<P> During FY2016 , the federal government spent $3.85 trillion on a budget or cash basis , up $164 billion or 4 % vs. FY2015 spending of $3.69 trillion . Major categories of FY 2016 spending included : Healthcare such as Medicare and Medicaid ( $1,060 B or 28 % of spending ) , Social Security ( $910 B or 24 % ) , non-defense discretionary spending used to run federal Departments and Agencies ( $600 B or 16 % ) , Defense Department ( $585 B or 15 % ) , and interest ( $240 B or 6 % ) . </P>
what does the us government spend the most money on
Healthcare such as Medicare and Medicaid