Federalism

Federal Aid to Many States Tops 40 Percent of Local Revenue

He who takes the king's coin ...

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For many states, the amount of financial support they receive from the federal government is equal to 40 percent of their own state revenues—and in some cases the ratio is higher, a new graphic published by the Tax Foundation shows.

New Mexico sports the seventh-largest ratio of federal funding—referred to in Census data as "intergovernmental revenue"—to state tax revenue, at 42.6 percent. Florida ranks 23rd, at 36.9 percent. The two states act as bookends around a range of 12 states (including D.C.) within three percentage points of the 40 percent mark. (Alabama, with a 38.2 percent ratio, is within that range, ranked 19th.)