Please note: This analysis, Federal Grants to States Up Since 2008, was updated on Sept. 21, 2015.
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 the main driver of this upward trend, while funding for other programs such as education and transportation is declining.(See "Trends in Federal Grants Vary Between Health and NonHealth Programs.")