Funding From Federal Grants Varies as a Share of State Budgets
States receive federal grants to help fund programs in areas ranging from education to transportation to health care. Federal grants accounted for an average of 31.6 percent of total state revenue in state fiscal year 2012, but states’ reliance on this revenue source varies widely. At about 45 percent, Mississippi had the largest share of revenue from federal grants, while Alaska had the smallest at 20 percent.
For state-specific data on federal grants as a share of state revenue and an interactive analysis of recent state-by-state trends, see Fiscal 50: State Trends and Analysis.