States That Depend Most and Least on Federal Funding

US map with Ben Franklin printed on it.
esfera / Shutterstock.com

When we talk about the federal budgets, we often focus on the big-ticket items like military spending or whether Social Security will last.

It’s easy to forget that federal funds play a big role in state budgets. Indeed, states — and the people who live in them — receive money from the federal government to help balance state government budgets.

WalletHub recently completed a study looking at which states are most and least dependent on federal funds. It weighed three factors, including each state’s:

  • return on taxes paid to the federal government.
  • share of federal jobs.
  • federal funding as a share of state revenue.

The study ranks states for their residents’ dependence on federal funds and the state government’s dependence. You’ll see those ratings reflected in each state’s total dependency score from WalletHub, shown for each state. Lower scores were given to the less-dependent states.

The following states are the ones most and least dependent on federal funds.

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