The importance of federal funding in state spending

 Axios - Federal funding makes up 40% or more of overall revenue in nearly half of U.S. states, per the latest available data.

• The Trump administration and congressional Republicans are looking for ways to cut federal spending, and some states may be more vulnerable than others to major decreases, Axios' Alex Fitzpatrick reports.

As of 2022, federal funding accounts for the greatest shares of state revenue in Louisiana (50.5%), Alaska (50.2%) and Arizona (49.7%). It accounts for the smallest shares in North Dakota (22.2%), Hawai'i (25.9%) and Virginia (27.6%).

Total federal grants exceeded $1 trillion in 2022 for the first time.States have been getting more federal funding than usual in the past few years due to COVID and infrastructure spending.  Share this story.