taxpayers, such as individuals and corporations, and by income levels. It also includes data on collection activities, civil penalties, and criminal investigations. The Government Accountability Office (GAO) and the Treasury Inspector General for Tax Administration (TIGTA) also periodically publish reports that analyze IRS enforcement trends and effectiveness.
The Bureau of Labor Statistics (BLS) provides long-run Consumer Price Index (CPI) data and easy-to-use charting tools. You can download the series or build custom views without special software. The Bureau of Economic Analysis publishes another official price measure used by policymakers called Personal Consumption Expenditure (PCE), and the Federal Reserve’s FRED website offers long historical data for both. Comparing them helps citizens and students see the past from two trusted sources.
Start with GAO evaluations and agency IG reports, which audit major projects for cost, schedule, and performance. USAspending.gov shows contract and grant awards tied to each program so you can see obligations and recipients. For legislation that launched or changed a project, CBO’s cost estimates explain the expected budget impact at the time of passage, making it easier to compare plans with outcomes.
The primary agency responsible for ethics and conflict-of-interest policies for federal employees in the executive branch is the U.S. Office of Government Ethics (OGE). The OGE website is the main resource for information on the rules of conduct, financial disclosure requirements, and post-employment restrictions for federal workers.
“Revolving door” policies are specific ethics rules designed to prevent former federal employees from unfairly capitalizing on their government service and connections after they leave for the private sector. These post-employment restrictions are detailed in federal law and explained in guidance from the OGE. For the legislative branch, the House and Senate have their own ethics committees that establish and enforce similar rules for members of Congress and their staff.
Financial disclosure reports for senior officials in the executive branch are collected and managed by the U.S. Office of Government Ethics (OGE). These reports, which are intended to prevent conflicts of interest, require high-level officials to publicly disclose their personal financial information, including assets, income, and liabilities.
The OGE maintains a public database where you can access the financial disclosure reports for officials at the White House and most executive branch agencies. For members of Congress and their senior staff, financial disclosure reports are filed with the Clerk of the House and the Secretary of the Senate and are often made available to the public through their respective websites or by non-governmental watchdog groups.
The Office of Management and Budget (OMB) is the primary source for comprehensive historical data on federal government spending and revenues. As part of the President’s annual Budget Request, the OMB publishes a detailed set of “Historical Tables” that provide data on the budget going back many decades.
These tables present a wide range of information, such as spending and revenues as a percentage of GDP, breakdowns of spending by category and agency, and data on deficits and the national debt. You can find and download these tables on the White House OMB website. The Congressional Budget Office (CBO) and the Treasury’s Bureau of the Fiscal Service also provide extensive historical financial data on their websites.
Start with CBO (budget analysis and program costs), GAO (audits and evaluations), and agency Inspectors General (program-specific reviews). These sources are nonpartisan and publish methods and data so their conclusions can be checked. Pair these with transparency portals like USAspending and Performance.gov to trace dollars to results. Using these together supports fact-based civic discussions.
The Federal Employees Health Benefits (FEHB) program provides health insurance to federal employees, retirees, and their families. It is the largest employer-sponsored health insurance program in the United States. The program is administered by the Office of Personnel Management (OPM).
Detailed information about the FEHB program, including available health plans, premiums, and benefits, can be found on the OPM website. OPM provides extensive guidance for federal employees to help them choose a plan that best fits their needs, particularly during the annual “Open Season” enrollment period. The website also contains information for the general public about the structure and administration of this major federal benefits program.
The primary source for daily information on the U.S. debt is the TreasuryDirect website, specifically its “Debt to the Penny” feature, which is managed by the U.S. Department of the Treasury. This site provides the most up-to-date figure for the total public debt outstanding.
For broader context, including information on the annual budget deficit (the difference between spending and revenue in a single year) and historical data, several government agencies provide excellent resources. The Treasury’s monthly and annual statements, the Congressional Budget Office’s (CBO) Budget and Economic Outlook, and the historical tables in the President’s annual Budget Request all provide comprehensive data and analysis on the federal deficit and debt.
The adopted budget or a compensation schedule usually lists pay for elected officials and staff. Some states require centralized salary reporting portals. City charters or ordinances may also set pay and benefits and are posted by the clerk. Use the USA.gov directory to find your city’s official website or clerk’s office, then search for “budget,” “pay schedule,” or “compensation.” These are primary public records.
References
The rules governing federal lobbying activities are primarily established by the Lobbying Disclosure Act of 1995. This law requires lobbyists to register with the Secretary of the Senate and the Clerk of the House of Representatives and to file quarterly reports on their activities. These reports disclose who they are lobbying for, what issues they are working on, and how much money is being spent.
For public transparency, this information is collected and made available through searchable online databases. The two primary official sources are the Senate Lobbying Disclosure Act Database and the House Lobbying Disclosures database. Additionally, non-partisan organizations like the Center for Responsive Politics (OpenSecrets.org) compile this data and present it in a user-friendly format, allowing the public to easily track lobbying spending by company, industry, and issue.
The consolidated financial statements for the entire U.S. government are published annually in a document called the Financial Report of the United States Government. This report, which is similar to the annual 10K financial report of a large public corporation, provides a comprehensive overview of the government’s financial position and operations.
The report is prepared by the Bureau of the Fiscal Service in coordination with the Office of Management and Budget (OMB) and is audited by the Government Accountability Office (GAO). It is a key document for government transparency, providing a detailed accounting of federal assets, liabilities, revenues, and costs. You can find and download the latest and past editions of the Financial Report from the website of the Bureau of the Fiscal Service.
The Fed releases meeting minutes about three weeks after each FOMC meeting, summarizing the discussion and the range of views. These minutes help readers understand the reasoning behind each decision. Full transcripts and meeting materials are published with a five-year lag. The public can browse calendars, statements, minutes, projections, and historical records in one place.
The President’s annual Budget Request to Congress is a key public document that outlines the administration’s spending priorities and policy proposals for the upcoming fiscal year. This request, and the historical data that accompanies it, provides a detailed look at the nation’s finances.
The primary source for these documents is the website of the Office of Management and Budget (OMB). Each year, the OMB publishes the full budget request, along with supporting materials like analytical perspectives, historical tables, and appendices. The Government Publishing Office (GPO) also maintains an archive of Presidential budgets, providing access to data from both current and past administrations.
The primary source for inflation data in the United States is the Bureau of Labor Statistics (BLS). The BLS calculates and publishes the Consumer Price Index (CPI), which is the most widely used measure of inflation. The CPI tracks the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Inflation has a significant impact on the federal budget on both the spending and revenue sides. On the spending side, inflation increases the cost of government purchases and also triggers automatic Cost-of-Living Adjustments (COLAs) for programs like Social Security. On the revenue side, inflation can push individuals into higher tax brackets and increase nominal wages, which can lead to higher income and payroll tax collections.
The official source for unemployment data in the United States is the Bureau of Labor Statistics (BLS). Each month, the BLS releases its “Employment Situation Summary,” which includes the national unemployment rate and a wealth of other data on the labor market. This report is based on the Current Population Survey, a monthly survey of households.
The BLS website provides detailed unemployment data, which can be broken down by age, gender, race, educational attainment, and geographic area. You can find current and historical data, as well as analysis of labor market trends. Additionally, state-level unemployment data is available from state workforce agencies, often in partnership with the BLS.
The annual Trustees Reports for Social Security and Medicare are assessments of the financial condition and long-term outlook for these programs. They are prepared each year by the Boards of Trustees for each program and submitted to Congress.
The reports are available for download, as well as past reports and data, from official government websites. The Social Security Trustees Report is available on the Social Security Administration (SSA) website, typically in the section for the Office of the Chief Actuary. The Medicare Trustees Report can be found on the website of the Centers for Medicare & Medicaid Services (CMS).
The primary source for data on diversity and inclusion in the federal workforce is the Office of Personnel Management (OPM). OPM maintains a comprehensive database, FedScope, which allows the public to view detailed demographic data of the federal workforce, including statistics on race, ethnicity, gender, and disability.
In addition to OPM, the Equal Employment Opportunity Commission (EEOC) publishes annual reports on the federal workforce that focus on equal employment opportunity statistics. These reports provide data and analysis on representation rates in leadership positions and other workforce trends. Together, these resources provide a transparent look at the government’s progress toward building a workforce that reflects the diversity of the nation.
Data on federal hiring and recruiting is primarily managed and published by the Office of Personnel Management (OPM). The OPM’s public database, FedScope, is a key resource that provides detailed statistics on federal hiring trends. You can explore data on new hires by agency, occupation, location, and demographic characteristics.
Additionally, USAJOBS.gov is the official website for listing federal job openings. While its main purpose is for job seekers, the site’s data and trends can provide insight into which agencies are hiring and what types of skills are in demand. For broader analysis, the Government Accountability Office (GAO) often publishes reports on federal hiring practices and challenges, which are available on GAO.gov.
The primary, official resource for viewing data on improper payments across the federal government is PaymentAccuracy.gov. This website, managed by the U.S. Department of the Treasury, consolidates information on payments made in the wrong amount, to the wrong recipient, or for the wrong reason.
The site provides a transparent look at government-wide improper payment rates and dollar amounts, and allows you to explore the data by agency or specific program. It also details the root causes of these errors and explains the actions that agencies are taking to reduce improper payments in the future. This data is critical for holding the government accountable for responsible stewardship of taxpayer money.
The Office of Management and Budget (OMB) issues detailed guidance documents, known as circulars, that provide instructions to federal agencies on a wide range of management, budget, and accounting practices. These circulars are essential for ensuring consistency and transparency in how the government operates and reports information.
Two of the most important circulars for financial transparency are Circular A-11, which provides guidance on preparing the President’s budget and managing its execution, and Circular A-136, which sets the requirements for federal agency financial statements. You can find and download all OMB circulars directly from the White House website, on the page for the Office of Management and Budget.
The federal government is required to track and report on “improper payments,” which are payments made in the wrong amount, to the wrong recipient, or for the wrong reason. This data is a critical measure of how well agencies are managing taxpayer funds and is essential for government transparency.
The main resource for this information is PaymentAccuracy.gov, an official website managed by the U.S. Department of the Treasury. This site provides government-wide data on improper payment rates and amounts, identifies the root causes of errors, and describes the actions agencies are taking to fix the problems. You can explore the data by agency, program, or year to see where challenges in payment accuracy exist.
The best place to see which companies receive the most in federal contracts is USASpending.gov. This official government website provides detailed, searchable data on all federal spending. It has a “Top Recipients” section that allows you to see which contractors have received the most money from the federal government over various time periods.
You can filter the data by year, agency, and other criteria to see rankings of top contractors for the entire government or for a specific department like Defense or Health and Human Services. The site provides details on the total amount of money obligated to each company and allows you to drill down to see the individual contracts that make up those totals. This provides a transparent view of where federal contracting dollars are flowing.
The Office of Personnel Management (OPM) is the primary source for government-wide data on federal workforce planning metrics. Through its public database, FedScope, you can access data on hiring, attrition (the rate at which employees leave the workforce), retirements, and other workforce trends. This allows you to analyze the dynamics of the federal workforce by agency, occupation, and demographics.
Identifying and addressing “skills gaps” the difference between the skills the workforce has and the skills it needs is a critical part of workforce planning. While there isn’t a single public dashboard for skills gaps, the Government Accountability Office (GAO) frequently publishes reports on this topic, often highlighting mission-critical skills gaps in areas like cybersecurity and acquisition. Agencies also discuss their workforce challenges in their annual performance reports.
The U.S. government gets its money from several different sources to fund public services. The single largest source of revenue is the individual Income tax, which is the tax people pay on their wages, salaries, and other income.
The second largest source is Payroll taxes, which are dedicated taxes on earnings that fund Social Security and Medicare. The third main source is the Corporate Income tax, which is the tax that businesses pay on their profits. Other, smaller sources of revenue include excise taxes (on items like gasoline and tobacco), customs duties, and earnings from the Federal Reserve.
The U.S. Treasury pays for government spending by collecting tax income, fees, and other revenues. When these sources aren’t enough to cover all spending that Congress has approved, the Treasury issues new debt (Treasury bills, notes, and bonds) that are sold to investors, banks, and even foreign governments. The money raised from these auctions is deposited into the Treasury’s account at the Federal Reserve and then used to fund public programs, payments, and services.
The Treasury does not simply “create” money out of thin air; it can only spend what is authorized by law and funded through tax revenues or selling debt. The debt ceiling is the legal limit set by Congress on how much total debt the Treasury can issue. Once this ceiling is reached, the Treasury cannot borrow more to pay bills unless Congress votes to raise or suspend the limit, which temporarily caps how much funding can be raised beyond incoming revenue.
Two main demographic trends have the largest impact on the future costs of major benefit programs like Social Security and Medicare – 1) An aging population 2) Longer life expectancies. As the large Baby Boomer generation continues to retire, the number of people drawing benefits is growing much faster than the number of workers paying into the system.
At the same time, advances in medicine and healthcare mean that people are living longer, so they receive benefits for more years than in previous generations. This combination of more beneficiaries and longer benefit periods puts significant long-term financial pressure on these systems, as more money is paid out each year while a smaller workforce is available to contribute through payroll taxes. Over the long term this may effect benefits and/or the taxes required.
The U.S. Treasury controls the physical currency (bills and coins) that make up about 11% of the M2 money supply. This currency is literally printed and minted by the Treasury and distributed through the banking system for everyday public use. However, this is just a small part of the total money in the economy.
The Federal Reserve controls most of the money supply by managing bank reserves and conducting open market operations, mainly buying and selling government securities. When the Fed buys these securities, it creates electronic credits that increase banks’ reserve balances, enabling banks to lend more and expand the broader money supply (like checking and savings deposits), which make up the majority of M2 (Almost 90%). So, while the Treasury issues physical cash, the Fed primarily controls the creation and regulation of money through its influence on banking reserves and credit.
The National debt is owned by a wide range of individuals, institutions, and foreign governments that hold U.S. Treasury securities. It is broadly divided into two categories: debt held by the public and intragovernmental debt. “Debt held by the public” includes Treasury securities purchased by individuals, corporations, pension funds, banks, and foreign governments. It represents the money the U.S. government has borrowed from external lenders.
“Intragovernmental debt” refers to the Treasury securities held in government accounts, such as the Social Security and Medicare trust funds. When these trust funds collect more revenue than they need to pay out in benefits, the surplus is invested in special Treasury securities, essentially meaning one part of the government is lending money to another. Roughly 80% of the National Debt is held by the public, as of 8/31/25 the National Debt is approximately $37.3 Trillion dollars.
The FOMC consists of the seven members of the Board of Governors in Washington D.C., the president of the Federal Reserve Bank of New York, and four of the remaining Reserve Bank presidents who serve one-year terms on a rotating basis. All Reserve Bank presidents attend and contribute; only some vote at each meeting. Members bring significant experience in economics, finance, banking, and public service along with educational attainment. Biographies of current Governors and Reserve Bank presidents, including education and previous roles, are posted and updated publicly.
Yes, Social Security is not going bankrupt and is expected to be there for you when you retire. The program is primarily funded on an ongoing basis by payroll taxes paid by today’s workers and employers. As long as people are working and contributing, Social Security will continue to have money flowing in to pay benefits.
However, the program does face a long-term funding challenge. According to the Social Security Trustees, if Congress makes no changes to the system, the program’s trust funds will be able to pay 100 percent of promised benefits until the mid-2030s. After that point, adjustments to promised benefits would be required. To ensure full benefits continue, Congress has historically made periodic adjustments to the program and is expected to do so again.
