Where The Money Goes Federal procurement totaled nearly $340 billion in fiscal 2004, according to the Census Bureau. The figure includes spending by the Postal Service, but does not include classified procurements, spending by Congress or federal courts or contracts awarded outside the United States. The Census report said total federal spending reached $2.2 trillion, a 5% increase over the year before, with nearly half the money going to Social Security, Medicare and Medicaid. Top Ten States in Federal Procurement California $40.25 billion Virginia $35.33 Texas $26.97 Maryland $20.80 District of Columbia $13.35 Florida $11.45 Arizona $ 9.80 Connecticut $ 9.51 Pennsylvania $ 9.31 Massachusetts $ 9.13