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 over the past 12 years?
Federal grants to states rose 42 percent from 2008 to 2019.
What is the largest category of federal grants?
Medicaid made up 65 percent of federal grant dollars to the states in 2019.