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Federal Share of State Revenue Rises for Third Year
Route Fifty: The share of states’ revenue made up by federal dollars rose in fiscal year 2016 for the third year in a row, largely because of growth in Medicaid grants to states. The federal government provided 32.6 percent of 50-state revenue in fiscal 2016—the third-largest share on record—up from 31.9 percent in fiscal 2015.
A majority of states—30—saw gains in federal dollars as a share of state revenue in fiscal 2016. Health care grants have been the main driver of increases in federal funding to states in recent years, with Medicaid alone accounting for two-thirds of federal grants to states.
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