Federal dollars are the second-largest source of state revenue, accounting for about $1 of every $3 states take in. These funds support a wide range of programs and projects, such as Medicaid and transportation. Grants to states have increased over the past decade, largely because of growing Medicaid spending.
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How much have federal grants to states increased from 2019 to 2020?
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Nationwide, states received 17 percent more in federal dollars in fiscal 2020 compared with fiscal 2019.
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What is the largest category of federal grants?
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Medicaid made up 49 percent of federal grant dollars to the states in 2020.
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