Pew's Fiscal Federalism Initiative is currently exploring the impact of federal tax and spending changes on the states by investigating:
- The sensitivity of state budgets to changes in federal spending;
- The interconnectedness of federal and state tax policies;
- How federal regulatory policy has a fiscal impact on states; and
- The impact of federal tax and spending policies on state economies and the potential indirect effect on state finances.
Our original, non-partisan research gives both state and federal policy makers the information they need to make informed fiscal decisions.
Research & AnalysisView All
States receive federal grants to help fund programs in areas ranging from education to transportation to health care. Federal grants accounted for an average of 30 percent of total state revenue in 2013, but states’ reliance on this revenue source varies widely. At nearly 43 percent, Mississippi had the largest share of revenue from federal grants, while North Dakota had the smallest at 19... Read More
Federal grants to states are about 30 percent higher overall, after adjusting for inflation, than they were in 2008, when the recession began. Federal stimulus aid to states resulted in a spike during and immediately after the recession. That aid was almost entirely phased out by 2013, but total grants to states remain above prerecession levels. Medicaid increases are the main drivers of this... Read More
After the Great Recession, the share of states’ revenue coming from federal grants hit a historic high of 35.5 percent in 2010. Increased federal dollars from economic stimulus funds and reduced state tax collections meant that federal dollars made up a bigger proportion of states’ revenue than at any time in at least 50 years. After tapering off slightly in 2011, the percentage of... Read More