Which States Rely the Most on Federal Aid?

"In fiscal year (FY) 2016, roughly 33 percent of all state revenues consisted of federal grants-in-aid."

"States that rely heavily on federal grants-in-aid tend to have sizeable low income populations and relatively lower tax revenues."

"On the other hand, states with relatively lower reliance on federal aid tend to collect more in taxes and have smaller low-income populations, although some exceptions exist."

"Notably, although North Dakota and Alaska impose relatively modest taxes on residents, both are resource-rich states that export much of their tax burdens through severance taxes."

SOURCE: Tax Foundation

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