State & Local Government Spending
Revenue, expenditures, tax composition, and pension fund health for U.S. state and local governments. All quarterly figures are seasonally adjusted annual rates (SAAR).
About this data
State and local government finance sits downstream of federal fiscal policy in ways the aggregate debt numbers alone don't capture. Roughly a quarter of state and local revenue flows from federal grants, and that share rises sharply during recessions as stabilization transfers expand. The series here draw from FRED and the Census Bureau's Annual Survey of State and Local Government Finances, covering sub-federal revenue, expenditure, and outstanding debt at quarterly cadence. Every dollar of federal deficit spending includes a pass-through component that eventually surfaces on city, county, and state balance sheets.
Receipts vs Expenditures
Quarterly, SAAR, Billions USD
- Receipts
- Expenditures
Revenue Composition
Tax vs non-tax receipts, SAAR
- Tax Revenue
- Non-Tax Revenue
Consumption & Gross Investment
State/local spending on goods, services, and capital
Pension Fund Health
Assets vs liabilities — unfunded gap shaded
- Funded Assets
- Total Liabilities
- Funded Ratio %
Quarterly Data
| Quarter | Receipts | Expenditures | Balance |
|---|---|---|---|
| Q4 2025 | $4.02T | $4.24T | -$215B |
| Q3 2025 | $3.97T | $4.21T | -$242B |
| Q2 2025 | $3.92T | $4.11T | -$189B |
| Q1 2025 | $3.87T | $4.06T | -$185B |
| Q4 2024 | $3.86T | $4.03T | -$167B |
| Q3 2024 | $3.82T | $4.00T | -$180B |
| Q2 2024 | $3.74T | $3.95T | -$208B |
| Q1 2024 | $3.74T | $3.90T | -$159B |
| Q4 2023 | $3.67T | $3.81T | -$137B |
| Q3 2023 | $3.60T | $3.79T | -$186B |
| Q2 2023 | $3.65T | $3.77T | -$116B |
| Q1 2023 | $3.66T | $3.73T | -$70B |
| Q4 2022 | $3.68T | $3.71T | -$28B |
| Q3 2022 | $3.66T | $3.62T | $44B |
| Q2 2022 | $3.76T | $3.58T | $173B |
| Q1 2022 | $3.66T | $3.47T | $185B |
| Q4 2021 | $3.54T | $3.40T | $143B |
| Q3 2021 | $3.57T | $3.39T | $183B |
| Q2 2021 | $4.09T | $3.33T | $759B |
| Q1 2021 | $3.11T | $3.24T | -$139B |
Frequently asked questions
How much do US state and local governments spend?
State and local governments together spend roughly $3.5 trillion per year — about 60% of what the federal government spends. The majority goes to education (K-12 and public colleges), Medicaid administration, transportation, public safety, and public-sector employment.
What is the largest source of state and local revenue?
Taxes provide about half of state and local revenue — a mix of sales, income, and property taxes. Federal grants (primarily for Medicaid and education) provide another roughly 25%. Charges for services (tuition, utilities, hospitals) and miscellaneous fees round out the rest.
How healthy are US public pension funds?
State and local public pensions are collectively underfunded by roughly $1.5 trillion, depending on discount-rate assumptions. Funded ratios vary widely by state — some systems are above 90% funded, others below 50%. Rising interest rates have improved actuarial positions since 2022 but the long-run structural gap remains.