In the current fiscal year, the federal government will spend about $1 trillion on health care. More than half of that will be through Medicare, a little more than a quarter on Medicaid and the Children's Health Insurance Program (CHIP), and the remaining fifth on veterans’ health care, the military health system, health research, and other programs. Those outlays represent nearly 7 percent of gross domestic product (GDP). In addition, federal revenue is held down by the rapid growth of private health spending.
June 2011
Until recently the obligations of Fannie Mae and Freddie Mac—two federally chartered institutions (called government-sponsored enterprises, or GSEs) that provide credit guarantees for almost half of the outstanding mortgages in the United States—had no official backing from the federal government, nor were any costs associated with them reflected in the federal budget. However, starting in 2007, their losses mounted sharply as housing prices dropped and foreclosure rates climbed.
Every year, the Congress is asked to approve the procurement of one years worth of expensive items such as ships and aircraft. Yet those decisions have long-term implications. Well-constructed 30-year acquisition plans for major weapon systems can provide information about those implications. This morning CBO senior analyst Eric Labs testified before the U.S. House Armed Services Committees Subcommittee on Oversight and Investigation to discuss the value of the Department of Defenses (DoDs) annual 30-year shipbuilding and aviation plans.