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Social Security is the largest single program in the federal budget and makes up approximately one quarter of total federal spending.
The United States spent $725 billion on national defense during fiscal year (FY) 2020 according to the Office of Management and Budget, which amounts to 11 percent of federal spending.
Medicaid’s role in state budgets is unique, since the program acts as both an expenditure and the largest source of federal support in state budgets.
This budget explainer describes what Medicaid is, how it is financed, and who benefits from it.
Policymakers should work together to stabilize and strengthen this important program for generations to come.
The Trustees urge lawmakers to enact legislation soon to put Medicare on a sustainable path.