Special Report
How Your State Funds Welfare and Where It Goes
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State governments spent a collective $581.9 billion on public welfare, or 26% of total government expenditure in 2016. Public welfare spending varies considerably from state to state and is determined by demographic needs, available assistance programs, eligibility policies, tax collections, and other factors.
Approximately 89% of state welfare spending goes toward medical care vendor payments — those made to hospitals, doctors, and other healthcare providers — for programs such as Medicaid. Just 2% goes toward programs that provide cash assistance to low-income families such as Temporary Assistance for Needy Families (TANF), housing assistance, and the Supplemental Nutrition Assistance Program (SNAP, formerly food stamps). The remaining 9% goes toward other public welfare programs.
Using data from the Annual Survey of State and Local Government Finances, 24/7 Wall St. reviewed how each state funds welfare and where the funds go. States were ranked based on total welfare spending per capita.
Money from the federal government, such as categorical and block grants, funds 72% of total state welfare spending. Although block grant programs often come with federal guidelines regarding eligibility for different welfare programs, states can make their own eligibility determinations, which can affect how many of those in need receive public financial assistance. While in some states more than half of all poor families receive TANF benefits, for example, fewer than 10% of poor families do in the states where welfare supports the fewest poor families.
Welfare spending is also determined by demographic needs. Medicaid constitutes a large share of welfare expenditure, and states with older populations tend to spend more on welfare. In eight of the 10 states with the highest welfare spending per capita, the share of the population 65 and over is greater than the 16% national figure.
One major source of public welfare funds is state taxes. Although the spending mix varies by state, many of the states with the highest welfare spending are on the list of the states where Americans are paying the most in taxes.
Click here to see how your state funds welfare and where it goes
24/7 Wall St. reviewed state government welfare expenditure figures from the U.S. Census Bureau’s 2016 Annual Survey of State and Local Government Finances. Data on the share of state welfare spending from federal sources also came from the Annual Survey of State and Local Government Finances. Total spending figures were adjusted for population using resident population estimates for 2016 from the Census Bureau. Data on state tax collections are from the Tax Foundation’s Facts and Figures 2018 report, which includes data for the 2016 fiscal year. Data on the share of residents 65 and over came from the Census Bureau’s 2018 Population Estimates.
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50. Utah
> Total 2016 state welfare spending: $1,112 per capita ($3.4 billion)
> Medical payments as share of state welfare spending: 80.8% (10th lowest)
> State welfare spending from federal funds: 75.1% (14th highest)
> Population 65 and over: 11.1% (the lowest)
> State tax collections per capita: $2,327 (15th lowest)
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49. Georgia
> Total 2016 state welfare spending: $1,124 per capita ($11.6 billion)
> Medical payments as share of state welfare spending: 89.8% (19th highest)
> State welfare spending from federal funds: 64.1% (19th lowest)
> Population 65 and over: 13.9% (4th lowest)
> State tax collections per capita: $2,080 (11th lowest)
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48. North Carolina
> Total 2016 state welfare spending: $1,141 per capita ($11.6 billion)
> Medical payments as share of state welfare spending: 94.6% (3rd highest)
> State welfare spending from federal funds: 89.3% (3rd highest)
> Population 65 and over: 16.3% (22nd lowest)
> State tax collections per capita: $2,580 (21st lowest)
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47. South Dakota
> Total 2016 state welfare spending: $1,210 per capita ($1.0 billion)
> Medical payments as share of state welfare spending: 67.7% (3rd lowest)
> State welfare spending from federal funds: 56.2% (8th lowest)
> Population 65 and over: 16.6% (23rd highest)
> State tax collections per capita: $2,028 (9th lowest)
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46. Florida
> Total 2016 state welfare spending: $1,241 per capita ($25.6 billion)
> Medical payments as share of state welfare spending: 91.1% (14th highest)
> State welfare spending from federal funds: 65.1% (20th lowest)
> Population 65 and over: 20.5% (2nd highest)
> State tax collections per capita: $1,822 (2nd lowest)
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45. Virginia
> Total 2016 state welfare spending: $1,260 per capita ($10.6 billion)
> Medical payments as share of state welfare spending: 85.5% (20th lowest)
> State welfare spending from federal funds: 51.4% (2nd lowest)
> Population 65 and over: 15.4% (10th lowest)
> State tax collections per capita: $2,522 (18th lowest)
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44. Texas
> Total 2016 state welfare spending: $1,308 per capita ($36.5 billion)
> Medical payments as share of state welfare spending: 89.4% (21st highest)
> State welfare spending from federal funds: 69.9% (23rd highest)
> Population 65 and over: 12.6% (3rd lowest)
> State tax collections per capita: $1,868 (3rd lowest)
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43. Nevada
> Total 2016 state welfare spending: $1,326 per capita ($3.9 billion)
> Medical payments as share of state welfare spending: 90.3% (17th highest)
> State welfare spending from federal funds: 76.5% (11th highest)
> Population 65 and over: 15.7% (13th lowest)
> State tax collections per capita: $2,730 (24th highest)
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42. Nebraska
> Total 2016 state welfare spending: $1,361 per capita ($2.6 billion)
> Medical payments as share of state welfare spending: 66.7% (2nd lowest)
> State welfare spending from federal funds: 87.0% (5th highest)
> Population 65 and over: 15.7% (15th lowest)
> State tax collections per capita: $2,682 (25th lowest)
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41. Colorado
> Total 2016 state welfare spending: $1,393 per capita ($7.7 billion)
> Medical payments as share of state welfare spending: 91.7% (10th highest)
> State welfare spending from federal funds: 54.2% (6th lowest)
> Population 65 and over: 14.2% (5th lowest)
> State tax collections per capita: $2,314 (14th lowest)
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40. Wyoming
> Total 2016 state welfare spending: $1,412 per capita ($824.8 million)
> Medical payments as share of state welfare spending: 78.2% (6th lowest)
> State welfare spending from federal funds: 47.6% (the lowest)
> Population 65 and over: 16.5% (24th highest)
> State tax collections per capita: $3,272 (12th highest)
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39. Missouri
> Total 2016 state welfare spending: $1,423 per capita ($8.7 billion)
> Medical payments as share of state welfare spending: 91.8% (9th highest)
> State welfare spending from federal funds: 73.1% (17th highest)
> Population 65 and over: 16.9% (22nd highest)
> State tax collections per capita: $2,010 (7th lowest)
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38. Kansas
> Total 2016 state welfare spending: $1,425 per capita ($4.1 billion)
> Medical payments as share of state welfare spending: 87.2% (24th lowest)
> State welfare spending from federal funds: 53.3% (5th lowest)
> Population 65 and over: 15.9% (19th lowest)
> State tax collections per capita: $2,772 (22nd highest)
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37. Idaho
> Total 2016 state welfare spending: $1,442 per capita ($2.4 billion)
> Medical payments as share of state welfare spending: 84.4% (17th lowest)
> State welfare spending from federal funds: 71.7% (19th highest)
> Population 65 and over: 15.9% (18th lowest)
> State tax collections per capita: $2,506 (17th lowest)
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36. Alabama
> Total 2016 state welfare spending: $1,463 per capita ($7.1 billion)
> Medical payments as share of state welfare spending: 89.2% (23rd highest)
> State welfare spending from federal funds: 87.3% (4th highest)
> Population 65 and over: 16.9% (21st highest)
> State tax collections per capita: $2,041 (10th lowest)
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35. South Carolina
> Total 2016 state welfare spending: $1,478 per capita ($7.3 billion)
> Medical payments as share of state welfare spending: 90.3% (16th highest)
> State welfare spending from federal funds: 66.6% (25th lowest)
> Population 65 and over: 17.7% (10th highest)
> State tax collections per capita: $1,926 (4th lowest)
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34. Illinois
> Total 2016 state welfare spending: $1,523 per capita ($19.5 billion)
> Medical payments as share of state welfare spending: 85.6% (21st lowest)
> State welfare spending from federal funds: 65.9% (23rd lowest)
> Population 65 and over: 15.6% (12th lowest)
> State tax collections per capita: $2,854 (20th highest)
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33. Michigan
> Total 2016 state welfare spending: $1,581 per capita ($15.7 billion)
> Medical payments as share of state welfare spending: 83.4% (13th lowest)
> State welfare spending from federal funds: 84.5% (7th highest)
> Population 65 and over: 17.2% (16th highest)
> State tax collections per capita: $2,762 (23rd highest)
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32. Montana
> Total 2016 state welfare spending: $1,630 per capita ($1.7 billion)
> Medical payments as share of state welfare spending: 95.3% (2nd highest)
> State welfare spending from federal funds: 66.7% (25th highest)
> Population 65 and over: 18.7% (5th highest)
> State tax collections per capita: $2,530 (19th lowest)
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31. Oklahoma
> Total 2016 state welfare spending: $1,664 per capita ($6.5 billion)
> Medical payments as share of state welfare spending: 82.6% (12th lowest)
> State welfare spending from federal funds: 57.0% (9th lowest)
> Population 65 and over: 15.7% (14th lowest)
> State tax collections per capita: $2,165 (13th lowest)
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30. Tennessee
> Total 2016 state welfare spending: $1,713 per capita ($11.4 billion)
> Medical payments as share of state welfare spending: 86.0% (22nd lowest)
> State welfare spending from federal funds: 66.4% (24th lowest)
> Population 65 and over: 16.4% (24th lowest)
> State tax collections per capita: $2,013 (8th lowest)
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29. New Hampshire
> Total 2016 state welfare spending: $1,734 per capita ($2.3 billion)
> Medical payments as share of state welfare spending: 84.8% (18th lowest)
> State welfare spending from federal funds: 58.3% (12th lowest)
> Population 65 and over: 18.1% (9th highest)
> State tax collections per capita: $1,979 (5th lowest)
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28. Washington
> Total 2016 state welfare spending: $1,735 per capita ($12.7 billion)
> Medical payments as share of state welfare spending: 87.3% (25th lowest)
> State welfare spending from federal funds: 62.0% (18th lowest)
> Population 65 and over: 15.4% (11th lowest)
> State tax collections per capita: $3,060 (16th highest)
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27. Wisconsin
> Total 2016 state welfare spending: $1,786 per capita ($10.3 billion)
> Medical payments as share of state welfare spending: 88.1% (25th highest)
> State welfare spending from federal funds: 60.2% (16th lowest)
> Population 65 and over: 17.0% (20th highest)
> State tax collections per capita: $3,050 (18th highest)
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26. Louisiana
> Total 2016 state welfare spending: $1,844 per capita ($8.6 billion)
> Medical payments as share of state welfare spending: 93.2% (5th highest)
> State welfare spending from federal funds: 71.3% (20th highest)
> Population 65 and over: 15.4% (9th lowest)
> State tax collections per capita: $1,987 (6th lowest)
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25. New Jersey
> Total 2016 state welfare spending: $1,880 per capita ($16.7 billion)
> Medical payments as share of state welfare spending: 91.3% (13th highest)
> State welfare spending from federal funds: 59.3% (14th lowest)
> Population 65 and over: 16.1% (21st lowest)
> State tax collections per capita: $3,514 (10th highest)
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24. Indiana
> Total 2016 state welfare spending: $1,908 per capita ($12.7 billion)
> Medical payments as share of state welfare spending: 84.9% (19th lowest)
> State welfare spending from federal funds: 72.7% (18th highest)
> Population 65 and over: 15.8% (16th lowest)
> State tax collections per capita: $2,651 (23rd lowest)
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23. Hawaii
> Total 2016 state welfare spending: $1,931 per capita ($2.8 billion)
> Medical payments as share of state welfare spending: 83.7% (14th lowest)
> State welfare spending from federal funds: 65.4% (21st lowest)
> Population 65 and over: 18.4% (7th highest)
> State tax collections per capita: $4,843 (3rd highest)
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22. Maryland
> Total 2016 state welfare spending: $1,987 per capita ($11.9 billion)
> Medical payments as share of state welfare spending: 80.5% (9th lowest)
> State welfare spending from federal funds: 55.7% (7th lowest)
> Population 65 and over: 15.4% (8th lowest)
> State tax collections per capita: $3,468 (11th highest)
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21. Arizona
> Total 2016 state welfare spending: $2,002 per capita ($13.9 billion)
> Medical payments as share of state welfare spending: 78.6% (7th lowest)
> State welfare spending from federal funds: 78.1% (8th highest)
> Population 65 and over: 17.5% (12th highest)
> State tax collections per capita: $2,124 (12th lowest)
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20. Ohio
> Total 2016 state welfare spending: $2,017 per capita ($23.5 billion)
> Medical payments as share of state welfare spending: 92.3% (7th highest)
> State welfare spending from federal funds: 77.6% (9th highest)
> Population 65 and over: 17.1% (18th highest)
> State tax collections per capita: $2,469 (16th lowest)
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19. California
> Total 2016 state welfare spending: $2,035 per capita ($79.8 billion)
> Medical payments as share of state welfare spending: 92.2% (8th highest)
> State welfare spending from federal funds: 86.8% (6th highest)
> Population 65 and over: 14.3% (6th lowest)
> State tax collections per capita: $3,950 (8th highest)
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18. Iowa
> Total 2016 state welfare spending: $2,037 per capita ($6.4 billion)
> Medical payments as share of state welfare spending: 89.3% (22nd highest)
> State welfare spending from federal funds: 65.8% (22nd lowest)
> Population 65 and over: 17.1% (17th highest)
> State tax collections per capita: $3,053 (17th highest)
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17. North Dakota
> Total 2016 state welfare spending: $2,042 per capita ($1.5 billion)
> Medical payments as share of state welfare spending: 49.4% (the lowest)
> State welfare spending from federal funds: 60.1% (15th lowest)
> Population 65 and over: 15.3% (7th lowest)
> State tax collections per capita: $4,909 (2nd highest)
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16. Pennsylvania
> Total 2016 state welfare spending: $2,043 per capita ($26.1 billion)
> Medical payments as share of state welfare spending: 88.9% (24th highest)
> State welfare spending from federal funds: 74.6% (15th highest)
> Population 65 and over: 18.2% (8th highest)
> State tax collections per capita: $2,924 (19th highest)
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15. Connecticut
> Total 2016 state welfare spending: $2,069 per capita ($7.4 billion)
> Medical payments as share of state welfare spending: 84.2% (16th lowest)
> State welfare spending from federal funds: 67.5% (24th highest)
> Population 65 and over: 17.2% (15th highest)
> State tax collections per capita: $4,249 (5th highest)
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14. Mississippi
> Total 2016 state welfare spending: $2,084 per capita ($6.2 billion)
> Medical payments as share of state welfare spending: 91.3% (12th highest)
> State welfare spending from federal funds: 91.5% (2nd highest)
> Population 65 and over: 15.9% (20th lowest)
> State tax collections per capita: $2,566 (20th lowest)
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13. Arkansas
> Total 2016 state welfare spending: $2,334 per capita ($7.0 billion)
> Medical payments as share of state welfare spending: 91.7% (11th highest)
> State welfare spending from federal funds: 71.2% (21st highest)
> Population 65 and over: 17.0% (19th highest)
> State tax collections per capita: $3,163 (13th highest)
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12. West Virginia
> Total 2016 state welfare spending: $2,419 per capita ($4.4 billion)
> Medical payments as share of state welfare spending: 86.2% (23rd lowest)
> State welfare spending from federal funds: 74.3% (16th highest)
> Population 65 and over: 19.9% (3rd highest)
> State tax collections per capita: $2,804 (21st highest)
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11. Rhode Island
> Total 2016 state welfare spending: $2,472 per capita ($2.6 billion)
> Medical payments as share of state welfare spending: 89.6% (20th highest)
> State welfare spending from federal funds: 53.0% (4th lowest)
> Population 65 and over: 17.2% (14th highest)
> State tax collections per capita: $3,088 (15th highest)
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10. Oregon
> Total 2016 state welfare spending: $2,494 per capita ($10.2 billion)
> Medical payments as share of state welfare spending: 69.3% (4th lowest)
> State welfare spending from federal funds: 70.7% (22nd highest)
> Population 65 and over: 17.6% (11th highest)
> State tax collections per capita: $2,703 (25th highest)
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9. Maine
> Total 2016 state welfare spending: $2,504 per capita ($3.3 billion)
> Medical payments as share of state welfare spending: 71.3% (5th lowest)
> State welfare spending from federal funds: 58.6% (13th lowest)
> Population 65 and over: 20.6% (the highest)
> State tax collections per capita: $3,105 (14th highest)
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8. Kentucky
> Total 2016 state welfare spending: $2,516 per capita ($11.2 billion)
> Medical payments as share of state welfare spending: 90.4% (15th highest)
> State welfare spending from federal funds: 75.5% (13th highest)
> Population 65 and over: 16.4% (23rd lowest)
> State tax collections per capita: $2,655 (24th lowest)
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7. Minnesota
> Total 2016 state welfare spending: $2,561 per capita ($14.1 billion)
> Medical payments as share of state welfare spending: 90.0% (18th highest)
> State welfare spending from federal funds: 57.3% (10th lowest)
> Population 65 and over: 15.9% (17th lowest)
> State tax collections per capita: $4,559 (4th highest)
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6. Delaware
> Total 2016 state welfare spending: $2,577 per capita ($2.4 billion)
> Medical payments as share of state welfare spending: 83.8% (15th lowest)
> State welfare spending from federal funds: 58.3% (11th lowest)
> Population 65 and over: 18.7% (6th highest)
> State tax collections per capita: $3,697 (9th highest)
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5. New Mexico
> Total 2016 state welfare spending: $2,690 per capita ($5.6 billion)
> Medical payments as share of state welfare spending: 93.7% (4th highest)
> State welfare spending from federal funds: 91.5% (the highest)
> Population 65 and over: 17.5% (13th highest)
> State tax collections per capita: $2,619 (22nd lowest)
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4. New York
> Total 2016 state welfare spending: $2,770 per capita ($54.4 billion)
> Medical payments as share of state welfare spending: 98.7% (the highest)
> State welfare spending from federal funds: 76.0% (12th highest)
> Population 65 and over: 16.4% (25th lowest)
> State tax collections per capita: $4,101 (6th highest)
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3. Vermont
> Total 2016 state welfare spending: $2,838 per capita ($1.8 billion)
> Medical payments as share of state welfare spending: 82.4% (11th lowest)
> State welfare spending from federal funds: 77.0% (10th highest)
> Population 65 and over: 19.4% (4th highest)
> State tax collections per capita: $4,950 (the highest)
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2. Massachusetts
> Total 2016 state welfare spending: $2,912 per capita ($19.9 billion)
> Medical payments as share of state welfare spending: 92.3% (6th highest)
> State welfare spending from federal funds: 51.5% (3rd lowest)
> Population 65 and over: 16.5% (25th highest)
> State tax collections per capita: $3,998 (7th highest)
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1. Alaska
> Total 2016 state welfare spending: $3,008 per capita ($2.2 billion)
> Medical payments as share of state welfare spending: 79.6% (8th lowest)
> State welfare spending from federal funds: 60.3% (17th lowest)
> Population 65 and over: 11.8% (2nd lowest)
> State tax collections per capita: $1,405 (the lowest)
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