Four out of every 10 dollars the federal government spends go to the elderly or disabled. This spending is largely because the: government spends much on Medicaid, income support, and pensions for all seniors and people with disabilities. government provides income support, food, housing, and utilities to all seniors and people with disabilities. government provides a basic income and health care to almost all Americans over the age of 65. elderly and people with disabilities rely on unemployment insurance, food stamps, or government-provided health care