Federal aid to Iowa makes up 29.4% of its yearly general fund budget

Federal grants-in-aid to Iowa comprise 29.4 percent of the state’s general fund budget, the 37th highest rate among the 50 states, according to a new study from the Tax Foundation.

The Tax Foundation analysis is based on fiscal-year 2017 numbers, the latest year for which data is available. Nationwide, state budgets contain an average federal funding share of 22.9 percent, according to the study.

Among the programs funded by aid from the federal government are Medicaid payments, public education and help with state infrastructure projects, the Tax Foundation said. States that rely heavily on federal aid tend to have larger numbers of low-income residents and lower levels of state tax revenues, according to the report.

But states that are resource-rich and rely heavily on severance taxes, such as Alaska and North Dakota, have smaller shares of low-income residents. Even so, they tend to receive a higher share of federal revenues.

States’ Reliance on Federal Assistance

RankStateFederal Aid as % of State General Revenues1Montana46.1%2Wyoming44.5%3Louisiana43.7%4Mississippi43.3%5Arizona43.1%6New Mexico40.6%7Alaska39.3%8Kentucky38.9%9West Virginia38.1%10Indiana38.0%11Tennessee37.7%12Missouri37.7%13Arkansas37.2%14Alabama36.8%15New York35.9%16Pennsylvania35.0%17South Dakota34.8%18Georgia34.3%19Maine34.3%20Ohio33.9%21Oklahoma33.8%22New Hampshire33.2%23Michigan33.1%24Vermont33.0%25Rhode Island32.8%26Oregon32.8%27Florida32.8%28Texas32.6%29Nevada32.6%30South Carolina31.9%31Maryland31.2%32Nebraska30.9%33Idaho30.7%34California30.7%35North Carolina30.5%36Colorado30.0%37Iowa29.4%38Washington29.2%39Massachusetts28.7%40New Jersey28.7%41Illinois28.5%42Delaware28.1%43Connecticut27.0%44North Dakota26.8%45Wisconsin26.3%46Minnesota26.0%47Utah24.2%48Kansas23.3%49Virginia21.1%50Hawaii20.7%

Source: Tax Foundation

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