You work. You get paid. Washington takes its cut. But have you ever stopped to ask one simple question: Where does the money actually go?
Forget trillion-dollar numbers for a minute. Most Americans can’t comprehend the difference between $1 trillion and $7 trillion anyway. Let’s shrink Washington down to something we all understand: a $100 bill.
In fiscal year 2025, the federal government spent roughly $7 trillion. Social Security alone consumed about $1.6 trillion. Major federal health programs, including Medicare and Medicaid, were another enormous piece. Defense approached $900 billion.
WASHINGTON IS DRIVING AMERICA TOWARD A DEBT CRISIS WE CAN’T IGNORE ANY LONGER
And then there’s the number that should make every taxpayer spit out their morning coffee: interest.
The federal government spent about $970 billion just on net interest on the national debt. Not roads. Not teachers. Not soldiers. Not Social Security checks.
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Interest.
That means roughly $14 out of every $100 Washington spent went toward interest on money we’ve already borrowed.
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Think about your own household budget. Imagine earning $100 and immediately throwing $14 in the fireplace because of credit-card balances you accumulated years ago.
You’d probably say you have a spending problem. Washington calls it a budget.
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So where did the rest go?
Roughly speaking, out of every $100 the federal government spent in 2025, about $23 went to Social Security, approximately $26 went toward major health programs, around $13 went toward national defense, and about $14 serviced the interest on our debt. The remaining dollars funded everything from veterans’ benefits and income-security programs to transportation, education, federal agencies and thousands of other government programs.
You can argue all day about which of those programs are worthwhile. But here’s the part Washington doesn’t put on your receipt.
We didn’t have the $100.
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Federal revenues were only about $5.2 trillion while spending approached $7 trillion. The result was another roughly $1.8 trillion deficit in fiscal 2025. In other words, for every $100 Washington spent, it collected only about $74 and borrowed roughly $26 to make up the difference.
Try that financial plan at your house. Earn $74. Spend $100. Put the other $26 on the credit card. Then do it again next yea