Public social welfare expenditures, fiscal years 1965-87

The years from 1965 to 1976 were a period of great expansion in social welfare expenditures under public law. The entry of the Federal Government into the fields of health care and education was responsible for much of the growth in the first part of this period; high inflation produced increased spending in the later years. From 1977 to 1987, the rate of growth in social welfare spending slowed considerably. In fact, since 1983 the dominant characteristic of such expenditures has been their stability. Although the amount of money spent was higher in each year, little change occurred in the relative size or the apportionment of the funds. The 1987 expenditures continued this pattern. The total amount spent, $834.4 billion, represented an increase of 6.6 percent over the previous year. This amount equaled 18.8 percent of the gross national product. In constant dollar terms, the increase from 1986 to 1987 was 1.7 percent. The Federal Government provided 60-62 percent of all social welfare funding from 1980 to 1986. In 1987, this share fell slightly--to 59.9 percent. The programs for social insurance, public aid, veterans, and housing were primarily Federally funded, while education was largely a State and local responsibility. Governments at all levels spent 53.4 percent of their funds for social insurance purposes in 1987, slightly more than in 1986. However, the experience at different levels of government varied considerably. Federal spending increased 2 percent as a percent of all Federal expenditures, while State and local spending decreased about 1 percent.