States That Get The Most Federal Money

Print Email

10) North Dakota
> Federal spending per capita net of income taxes: $10,438
> Total federal spending per capita: $12,930
> Federal income taxes per capita: $2,492

With the third-smallest population in the U.S., North Dakota’s federal spending per capita was understandably larger than more populous states. North Dakota ranked third in the country for receiving Direct payments other than retirement and disability. What is unusual is the large amount of money that North Dakota farmers received from the federal government — the state ranked second in agricultural assistance in the nation, behind only Texas, which has a population more than 37 times that of North Dakota.

9) Connecticut
> Federal spending per capita net of income taxes: $10,506
> Total federal spending per capita: $15,662
> Federal income taxes per capita: $5,156

Connecticut received almost 50% more government funding per capita than the national average. In 2010, Connecticut was awarded $11.1 billion in military procurement contracts, giving the state the fourth-highest per capita federal defense expenditure — $3,351.88. The Constitution State ranked first for the amount of spending for direct payments other than retirement and disability on a per capita basis. A significant chunk of this amount — almost 60% — was spent solely on medical prescription drug coverage. At $14.1 billion, the amount of federal government expenditures on prescription drugs in Connecticut was more than any other state and over $5 billion more than Florida, the state receiving the second-most federal funds in this category. Connecticut also ranked fifth in per capita federal funding from procurement spending.

8) West Virginia
> Federal spending per capita net of income taxes: $10,568
> Total federal spending per capita: $11,609
> Federal income taxes per capita: $1,041

West Virginia is the only state in the top 10 where federal spending on defense was not a significant contributor to the total amount of money this state received. In fact, West Virginia ranked 48th for federal defense spending — $609 per capita. A large portion of federal spending in West Virginia, almost 16%, was for Medicare benefits, slightly more than the national rate of 15.6%. West Virginia ranked first in the country for the percentage of people using this benefit at nearly 20%. West Virginians also received more federal spending per capita on retirement and disability benefits — which includes Social Security payments, federal retirement and disability benefits, and veterans benefits — than any other state.

Also Read: Ten States Dying for Health Coverage

7) Alabama
> Federal spending per capita net of income taxes: $10,656
> Total federal spending per capita: $11,820
> Federal income taxes per capita: $1,164

Alabama comes in second for the amount of spending per capita — $3,761 — on retirement and disability. The Cotton State also ranks seventh for procurement spending per capita, 78% of which was defense spending, and large parts of which also included the Department of Health and Human Services and the Department of Agriculture. Most of this procurement spending falls under the section of Department of Defense spending. Aside from Virginia and Kentucky, Alabama is the only state on this list that is in the bottom half of states for the amount of grant spending per capita. Grant spending encompasses a vast number of federal agencies and departments within each state.

6) Kentucky
> Federal spending per capita net of income taxes: $12,129
> Total federal spending per capita: $13,198
> Federal income taxes per capita: $1,069

The federal government gave Kentucky more than $7,000 per person on direct payments, which included retirement and disability benefits, unemployment benefits and student assistance — all large programs. Medicare benefits accounted for nearly 57% of such payments. This was  partially due to the high amount of government money going toward prescription drug coverage in the state — $5.46 billion in 2010. Kentucky received almost $1.5 billion more for prescription drug coverage than California, a state with almost nine times its population.