Federal Aid By State 2020

Federal aid is allocated to states for a variety of purposes. After the federal government generates revenue from taxes, it is redistributed to the states based on need. Not all states benefit equally from this redistribution.

Federal aid is distributed to states for transportation, public education, Medicaid, community development, and other programs vital to residents.

States that receive more federal aid tend to have poorer populations, lower tax revenues and have more assistance programs such as Medicaid. States with higher income residents tend to receive less federal aid.

Federal aid can be allocated in the form of competitive grants, which are likely to fluctuate from year to year. Federal aid is also awarded from formula grants that incorporate population and poverty statistics.

California receives the highest total amount of federal funding at $43.61 billion. California, however, only receives net federal funding of $12 per resident.

The ten states with the highest total federal funding are:

  1. California ($43.61 billion)
  2. Texas ($26.90 billion)
  3. Florida ($23.77 billion)
  4. New York ($22.06 billion)
  5. Virginia ($17.68 billion)
  6. Pennsylvania ($15.58 billion)
  7. Illinois ($13.18 billion)
  8. Ohio ($12.57 billion)
  9. North Carolina ($11.31 billion)
  10. Michigan ($10.84 billion)

Net federal funding per resident is the amount that a state received per capita from the government minus the amount that residents and organizations paid the government per capita.

Virginia has the highest net federal funding per resident at $10,301 per resident. Unlike the previously mentioned trend, Virginia receives disproportionately high federal aid despite being one of the wealthier states in the US. This is could be attributed to their large defense contracting sectors.

The ten states with the highest net federal funding per resident are:

  1. Virginia ($10,301)
  2. Kentucky ($9,145)
  3. New Mexico ($8,692)
  4. West Virginia ($7,283)
  5. Alaska ($7,048)
  6. Mississippi ($6,880)
  7. Alabama ($6,694)
  8. Maryland ($6,035)
  9. Maine ($5,572)
  10. Hawaii ($5,270)

On the opposite end, there are some states that have negative net federal funding. These states have paid to the federal government in taxes more than they receive back in aid. New Jersey has the largest negative net federal funding of -$2,368 per resident, closely followed by Massachusetts with -$2,343 per resident.

The ten states with the lowest net federal funding per resident are:

  1. New Jersey (-$2,368)
  2. Massachusetts (-$2,343)
  3. New York (-$1,792)
  4. North Dakota (-$720)
  5. Illinois (-$364)
  6. New Hampshire (-$234)
  7. Washington (-$184)
  8. Nebraska (-$164)
  9. Colorado (-$95)
  10. California ($12)
State Federal Funding Per Resident Total Federal Funding Benefits Recipients Median Household Income 2020 Pop.
New Jersey-$2,368$97.70 Bn8.90%$80,0888,936,574
Massachusetts-$2,343$78.70 Bn11.70%$77,3856,976,597
New York-$1,792$220.60 Bn14.80%$64,89419,440,469
North Dakota-$720$7.90 Bn6.30%$61,843761,723
Illinois-$364$131.80 Bn12.90%$62,99212,659,682
New Hampshire-$234$15.00 Bn7.00%$73,3811,371,246
Washington-$184$80.50 Bn12.30%$70,9797,797,095
Nebraska-$164$17.70 Bn8.30%$59,9701,952,570
Colorado-$95$57.50 Bn7.60%$69,1175,845,526
California$12$436.10 Bn8.90%$71,80539,937,489
Utah$296$23.90 Bn6.80%$68,3583,282,115
Texas$304$269.00 Bn12.00%$59,20629,472,295
Wisconsin$536$55.40 Bn10.60%$59,3055,851,754
Wyoming$670$7.10 Bn6.30%$60,434567,025
Minnesota$959$64.40 Bn7.80%$68,3885,700,671
Iowa$1,105$29.90 Bn9.60%$58,5703,179,849
Nevada$1,140$28.70 Bn12.20%$58,0033,139,658
South Dakota$1,409$9.30 Bn8.90%$56,521903,027
Kansas$1,983$31.30 Bn7.70%$56,4222,910,357
Florida$2,187$237.70 Bn13.60%$52,59421,992,985
Rhode Island$2,228$12.60 Bn15.40%$63,8701,056,161
Georgia$2,253$104.50 Bn12.60%$56,18310,736,059
Pennsylvania$2,299$155.80 Bn12.90%$59,19512,820,878
Indiana$2,359$67.80 Bn9.30%$54,1816,745,354
Michigan$2,474$108.40 Bn13.10%$54,90910,045,029
Oregon$2,477$45.70 Bn15.40%$60,2124,301,089
Ohio$2,750$125.70 Bn13.20%$54,02111,747,694
Delaware$2,892$11.50 Bn10.40%$62,852982,895
North Carolina$3,358$113.10 Bn12.30%$52,75210,611,862
Idaho$3,428$17.50 Bn9.70%$52,2251,826,156
Tennessee$3,591$76.30 Bn13.50%$51,3406,897,576
Vermont$3,741$8.00 Bn11.50%$57,513628,061
Louisiana$3,785$52.00 Bn16.40%$46,1454,645,184
Montana$3,808$12.20 Bn9.40%$53,3861,086,759
Missouri$3,949$72.30 Bn11.00%$53,5786,169,270
Oklahoma$3,986$45.10 Bn13.20%$50,0513,954,821
Arizona$4,430$82.80 Bn10.80%$56,5817,378,494
South Carolina$5,008$59.70 Bn12.30%$50,5705,210,095
Arkansas$5,080$35.10 Bn11.80%$45,8693,038,999
Hawaii$5,270$19.90 Bn10.70%$77,7651,412,687
Maine$5,572$17.40 Bn12.80%$56,2771,345,790
Maryland$6,035$105.10 Bn10.30%$80,7766,083,116
Alabama$6,694$65.80 Bn14.00%$48,1234,908,621
Mississippi$6,880$37.80 Bn15.30%$43,5292,989,260
Alaska$7,048$13.00 Bn10.80%$73,181734,002
West Virginia$7,283$24.60 Bn16.80%$43,4691,778,070
New Mexico$8,692$31.70 Bn17.40%$46,7442,096,640
Kentucky$9,145$70.80 Bn14.10%$48,3754,499,692
Virginia$10,301$176.80 Bn8.10%$71,5358,626,207