Federal Grants to States Rose 42% Over the Last 11 Years

Growth, however, has fluctuated during that span

Federal Grants to States Rose 42% Over the Last 11 Years

Overview

Federal grants to states are 42 percent higher overall, after adjusting for inflation, than they were when the Great Recession began in 2008, but the growth has not been steady. Federal stimulus aid to states resulted in a spike during and immediately after the recession, with total grants increasing by 55 percent in the first year after passage of the American Recovery and Reinvestment Act of 2009. By 2013, however, that temporary aid had been nearly phased out, and grant dollars declined nearly 30 percent from the 2009 peak. Then, in 2014, federal grants to states began climbing again, and they remain well above pre-recession levels. Medicaid spending increases are the main drivers of this upward trend; funding for other programs, such as education and transportation, has been declining relative to 2008 levels. (See "Health Care Has Dominated Federal Spending Choices for More Than a Decade.")

 

Fact Sheet

Health Care Has Dominated Federal Spending Choices for More Than a Decade

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Fact Sheet

Health Care Has Dominated Federal Spending Choices for More Than a Decade

States get roughly a third of their revenue from the federal government—funding that pays for health care, schools, roads, public safety, and other programs.

Fact Sheet

Medicaid Makes Up Most Federal Grants to States

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Fact Sheet

Medicaid Makes Up Most Federal Grants to States

Medicaid is by far the largest federal grant to states, making up 65 percent of total grant funding in 2018.