Federal revenue refers to the money that the U.S. government collects to fund its operations and services. This revenue primarily comes from various sources, including individual income taxes, corporate taxes, and payroll taxes. These funds are essential for supporting public services such as education, healthcare, and infrastructure. The amount of federal revenue can fluctuate based on economic conditions and changes in tax laws. When the economy is strong, more people are employed, leading to higher income tax collections. Conversely, during economic downturns, federal revenue may decrease as businesses and individuals earn less.