...
By Kate Plummer
Senior US News Reporter
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
Alaska, Kentucky and West Virginia are the most federally dependent states while New Jersey, Massachusetts and Delaware are the least.
These are the findings of a new study by personal finance firm WalletHub which analyzed the return on federal taxes paid, the share of federal jobs, and federal funding as a percentage of state revenue in all 50 U.S. states and graded them on a 100-point weighted scale.
Below, a Newsweek map illustrates these findings.
Read More on News
...
Why It Matters
States receive federal aid for various reasons including for public health emergencies and disaster relief. This has an impact on federal budgeting decisions.
The Trump administration has pushed for states to take more responsibility in funding programs and in January 2025 suggested states fund disasters usually funded by the Federal Emergency Management Agency.
What To Know
Alaska was ranked as the most federally dependent state with a total score of 79.91. WalletHub said 45 percent of the state's revenue came from federal funding because of infrastructure and weather issues in the state as well as its vulnerability to disasters. The study said the state also received a lot of funding as 5 percent of the state's workforce is employed by the federal government.
Kentucky came second with a score of 77.35. The study said this state receives high federal funding compared to the taxes that residents pay and that 44 percent of its revenue is from federal funding.
Meanwhile, West Virginia was ranked the third most federally dependent state with a score of 75.24.
On the flip side, the least federally dependent state was New Jersey, with a score of 12.99. Massachusetts was marginally more federally dependent with a score of 13.36 and Delaware received a score of 14.58.
The study also found that Republican states are more federally dependent than Democratic states, on average.
Below, Newsweek has created a map showing the most and least federally dependent states. The higher the score, the more dependent a state is.
What People Are Saying
Chip Lupo, a WalletHub analyst said in a release: "Regardless of whether the distribution of federal funds is fair or not, living in one of the most federally dependent states can be beneficial for residents. For every dollar residents of the top states pay in taxes, they get several dollars back in federal funding, which often leads to higher-quality infrastructure, education, public health and more."
What Happens Next
State and federal budgetary decisions will likely change these rankings in the months and years to come.
View 0 Comments
Submit Correction
View Editorial & AI Guidelines