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5 States Most Dependent on Federal Support

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Federal funding is critical in supporting state economies across the United States. While all states receive some federal aid, certain states depend more heavily on this assistance to maintain fiscal stability and provide essential services to their residents. This article explores some states that rely significantly on federal funds, examining the factors contributing to their dependence and the potential consequences of reduced federal support.

New Mexico

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New Mexico makes the most of federal funds, receiving a significant return of $3.42 for every dollar sent to Washington. This translates to a heavy reliance on federal support, with 30.7% of the state’s budget coming from federal sources. Consequently, New Mexico has a high dependency score of 100, indicating that critical public services and the state’s economy would likely struggle without this federal funding.

West Virginia

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This state falls close behind in second place, heavily reliant on federal aid. They only receive $2.91 back for every tax dollar sent to Washington, with federal funds making up 27% of their revenue. This dependence keeps key infrastructure and public services afloat, a challenge amplified by the state’s mountainous terrain.

Alaska

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Given its vast oil reserves, Alaska’s high dependency on federal funding might surprise you. However, the state’s remoteness translates to a 93.5 dependency score. With a tax return of $2.65 per dollar, Alaska relies heavily on federal funds, constituting 29% of its revenue. The support goes to Alaska’s far-flung communities.

Mississippi

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While Mississippi has plenty of charm, it doesn’t translate to economic prosperity, reflected in its dependency score of 90.5 For every tax dollar, the state recoups just $2.66, with the federal government contributing 25.9% of its revenue. This federal aid is important, as state officials rely on it to tackle Mississippi’s notoriously high poverty rates.

District of Columbia

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Federal dollars comprise nearly 32.2% of its budget, but the district only receives $1.71 for every tax dollar it sends. The high dependency score of 87.7 reflects the critical role this funding plays in maintaining public safety and essential city services for the nation’s capital.

Written by Jace Lamonica