Which States Use the Most Federal Aid? 

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Which states use the most federal aid?

The federal government grants billions of dollars to state and local governments. These grants comprise a sizable portion of these smaller governments’ budgets. The federal government provided almost $1.3 trillion in grants to state and local governments in 2021, an increase of over $400 billion since 2019.

  • California received the most from the federal government, $162.9 billion, followed by New York ($110.2 billion), Texas ($105.8 billion), Florida ($58.8 billion), and Pennsylvania ($57.1 billion).

Map of federal funding per capita by state
  • Alaska received the most per person, about $8,628, which was 26.5% more than the second-highest state, Rhode Island (receiving $6,821 per person). Florida received the least per person, about $2,693.

  • Proportionally, however, Montana relied on federal funding the most, with 31.8% of the state’s budget coming from federal funds. New Mexico followed (30.7%), then Kentucky (30.1%), Louisiana (29.8%), and Alaska (29.0%).

  • Vermont received over $4.9 billion in federal grants in 2020 and 2021. But federal grants comprised 12.8% of its total budget in 2021, the smallest percentage of any state.

  • Federal funding to state and local governments fell by 23.2% between 2021 and 2023 but was higher than pre-pandemic levels.

Learn more about where your state falls with these maps and charts.

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David Keech
Author: David Keech

David Keech is a retired teacher and works as a sportswriter, sports official and as an educational consultant. He has reported on amateur sports since 2011, known as 'KeechDaVoice.' David can be reached at [email protected]