Louisiana ranks 2nd most reliant on federal aid

Louisiana ranks second as the most reliant state on federal funding according to a recent study produced by the Tax Foundation. The report examines which states rely most on federal aid funding as a percentage of their general-fund revenue.

Louisiana state government received federal government funding that amounts to 42.7 percent of Louisiana’s general revenue, which includes all tax revenues. It excludes investment income from state retirement funds or revenue received for providing utility services, according to the analysis.

Aid provided to states comes in the form of competitive federal grants or federal funds can be allocated based on formulas established by statute, the Tax Foundation study says. States that receive a greater share of federal funds tend to have more low-income residents and below-average lower tax collections, the foundation states.

The states most dependent on federal funds were Mississippi, Louisiana and New Mexico. The study used the most recent available data from fiscal-year 2016.

Which States Are Most Dependent on Federal Aid?

State % of Federal Aid Ranking (Most to Least
Mississippi 43.3% 1
Louisiana 42.7% 2
New Mexico 41.2% 3
Arizona 41.2% 4
Kentucky 40.9% 5
Montana 40.6% 6
Tennessee 38.6% 7
Wyoming 38.1% 8
Alaska 37.3% 9
Missouri 37.3% 10
Alabama 37.1% 11
West Virginia 37.1% 12
Arkansas 36.3% 13
Indiana 35.8% 14
Oregon 35.6% 15
Ohio 35.1% 16
Vermont 34.9% 17
Georgia 34.3% 18
Maine 34.1% 19
South Dakota 34.0% 20
Oklahoma 33.9% 21
New York 33.9% 22
Michigan 33.8% 23
Florida 33.7% 24
Texas 33.5% 25
Rhode Island 33.2% 26
Idaho 33.1% 27
Pennsylvania 32.6% 28
California 32.2% 29
New Hampshire 31.9% 30
Iowa 31.4% 31
Nevada 31.3% 32
South Carolina 30.9% 33
North Carolina 30.7% 34
Colorado 30.6% 35
Nebraska 30.5% 36
Maryland 30.4% 37
Washington 30.2% 38
Massachusetts 28.9% 39
Illinois 28.8% 40
New Jersey 28.4% 41
Connecticut 27.9% 42
Delaware 27.2% 43
Minnesota 26.7% 44
Wisconsin 26.3% 45
Utah 25.7% 46
North Dakota 23.8% 47
Kansas 23.0% 48
Hawaii 22.7% 49
Virginia 21.1% 50

Source: Tax Foundation; U.S. Census Bureau

This is a revised version of an article first published by Watchdog.org.

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