Federal spending refers to the money that the U.S. government allocates for various programs and services. This spending covers a wide range of areas, including defense, education, healthcare, and infrastructure. It is funded primarily through tax revenues and borrowing. The federal budget is created annually and outlines how much money will be spent in each category. Mandatory spending, such as Social Security and Medicare, is required by law, while discretionary spending can be adjusted each year. Overall, federal spending plays a crucial role in shaping the economy and providing essential services to citizens.