In this article we are going to list the 5 states most dependent on the Federal government. For a detailed coverage of this topic and a more comprehensive list please take a look at the 15 states most dependent on the Federal government.
5. Alabama
Aid per dollar of payment to the Federal government: $2.77
Despite being one of the states most dependent on Federal government, Alabama currently has over $2 billion unspent in federal stimulus funding for schools. Further, the state gets $2.17 per every $1 spent in taxes based on a report in 2020. It has one of the lowest per capita payments to the Federal government which is one of the reasons why its gap in terms of taxes payment and aid received is so high.
4. West Virginia
Aid per dollar of payment to the Federal government: $3.0
As we discussed in our intro, one of the reasons why West Virginia receives so much money from the Federal government is the presence of many of the biggest defense contractors in the world.
3. Mississippi
Aid per dollar of payment to the Federal government: $3.08
Mississippi has the lowest taxes paid to the Federal government per capita in the entire U.S., which is why it comes as no surprise that it is also among the states most dependent on the Federal government. At one point, it was the state most dependent on the Federal government but even though its reliance on the Federal government hasn’t declined, the reliance of other states has continued to increase.
2. New Mexico
Aid per dollar of payment to the Federal government: $3.14
New Mexico has a really low income per capita, which is why its contribution in terms of taxes to the Federal government is quite low, while aid received is still quite high because of the fact that the state is home to significant government and military structures.
1. Kentucky
Aid per dollar of payment to the Federal government: $3.41
Claiming the top spot in our list of states most dependent on the Federal government is Kentucky, which receives significantly high aid for procurement spending from the Federal government, which combined with the state’s average income being really low, means that its payments to the Federal government are low, hence creating a bigger gap in the balance of payments.
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