These Are The States Most And Least Dependent On The Federal Government
Wednesday, Mar 12, 2025 - 05:40 PM
A new study highlights how much states rely on federal aid compared to what they contribute in taxes. The study evaluates three key metrics: return on federal taxes, federal funding as a share of state revenue, and the percentage of federal jobs in each state.
Most dependent states include Alaska, Kentucky, and West Virginia, while New Jersey, California, and Delaware are the least reliant, according to a new WalletHub study.
The report found that Red States (average rank: 21.48) depend more on federal funding than Blue States (32.05). Additionally, states with lower per-capita GDP tend to receive more federal support. Notably, Illinois ranks among the least dependent but has the nation's highest tax rates, while Alaska, the most dependent state, has the lowest taxes.
WalletHub writes that Alaska ranks as the most federally dependent state, with over 50% of its revenue coming from federal funding. The state's harsh weather, large landmass, and small population contribute to its reliance on federal dollars for infrastructure, disaster relief, and resource management.
https://www.zerohedge.com/markets/these-are-states-most-and-least-dependent-federal-government