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US Census Bureau News Release
Patricia Buscher                                              CB02-54                            
Public Information Office                                       
(301) 457-3030/457-3670 (fax)                                                 
(301) 457-1037 (TDD)                                   
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        Federal Domestic Spending Up 9 Percent in 2001, 
                     Census Bureau Reports
 The federal government provided $1.8 trillion to the 50 states in 2001,
according to two reports released today by the Commerce Department's
Census Bureau. This spending, representing a 9 percent increase over
2000, comprised domestic benefits, subsidies, grants, goods and services,
and salaries and wages.

 California benefitted more than any state, receiving $189 billion;
followed by New York at $116 billion; Texas, $113 billion; Florida, 
$100 billion; and Pennsylvania, $79 billion.  Combined, these five states
received 34 percent of all federal expenditures. The five accounted for 
36 percent of the U.S. population according to Census 2000.

 Altogether, Social Security, Medicare and Medicaid accounted for 
$854 billion, or 48 percent of the U.S. government's domestic spending in 

 "The largest increases in fiscal year 2001 federal spending were in the
categories of other direct payments, procurement awards and grants," said
Gerard Keffer, chief of the Census Bureau's federal programs branch.

 Other direct payments included Medicare at $237 billion, up 10.0 percent,
and housing assistance, excess earned income tax credits, unemployment
compensation and food stamps.  These payments totaled $405 billion, an
11.1 percent increase.

 Federal procurement awards in 2001 were $246 billion, a 10.3 percent
increase over 2000, with Department of Defense contracts totaling 
$149 billion, or 61 percent of all such awards.

 Grant awards climbed to $339 billion, a nearly 10 percent increase over
2000, with Medicaid accounting for $134 billion, up 10.5 percent.

 Direct payments to individuals for retirement and disability reached 
$600 billion in 2001, up 8.0 percent over 2000, with Social Security alone
totaling $483 billion, an 8.8 percent increase.

 Federal government salaries and wages were $188 billion, up 1.9 percent,
with the Department of Defense (37 percent) and Postal Service (27 percent) 
making up nearly two-thirds of the total.

 At the county or county-equivalent level, New York City, N.Y. 
($48.98 billion), led the list of recipients, followed by Los Angeles 
County, Calif. ($48.96 billion); Cook County, Ill.  ($27.88 billion); San 
Diego County, Calif. ($19.83 billion); and Harris County, Texas 
($15.62 billion).

 Among states, per capita federal spending was highest in Alaska
($10,214), followed by Virginia ($10,067), North Dakota ($9,262), New
Mexico ($9,118) and Maryland ($9,094). The remainder of the top 10, in
order, were: Hawaii ($8,025), South Dakota ($7,693), Montana ($7,335),
Wyoming ($7,257) and Alabama ($7,128). Factors affecting the amount of per
capita spending include state populations, the number of federally funded
programs in a state and the number of federal employees residing in a
 Population figures used to calculate per capita amounts for the states,
counties and county-equivalent areas represent resident population as of
April 1, 2000.

DOD Spending

 The Department of Defense spent a total of $255 billion, up 7.2 percent 
over 2000. This amount included procurement contracts, payroll, military 
pensions and grants.

 The top five states in Defense Department spending in 2001 were
California ($31.3 billion), Virginia ($30.0 billion), Texas ($18.1 billion), 
Florida ($13.7 billion) and Georgia ($11.0 billion). The top five 
counties or county-equivalent areas that received federal defense
funds were Los Angeles County, Calif. ($8.3 billion); San Diego County,
Calif. ($7.7 billion); Newport News City, Va. ($6.4 billion); Fairfax
County, Va. ($5.6 billion); and Cobb County, Ga. ($4.9 billion).

 In addition to providing an overall picture of domestic spending by the
federal government as a whole, the reports provide breakouts of spending
by federal agencies.

 The Census Bureau report, Consolidated Federal Funds Report for Fiscal 
Year 2001 (State and County Areas), covers most domestic spending by the 
federal government. The largest item not covered was interest on the 
federal debt.

 The report is the only consolidated source of state and local data on the
majority of direct federal expenditures, as well as on federal loan and
insurance programs. A companion report, Federal Aid to States for Fiscal 
Year 2001 [PDF], contains federal agency and program-level data on grants 
to state and local governments.

 The data in these reports are not subject to sampling variability. The
data are subject to nonsampling errors, which include errors of response
and processing.
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Source: U.S. Census Bureau | Public Information Office |  Last Revised: August 09, 2007