Federal grants-in-aid to Texas comprise 32.6 percent of the state’s general fund budget, the 28th highest rate among the 50 states, according to a new study from the Tax Foundation.
The Tax Foundation analysis is based on fiscal-year 2017 numbers, the latest year for which data is available. Nationwide, state budgets contain an average federal funding share of 22.9 percent, according to the study.
Among the programs funded by aid from the federal government are Medicaid payments, public education and help with state infrastructure projects, the Tax Foundation said. States that rely heavily on federal aid tend to have larger numbers of low-income residents and lower levels of state tax revenues, according to the report.
But states that are resource-rich and rely heavily on severance taxes, such as Alaska and North Dakota, have smaller shares of low-income residents. Even so, they tend to receive a higher share of federal revenues.
States’ Reliance on Federal Assistance
|Rank||State||Federal Aid as % of State General Revenues|
Source: Tax Foundation