Which countries are most dependent on federal aid?


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Editor’s note: This story originally appeared on Commodity.com.

For many Americans, the federal government’s legislative packages to stimulate the economy during the COVID-19 pandemic are noteworthy for the direct relief they have provided individual families, such as stimulus checks and expanded unemployment benefits.

But these laws also brought unprecedented levels of federal investment into state and local governments.

A key feature of the $1.9 trillion US bailout, passed in March of this year, was the creation of a $350 billion fund for states, territories, cities, counties and tribal governments across the country to supplement their own revenue.

The package also included a significant amount of funding for areas such as health, education, infrastructure and others that are funded through state and local dollars. The US bailout followed the $2.2 trillion CARES Act as of March 2020 and other pandemic relief packages that provided aid for similar purposes.

The aid to state and local governments in COVID-19 stimulus bills was intended to avoid cuts to public services at a time when many observers feared tax revenues would collapse as a result of the pandemic’s economic fallout.

To determine which states are most dependent on federal aid, researchers at Commodity.com calculated federal funding as a share of total state and local government revenue using the most recent data available from the U.S. Census Bureau’s 2019 Annual Survey of State and Local Government Funding. In the event of a tie, the state with more federal funding per capita (per person) ranked highest.

Here are the countries most dependent on federal aid.

15. Indiana

Carmel, Indiana
Golden Ratio Images / Shutterstock.com

Federal Funding as a Share of Total State Revenue: 25.6%

Per capita Federal Funding: $2,359

Total Federal Funding: $15.931,783000

Total State Revenue: 62345742000 dollars

14. Michigan

Detroit, Michigan
Linda Barton / Shutterstock.com

Federal Funding as a Share of Total State Revenue: 25.6%

Per capita Federal Funding: $2,425

Total Federal Funding: $24,171,800,000

Total State Revenue: $94,423,525,000

13. Tennessee

Chattanooga, Tennessee
Kevin Rock / Shutterstock.com

Federal Funding as a Share of Total State Revenue: 25.7%

Per capita Federal Funding: 1842 USD

Total Federal Funding: 1268,767,000 dollars

Total State Revenue: 49301966000 dollars

12. Vermont

Burlington, Vermont
Erica J. Mitchell / Shutterstock.com

Federal Funding as a Share of Total State Revenue: 27.2%

Per capita Federal Funding: 3,342 USD

Total Federal Funding: $2,083,514,000

Total State Revenue: $7,665,670,000

11. Wyoming

Riverton Wyoming
Michele Facciano / Shutterstock.com

Federal Funding as a Share of Total State Revenue: 27.7%

Per capita Federal Funding: 4,163 dollars

Total Federal Funding: $2,423,952,000

Total State Revenue: 8765832000 dollars

10. Alabama

City scenery from Mobile, Alabama
Photoluminate LLC / Shutterstock.com

Federal Funding as a Share of Total State Revenue: 27.9%

Per capita Federal Funding: $2,489

Total Federal Funding: 1,2251,463,000 dollars

Total State Revenue: 438,60663000 dollars

9. Arizona

Gilbert Arizona
Cavan Photos / Shutterstock.com

Federal Funding as a Share of Total State Revenue: 29.7%

Per capita Federal Funding: $2,365

Total Federal Funding: 17553,381,000 dollars

Total State Revenue: $59.016.577000

8. New Mexico

Santa Fe, New Mexico
Sean Pavone / Shutterstock.com

Federal Funding as a Share of Total State Revenue: 30.2%

Per capita Federal Funding: $3,663 USD

Total Federal Funding: $7,715,923,000

Total State Revenue: $25.517,327,000

7. Arkansas

Little Rock, Arkansas
Joseph Som / Shutterstock.com

Federal Funding as a Share of Total State Revenue: 30.3%

Per capita Federal Funding: $2,694

Total Federal Funding: 8165669000 dollars

Total State Revenue: $26,989,530,000

6. West Virginia

West Virginia
Sean Pavone / Shutterstock.com

Federal Funding as a Share of Total State Revenue: 30.4%

Per capita Federal Funding: $2,966

Total Federal Funding: $5,292,991,000

Total State Revenue: $17,438,498,000

5. Mississippi

Jackson, Mississippi
Sean Pavone / Shutterstock.com

Federal Funding as a Share of Total State Revenue: 31.4%

Per capita Federal Funding: $2,941

Total Federal Funding: $8726251000

Total State Revenue: 27796883000 dollars

4. Kentucky

Louisville, Kentucky
Harold Stiver / Shutterstock.com

Federal Funding as a Share of Total State Revenue: 31.8%

Per capita Federal Funding: $2,854

Total Federal Funding: $12,780,283000

Total State Revenue: 40238628000 dollars

3. Louisiana

Baton Rouge Louisiana
CrackerClips Stock Media / Shutterstock.com

Federal Funding as a Share of Total State Revenue: 32.3%

Per capita Federal Funding: $3,146

Total Federal Funding: $14,616,011.000

Total State Revenue: 45271357000 dollars

2. Alaska

Anchorage, Alaska
Rex Lessman / Shutterstock.com

Federal Funding as a Share of Total State Revenue: 32.7%

Per capita Federal Funding: $5420

Total Federal Funding: $3,963,195,000

Total State Revenue: 12106,780,000 dollars

1. Montana

Montana
Nick Fox / Shutterstock.com

Federal Funding as a Share of Total State Revenue: 34.0%

Per capita Federal Funding: $3,219

Total Federal Funding: $3,477,855,000

Total State Revenue: 10,222,926,000 dollars

methodology

Man, analyzing data on a laptop
fizkes / Shutterstock.com

Data used in this analysis are from the US Census Bureau’s Annual Survey of State and Local Government Finances and from the US Census Bureau’s American Community Survey of One-Year Estimates.

To determine which states are most dependent on federal aid, the researchers calculated federal funding as a share of total state and local public revenue using the latest available data. In the event of a tie, the state with the most federal funding per person ranked highest.

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