Federal Spending and the States Overview
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Federal spending and the states
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Over 90% of federal spending happens in the states
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How federal spending fits in at the state level
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Federal and state spending on natural
disasters
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Current proposals
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Infrastructure
FY2022 Budget
Becky Thiess
rthiess@pewtrusts.org
pewtrusts.org/fiscal-federalism-initiative
This overview delves into the intricate relationship between federal spending and state finances, highlighting trends, sources of funding, and the impact of federal grants on state budgets, with a focus on the significant role of COVID-19 aid in recent years.
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Presentation Transcript
Federal Spending and the States Rebecca Thiess Rebecca Thiess Fiscal Federalism Initiative Fiscal Federalism Initiative The Pew Charitable Trusts The Pew Charitable Trusts September 2021 September 2021
Overview Overview Federal spending and the states Over 90% of federal spending happens in the states How federal spending fits in at the state level Federal and state spending on natural disasters pewtrusts.org/fiscal-health /fiscal-federalism
pewtrusts.org/fiscal-health /fiscal-federalism
Sources of state funding Sources of state funding pewtrusts.org/fiscal-health /fiscal-federalism
Federal grants as a share of Federal grants as a share of states budgets states budgets Percentage of state revenue by source, FY 1970-2019 pewtrusts.org/fiscal-health /fiscal-federalism
Federal grants vary as a share of Federal grants vary as a share of state budgets state budgets Percentage of state revenue from federal funds, state FY 2019 Note: This data is preliminary and is not yet published. pewtrusts.org/fiscal-health /fiscal-federalism
Trends in grants to states Trends in grants to states COVID COVID- -19 Aid Caused a Sharp Rise in Federal Grants to States in 2020 19 Aid Caused a Sharp Rise in Federal Grants to States in 2020 Percentage change in funding relative to federal FY 2008, adjusted for inflation pewtrusts.org/fiscal-health /fiscal-federalism
Grant aid to states now includes Grant aid to states now includes sizeable COVID aid sizeable COVID aid COVID COVID- -19 Spending Accounted for 25% of Federal Grants to States in 2020 19 Spending Accounted for 25% of Federal Grants to States in 2020 Distribution of funding by program area, federal FY 2020 pewtrusts.org/fiscal-health /fiscal-federalism
Medicaid Dominates FY2019 Medicaid Dominates FY2019 Grants to States Grants to States pewtrusts.org/fiscal-health
Federal pandemic aid Federal pandemic aid pewtrusts.org/fiscal-health /fiscal-federalism
ARPA and state budgets ARPA and state budgets fiscal-federalism-initiative pewtrusts.org/fiscal-health
Current proposals (Becky to fill in text here) FY2022 Budget Infrastructure /fiscal-federalism
Becky Thiess rthiess@pewtrusts.org pewtrusts.org/fiscal-federalism-initiative
