WASHINGTON (TNND) -- President Donald Trump is advocating for a reduction in the size and scope of the federal government, urging states to become more financially independent. This initiative could significantly impact states that heavily rely on federal funding.
According to the Rockefeller Institute of Government, only 13 states contribute more to the federal government than they receive. The remaining 37 states receive more federal funds than they pay in taxes.
Most of these states were won by Kamala Harris in the last presidential race. Washington, California, Colorado, Minnesota, Illinois, New York, New Hampshire, Massachusetts, and New Jersey are all blue. Nevada, Utah, Wyoming, and Pennsylvania were won by President Trump.
The states receiving the most federal money per capita include New Mexico, Virginia, and Maryland, with New Mexico receiving $14,781, Maryland $12,265, and Virginia $11,577. The Rockefeller Institute of Government's analysis highlights that states with large defense-contracting sectors and military bases receive more federal defense spending. Additionally, federal wages are disproportionately concentrated in states with a large federal employee presence, such as Virginia and Maryland.
Conversely, Massachusetts, New Jersey, and Washington give more money back to the federal government than they receive, with Massachusetts at -$4,846, New Jersey at -$4,344, and Washington at -$3,494.
Federal funding remained the second-largest source of states' revenue in fiscal year 2022, accounting for $1.1 trillion, according to Pew.
The federal government awards hundreds of billions of dollars in grants to help finance a broad range of services, including health care, education, social services, infrastructure, and public safety.