According to the US Department of Justice
Local governments spend more on criminal justice than state governments or the federal government.
Local spending represented just over half (51%) of total government expenditures on criminal justice. State spending accounted for a third (33%) and federal spending represented a sixth (16%) of criminal justice expenditures.
After adjusting for inflation, federal expenditures increased 71%, state expenditures increased 62%, and local expenditures increased 39% between 1990 and 2000.
From 2001 to 2007, state spending on criminal justice declined slightly, while federal spending increased 19% and local spending increased 7%.
Adjusting for inflation
Government expenditures for fiscal years preceding 2007 were inflation-adjusted using Gross Domestic Product deflators prepared by the Bureau of Economic Analyses. Chain-type price indices as appropriate for state and local government spending and nondefense federal spending were applied to expenditures reported in years prior to 2007 to produce inflation-adjusted expenditures in 2007 constant dollars.