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.
How much have federal grants to states increased from 2019 to 2020?
Nationwide, states received 17 percent more in federal dollars in fiscal 2020 compared with fiscal 2019.
What is the largest category of federal grants?
Medicaid made up 49 percent of federal grant dollars to the states in 2020.