PIA Western Alliance States & Federal Financial Dependence
Published March 18, 2025 at 1:58 PM · News Releases and Bulletins
President Donald Trump and DOGE head, Elon Musk are making huge cuts in federal agency funding and are also laying off thousands of federal employees. At this point no one knows how these funding cuts and layoffs will end up but most believe federal dollars flowing to states will be impacted.
The consumer website, WalletHub did research and looked at states receiving more money from the federal government than others. Company analyst, Chip Lupo said to come to its conclusions, WalletHub looked at all 50 states with three metrics in mind.
They are:
- The return on taxes paid to the federal government
- The number of federal jobs in the state
- Federal funding’s percentage of the state’s revenue
“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,” Lupo said. “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.”
These are the 10 states most dependent on the federal government for funding. Three of them — Alaska, New Mexico and Arizona — are PIA Western Alliance states:
1. Alaska
Total score: 87.04
Resident dependency score: 6
State government dependency score: 2
2. Kentucky
3. West Virginia
4. Mississippi
5. South Carolina
6. New Mexico
Total score: 66.77
Resident dependency score: 1
State government dependency score: 34
7. Lousiana
8. Arizona
Total score: 63.39
Resident dependency score: 21
State government dependency score: 3
9. Indiana
10. Alabama
The other PIA Western Alliance states ranking:
16. Montana
Total score: 54.69
Resident dependency score: 15
State government dependency score: 14
23. Oregon
Total score: 41.10
Resident dependency score: 22
State government dependency score: 30
29. Hawaii
Total score: 38.65
Resident dependency score: 7
State government dependency score: 49
32. Idaho
Total score: 36.31
Resident dependency score: 24
State government dependency score: 35
36. Nevada
Total score: 33.85
Residence dependency score: 35
State government dependency score: 31
44. Washington
Total score: 25.00
Resident dependency score: 43
State government dependency score: 38
49. California
Total score: 16.47
Resident dependency score: 42
State government dependency score: 47
The amount of federal contracts received per $ in federal paid taxes has the PIA Western Alliance state of California as second highest in those contacts just behind Virginia. The lowest amount belongs to Delaware.
The number of grants received per $ of federal taxes paid has California with the most grants California. The lowest number is found in Wyoming.
The amount of other federal assistance received per $ in federal taxes paid again has California ranked at the top with Wyoming as the lowest.
The gross domestic product per capita ranks New York at the top followed by Massachusetts. The PIA Western Alliance states of Washington and California follow in second and third place, and Connecticut wraps up the top-5.
Mississippi has the lowest domestic product per capita.
As for state dependence by party, the Blue State dependence on federal dollars is 21.48 and Red State dependence 32.05.
Source link: WalletHub — https://bit.ly/41AfnnI