Pew's Fiscal Federalism Initiative is currently exploring the impact of federal deficit reductiontax 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.
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Total federal grants to states are 18 percent above pre-recession levels for federal fiscal year 2014, after adjusting for inflation. (See "Federal Grants to States Up Since 2008.") The increase since fiscal 2008 was driven almost entirely by growth in Medicaid and other health programs, such as the Children's Health Insurance Program. Medicaid is by far the largest grant to states. (See... Read More
Medicaid is by far the largest federal grant to states, accounting for about 62 percent of total grant funding. The next-largest funding area is income security (temporary cash assistance, employment services, school-provided meals, and similar programs), which at 16 percent is about one-fourth the size of Medicaid. Medicaid was the main driver of the 18 percent increase in total federal grants... Read More
Federal grants to states are about 18 percent higher overall, after adjusting for inflation, than they were in federal fiscal year 2008, when the recession began. Federal stimulus aid to states resulted in a temporary spike during and immediately after the recession. That aid has been almost entirely phased out, but total grants to states remain above pre-recession levels. Medicaid increases are... Read More