NEW YORK (CNNMoney.com) - The federal government is likely to spend $835 billion this year fighting the crises in the financial system and the economy, according to a new report by the Congressional Budget Office.
That spending represents about 6% of the nation's gross domestic product.
Of that amount, $340 billion is going toward the Troubled Asset Relief Program, which is being used primarily to bail out banks, insurers and the auto industry. Another $290 billion in 2009 outlays is being used to prop up mortgage giants Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500).
In addition, $187 billion is being used for economic stimulus and relief efforts such as extended unemployment insurance.
As expensive as that seems, the CBO notes that "the current recession has little effect on long-term projections of non-interest spending and revenues."