The share of state revenue from federal sources varies widely among states.
The share of state revenue from federal sources varies widely among states. The recent report from The Pew Charitable Trusts Pandemic Aid Lifts Federal Share of State Budgets to New Highs provides data from 2000 through 2021. Of this data, Pew said:
The share of states’ total revenue that comes from federal funds climbed to a record high nationally and in most states in fiscal year 2021, the first full budget year bolstered by temporary COVID-19 pandemic aid from the federal government. The federal share of state budgets grew at a slower rate than in the prior year, however, because of a simultaneous spike in tax revenue. Despite mounting fiscal and economic uncertainties, the portion of revenue from federal funds is expected to remain elevated through at least fiscal 2024—the last year in which states can allocate pandemic aid.
In fiscal 2021, 36.7% of states’ revenue came from federal dollars, up from 35.9% the previous year. The share grew in 31 states compared with fiscal 2020 and in 49 states versus fiscal 2019, just before the pandemic. California is the only state that had a lower federal share of state revenue in fiscal 2021 than before the pandemic.
Following are two charts I prepared from this data. Click for larger versions.
