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States Most Dependent on the Federal Government

Key Findings

Key Findings
  • Red States Rule: Mostly Republican-voting states snag the top spots in federal dependency. Eight out of the top 10 states relying on Uncle Sam lean red. New Mexico stands out, being the lone blue state in the top 10. Maine adds some political diversity, swinging between both parties in recent elections.
  • Cash Flow: On average, federal funding accounts for about 39% of state revenues, but this varies widely. Wyoming leads the pack with 56.43%, while Hawaii brings up the rear with 27.13%.
  • Connecticut’s Independence: The Nutmeg State shines as the least reliant on federal funds, with less than 32% of its revenue coming from the feds. It also boasts one of the lowest percentages of federal employees and a small ratio of federal funding to income taxes paid.
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25. Virginia

25. Virginia
  • Federal Share of State Revenue: 29.28%
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 342K vs. 15.7K vs. 1.7 million
  • State EITC as % of Federal EITC: 15%

Kicking off our list, Virginia lands at 25th place as one of the most dependent states on federal support. While its federal revenue share and funding-to-taxes ratio aren't the highest, its reliance shines through its high percentage of federal employees, notably around Langley and D.C. It tops the charts for federal contract receipts.

W. Scott Breckinridge Smith, CC BY-SA 3.0 via Wikimedia Commons

24. South Carolina

24. South Carolina
  • Federal Share of State Revenue: 38.61%
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 301K vs. 7.3K vs. 1.4 million
  • State EITC as % of Federal EITC: 125%

South Carolina stands out as the 22nd-ranked state (tied with two others) reliant on federal support, with 38.61% of its state revenue coming from federal sources. Impressively, they receive $0.85 back in funding for every dollar in taxes, showcasing a moderate federal contribution. With 2.38% of its population employed by the federal government, around 119,000 people work for the government, a notable figure for a state of approximately 5 million residents.

23. Ohio

23. Ohio
  • Federal Share of State Revenue: 39.72%
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 698K vs. 48K vs. 3.3 million
  • State EITC as % of Federal EITC: 30%

Ohio, the 22nd-ranked state most dependent on federal aid, shares its spot with South Carolina and Hawaii. While its federal share of state revenue is similar to South Carolina's, at 39.72%, Ohio edges ahead with a slightly higher ratio of federal funding to income taxes paid, standing at 0.88. Interestingly, Ohio's lower percentage of federal workers, just 1.80%, also plays a role in its ranking tie.

JBTHEMILKER, CC BY-SA 4.0 via Wikimedia Commons

22. Hawaii

22. Hawaii
  • Federal Share of State Revenue: 27.13%
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 82K vs. 6.6K vs. 425K
  • State EITC as % of Federal EITC: 20%

Hawaii might be famous for its stunning beaches and aloha spirit, but did you know it's also tied for 22nd place in federal dependence? Despite its tropical allure, the state relies moderately on federal support, with a 27.13% share of state revenue. Interestingly, it boasts a high percentage of federal workers.

Larry D. Moore, CC BY-SA 4.0 via Wikimedia Commons

21. Missouri

21. Missouri
  • Federal Share of State Revenue: 45.47%
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 331K vs. 6.8K vs. 1.09 million
  • State EITC as % of Federal EITC: 10%

Missouri might be known as the "Show Me" state, but when it comes to federal dependency, it's showing us something interesting. Ranking 20th among states reliant on federal support, Missouri's federal share of state revenue is surprisingly high at 45.47%. While its funding-to-taxes ratio matches South Carolina, its federal workforce percentage trails slightly.

Bev Sykes from Davis, CA, USA, CC BY 2.0 via Wikimedia Commons

20. Arkansas

20. Arkansas
  • Federal Share of State Revenue: 39.68%
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 161K vs. 1.7K vs. 976K
  • State EITC as % of Federal EITC: N/A

Arkansas and Missouri share the 20th spot for federal dependency. While Arkansas doesn't match Missouri's federal share, it boasts the highest ratio of federal funding to income taxes, at $3.39 per dollar paid! It has only 1.97% federal workers, and it ranks low in GDP at 48th. Arkansas punches above its weight in federal support.

Paul Sableman (Flickr user: pasa47), CC BY 2.0 via Wikimedia Commons

19. Oklahoma

19. Oklahoma
  • Federal Share of State Revenue: 37.24% 
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 260K vs. 5K vs. 939K
  • State EITC as % of Federal EITC: 5%

In the grand scheme of states leaning on Uncle Sam, Oklahoma ranks 19th, not as dependent as some but not entirely self-sufficient either. While its federal revenue share is 37.24%, lower than many, its ratio of federal funding to income taxes paid sits at 1.05, meaning it gets a bit more back than it puts in. Plus, with 4.20% of federal workers calling it home, Oklahoma has a moderate federal presence.

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18. Tennessee

18. Tennessee
  • Federal Share of State Revenue: 40.28%
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 463K vs. 14.3K vs. 1.7 million
  • State EITC as % of Federal EITC: N/A

Tennessee, ranked 18th in federal dependency, stands out with a 40.28% federal share of state revenue, edging past Oklahoma. Though its 0.69 ratio of federal funding to income taxes paid hints at underutilization, with only 2.32% federal workers, less than Oklahoma, other factors contribute to its dependency status.

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17. Maryland

17. Maryland
  • Federal Share of State Revenue: 33.88%
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 341K vs. 22K vs. 1.47K
  • State EITC as % of Federal EITC: 28%

Maryland, despite being the 17th most dependent state on federal aid, boasts a unique relationship with Uncle Sam. While federal funding comprises 33.88% of its revenue, it only receives 51 cents for every dollar paid in taxes. However, Maryland shines in federal employment, with 10.12% of its workers in government jobs, perhaps due to its D.C. adjacency. Moreover, ranking 4th in federal contracts received, it's a hub for government business.

16. Kentucky

16. Kentucky
  • Federal Share of State Revenue: 44.55
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 279K vs. 13K vs. 1.5 million
  • State EITC as % of Federal EITC: N/A

Kentucky ranks 16th in federal dependency, with about 44.55% of its revenue sourced from government aid. Residents enjoy a sweet deal, receiving $3.45 in federal funding for every $1 in taxes paid. While not bursting with federal jobs like some states, around 1.8% of Kentuckians work for the government, placing it mid-table nationally.

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15. South Dakota

15. South Dakota
  • Federal Share of State Revenue: 50.93%
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 40K vs. 2.6K vs. 124K
  • State EITC as % of Federal EITC: N/A

In South Dakota, the federal government plays a significant role in keeping the state's wheels turning. Over half of the state's revenue comes from federal aid, with a dollar paid in taxes resulting in just over a dollar back in federal funding. With about 3.14% of workers employed by the federal government, it's clear Uncle Sam is a big employer here. Interestingly, South Dakota ranks second-lowest for the amount of grants received.

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14. Vermont

14. Vermont
  • Federal Share of State Revenue: 43.55%
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 41K vs. 1.7K vs. 194K
  • State EITC as % of Federal EITC: 38%

Vermont may be known for its picturesque landscapes and maple syrup, but it's also among the top states relying on federal support. With over 43% of its state revenue coming from the federal government, it's heavily dependent. Despite this, it fares better than some, with a ratio of federal funding to income taxes paid sitting at 1.53, though it's second-lowest in federal contracts received.

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13. Arizona

13. Arizona
  • Federal Share of State Revenue: 47.44
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 377K vs. 7K vs. 2.2 million
  • State EITC as % of Federal EITC: N/A

Arizona, ranked 13th in federal dependency, sits between Rhode Island and Vermont in reliance on federal aid. With 47.44% of state revenue sourced federally, it's evident that Arizona leans heavily on Washington's support. Despite a ratio of 0.88 for federal funding to taxes paid, Arizonans contribute more than they receive, while 2.54% of the workforce is federally employed.

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12. Rhode Island

12. Rhode Island
  • Federal Share of State Revenue: 43.72 
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 92K vs. 2.3K vs. 286K
  • State EITC as % of Federal EITC: 15%

Rhode Island, landing at 12th place among states dependent on federal aid, doesn't rely as heavily as some might think. With a federal share of state revenue just above Vermont's and a slightly higher percentage of federal employees, it's holding its own. Its ratio of federal funding to income taxes paid is around 50% less federal support compared to taxes paid.

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11. Delaware

11. Delaware
  • Federal Share of State Revenue: 38.79%
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 67K vs. 2.7K vs. 259K
  • State EITC as % of Federal EITC: 4.5%

Delaware may be small, but it packs a punch when it comes to federal dependency. Ranking 11th, its ratio of federal funding to income taxes paid surpasses Rhode Island's. With about 38.79% of revenue from federal aid, it's fairly average. Despite its 1.20 ratio, it boasts a 2.42% federal employment rate. Surprisingly, it ranks lowest in federal contracts received.

formulanone from Huntsville, United States, CC BY-SA 2.0 via Wikimedia Commons

10. Montana

10. Montana
  • Federal Share of State Revenue: 46.58%
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 55K vs. 2.2K vs. 281K
  • State EITC as % of Federal EITC: 3%

Montana boasts the eighth-highest percentage of workers employed by the federal government, at 3.54%. The state also receives substantial intergovernmental aid, with a 46.58% federal share of state revenue. Moreover, Montana receives more federal funding than the amount it pays in taxes, with a $1.04 ratio similar to South Dakota's. Interestingly, it ranks 5th among the states with the lowest amount of federal contracts received.

R. Sieben, CC BY 3.0 via Wikimedia Commons

9. Wyoming

9. Wyoming
  • Federal Share of State Revenue: 56.43%
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 13K vs. 478 vs. 74K
  • State EITC as % of Federal EITC: N/A

Wyoming, landing at the ninth spot, stands out with the highest federal revenue share among all states, at a whopping 56.43%. Despite its low population, it receives $1.36 for every tax dollar paid, showcasing a significant reliance on federal aid. Moreover, it boasts a notable 3.37% of federal employees, yet surprisingly ranks lowest in both federal contracts and grants received.

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8. Maine

8. Maine
  • Federal Share of State Revenue: 43.7%
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 85K vs. 3.3K vs. 354K
  • State EITC as % of Federal EITC: 25% (without dependent children), 12% (all other eligible filers)

Maine, being the 8th-ranked state most reliant on federal funding, sees 43.7% of its revenue coming from Uncle Sam. What's interesting is its low federal employment rate, at 2.31%, but those lucky enough to work for the feds are making bank, earning 1.74 times more than private sector folks.

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7. Louisiana

7. Louisiana
  • Federal Share of State Revenue: 52.27%
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 401K vs. 3.4K vs. 1.91 million
  • State EITC as % of Federal EITC: 5%

Tying with Maine for seventh place on the list of most dependent states is Louisiana. Louisiana’s federal share of revenue is a whopping 52.27%. And while the percentage of federal workers is only 2.13%, the federal funding-to-income tax ratio is 1.60, making it one of the highest on this list. 

David Brossard, CC BY-SA 2.0 via Wikimedia Commons

6. Idaho

6. Idaho
  • Federal Share of State Revenue: 41.08%
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 69K vs. 1.7K vs. 423K
  • State EITC as % of Federal EITC: N/A

In Idaho, federal employees are cashing in more than their private sector counterparts, with an impressive 1.89 times higher earnings. It's one of the nation's widest gaps, ranking sixth. Moreover, Idaho boasts a hefty 2.75% of its workforce in federal employment, and federal funding contributes significantly, making up 41.08% of the state's revenue.

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5. Alaska

5. Alaska
  • Federal Share of State Revenue: 50.83%
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 39K vs. 1.8K vs. 240K
  • State EITC as % of Federal EITC: N/A

Alaska, the 5th-ranked state most dependent on the federal government, receives 50.83% of its revenue from Uncle Sam. The state's vast size, harsh weather, and sparse population make infrastructure upkeep a daunting task. Its abundance of natural resources, coupled with its susceptibility to disasters and strategic significance, draw significant federal support. With nearly 5% of its workforce in federal jobs, Alaska surpasses the national average. Moreover, Alaskans receive $1.62 for every dollar paid in taxes to the federal coffers, a rate higher than most states.

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4. Alabama

4. Alabama
  • Federal Share of State Revenue: 41.20%
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 354K vs. 6.3K vs. 1.23 million
  • State EITC as % of Federal EITC: N/A

Alabama holds the 4th spot among states reliant on federal support. It boasts the 10th highest federal employment rate at 3.33%, with workers earning nearly double those in private sectors. Taxpayers receive $1.25 for every dollar paid, highlighting their dependence on federal funding. GDP ranks low as well, sitting at 47th among the states.

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3. Mississippi

3. Mississippi
  • Federal Share of State Revenue: 47.31%
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 230K vs. 1.7K vs. 786K
  • State EITC as % of Federal EITC: N/A

Mississippi may rank low in GDP, sitting at 50th place, but it's high in federal dependency. A whopping 47.31% of its revenue comes from federal funding, placing it seventh among all states. With 3.23% of its workforce employed by the federal government, Mississippians see a return of about $2.53 for every tax dollar they contribute, one of the highest on this list.

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2. New Mexico

2. New Mexico
  • Federal Share of State Revenue: 41.80%
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 214K vs. 11.6K vs. 947K
  • State EITC as % of Federal EITC: 25%

New Mexico ranks as the second-most federally dependent state, scoring big in federal funding compared to its tax contributions. For every buck paid in taxes, New Mexico reels in $3.26 in federal aid. With federal funds making up nearly half of its revenue and over 3.5% of its workforce on Uncle Sam's payroll, the Land of Enchantment's economy owes a lot to the federal government.

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1. West Virginia

1. West Virginia
  • Federal Share of State Revenue: 45.16%
  • Welfare Recipients (SNAP vs. TANF vs. Medicaid): 163K vs. 5.6K vs. 614K
  • State EITC as % of Federal EITC: N/A

West Virginia stands out for its reliance on federal support. Despite ranking 49th for Gross Domestic Product per capita, about 4.08% of its workforce opts for federal jobs. Astonishingly, around half of its revenue comes from the federal government, with a $2.36 return for every tax dollar paid, overall making it the nation's most federally dependent state.

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