{"id":1544803,"date":"2025-07-02T00:30:00","date_gmt":"2025-07-02T04:30:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1544803"},"modified":"2025-07-02T00:30:00","modified_gmt":"2025-07-02T04:30:00","slug":"new-mexico-is-the-most-dependent-state-on-the-federal-govt-new-jersey-the-least","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/new-mexico-is-the-most-dependent-state-on-the-federal-govt-new-jersey-the-least\/1544803\/","title":{"rendered":"New Mexico Is The Most-Dependent State On The Federal Govt, New Jersey The Least"},"content":{"rendered":"

New Mexico Is The Most-Dependent State On The Federal Govt, New Jersey The Least<\/span><\/p>\n

\n

How reliant is your state on Uncle Sam\u2019s wallet?<\/strong><\/p>\n

Every year, billions in\u00a0federal tax dollars<\/strong>\u00a0are redistributed to the 50 states and the District of Columbia through grants, contracts, and benefit programs.<\/p>\n

Visual Capitalist’s Pallavi Rao ranks<\/a> the states to see who benefits the most from the flows so readers can see the fiscal winners and losers at a glance.<\/p>\n

Data for this visualization comes from\u00a0MoneyGeek<\/a>, which uses Census Bureau and Bureau of Economic Analysis figures.<\/p>\n

Their\u00a0dependency score<\/em>\u00a0blends two metrics:<\/strong> the state\u2019s return\u2010on\u2010taxes ratio and the share of state revenues coming from federal sources.<\/p>\n

<\/a><\/p>\n

\u2139\ufe0f\u00a0Return on taxes<\/strong>\u00a0measures how much state residents\u2014including businesses\u2014receive in federal payments for every $1 paid in tax to the federal government.<\/em><\/p>\n

Importantly, this data does not include Medicaid payments.<\/em><\/p>\n

Finally, a state\u2019s political affiliation is based on its voting history in the past five presidential elections.<\/em><\/p>\n

Ranked: States That Need the Federal Government the Most<\/h2>\n

New Mexico<\/strong>\u00a0tops the 2024 list for states most dependent on the federal government, with a perfect score of 100.<\/p>\n

Its residents receive $3.42 for every tax dollar they send to Washington, while the state covers nearly a third of its budget with federal funds.<\/p>\n

Rank
\n\t\t\tState
\n\t\t\tPolitical Affiliation
\n\t\t\tDependency Score
\n\t\t\tReturn on Taxes
\n\t\t\t% of State Revenues
\n\t\t\tFrom Federal Funding
\n\t\t1
\n\t\t\tNew Mexico
\n\t\t\tBlue
\n\t\t\t100
\n\t\t\t$3.42
\n\t\t\t30.7%
\n\t\t2
\n\t\t\tWest Virginia
\n\t\t\tRed
\n\t\t\t95
\n\t\t\t$2.91
\n\t\t\t27.0%
\n\t\t3
\n\t\t\tAlaska
\n\t\t\tRed
\n\t\t\t94
\n\t\t\t$2.65
\n\t\t\t29.0%
\n\t\t4
\n\t\t\tMississippi
\n\t\t\tRed
\n\t\t\t91
\n\t\t\t$2.66
\n\t\t\t25.9%
\n\t\t5
\n\t\t\tDistrict of Columbia
\n\t\t\tBlue
\n\t\t\t88
\n\t\t\t$1.71
\n\t\t\t32.2%
\n\t\t6
\n\t\t\tAlabama
\n\t\t\tRed
\n\t\t\t86
\n\t\t\t$1.90
\n\t\t\t26.7%
\n\t\t7
\n\t\t\tKentucky
\n\t\t\tRed
\n\t\t\t84
\n\t\t\t$1.68
\n\t\t\t30.1%
\n\t\t8
\n\t\t\tArizona
\n\t\t\tRed
\n\t\t\t80
\n\t\t\t$1.62
\n\t\t\t28.5%
\n\t\t9
\n\t\t\tMontana
\n\t\t\tRed
\n\t\t\t80
\n\t\t\t$1.43
\n\t\t\t31.8%
\n\t\t10
\n\t\t\tMaine
\n\t\t\tBlue
\n\t\t\t79
\n\t\t\t$1.78
\n\t\t\t23.3%
\n\t\t11
\n\t\t\tHawaii
\n\t\t\tBlue
\n\t\t\t77
\n\t\t\t$1.94
\n\t\t\t20.6%
\n\t\t12
\n\t\t\tLouisiana
\n\t\t\tRed
\n\t\t\t76
\n\t\t\t$1.33
\n\t\t\t29.8%
\n\t\t13
\n\t\t\tMaryland
\n\t\t\tBlue
\n\t\t\t76
\n\t\t\t$1.79
\n\t\t\t21.2%
\n\t\t14
\n\t\t\tVirginia
\n\t\t\tBlue
\n\t\t\t72
\n\t\t\t$1.91
\n\t\t\t18.2%
\n\t\t15
\n\t\t\tSouth Carolina
\n\t\t\tRed
\n\t\t\t64
\n\t\t\t$1.60
\n\t\t\t19.5%
\n\t\t16
\n\t\t\tIdaho
\n\t\t\tRed
\n\t\t\t61
\n\t\t\t$1.15
\n\t\t\t21.8%
\n\t\t17
\n\t\t\tMichigan
\n\t\t\tBlue
\n\t\t\t60
\n\t\t\t$0.99
\n\t\t\t22.9%
\n\t\t18
\n\t\t\tNorth Dakota
\n\t\t\tRed
\n\t\t\t60
\n\t\t\t$0.96
\n\t\t\t26.6%
\n\t\t19
\n\t\t\tOklahoma
\n\t\t\tRed
\n\t\t\t60
\n\t\t\t$1.30
\n\t\t\t20.7%
\n\t\t20
\n\t\t\tWyoming
\n\t\t\tRed
\n\t\t\t58
\n\t\t\t$0.91
\n\t\t\t28.9%
\n\t\t21
\n\t\t\tPennsylvania
\n\t\t\tBlue
\n\t\t\t55
\n\t\t\t$0.92
\n\t\t\t24.0%
\n\t\t22
\n\t\t\tIndiana
\n\t\t\tRed
\n\t\t\t55
\n\t\t\t$0.92
\n\t\t\t25.7%
\n\t\t23
\n\t\t\tOregon
\n\t\t\tBlue
\n\t\t\t50
\n\t\t\t$1.21
\n\t\t\t17.5%
\n\t\t24
\n\t\t\tVermont
\n\t\t\tBlue
\n\t\t\t49
\n\t\t\t$1.50
\n\t\t\t12.8%
\n\t\t25
\n\t\t\tConnecticut
\n\t\t\tBlue
\n\t\t\t49
\n\t\t\t$1.09
\n\t\t\t17.6%
\n\t\t26
\n\t\t\tNew Hampshire
\n\t\t\tBlue
\n\t\t\t44
\n\t\t\t$0.90
\n\t\t\t21.0%
\n\t\t27
\n\t\t\tArkansas
\n\t\t\tRed
\n\t\t\t42
\n\t\t\t$0.85
\n\t\t\t22.7%
\n\t\t28
\n\t\t\tNorth Carolina
\n\t\t\tRed
\n\t\t\t42
\n\t\t\t$0.88
\n\t\t\t21.5%
\n\t\t29
\n\t\t\tSouth Dakota
\n\t\t\tRed
\n\t\t\t39
\n\t\t\t$0.97
\n\t\t\t15.0%
\n\t\t30
\n\t\t\tIowa
\n\t\t\tRed
\n\t\t\t38
\n\t\t\t$0.97
\n\t\t\t15.5%
\n\t\t31
\n\t\t\tRhode Island
\n\t\t\tBlue
\n\t\t\t35
\n\t\t\t$0.76
\n\t\t\t25.7%
\n\t\t32
\n\t\t\tTennessee
\n\t\t\tRed
\n\t\t\t35
\n\t\t\t$0.81
\n\t\t\t20.9%
\n\t\t33
\n\t\t\tKansas
\n\t\t\tRed
\n\t\t\t31
\n\t\t\t$0.89
\n\t\t\t16.8%
\n\t\t34
\n\t\t\tTexas
\n\t\t\tRed
\n\t\t\t29
\n\t\t\t$0.75
\n\t\t\t22.9%
\n\t\t35
\n\t\t\tUtah
\n\t\t\tRed
\n\t\t\t29
\n\t\t\t$0.79
\n\t\t\t18.7%
\n\t\t36
\n\t\t\tFlorida
\n\t\t\tRed
\n\t\t\t28
\n\t\t\t$0.79
\n\t\t\t18.9%
\n\t\t37
\n\t\t\tNevada
\n\t\t\tBlue
\n\t\t\t28
\n\t\t\t$0.88
\n\t\t\t16.4%
\n\t\t38
\n\t\t\tWisconsin
\n\t\t\tBlue
\n\t\t\t26
\n\t\t\t$0.85
\n\t\t\t17.5%
\n\t\t39
\n\t\t\tGeorgia
\n\t\t\tRed
\n\t\t\t26
\n\t\t\t$0.78
\n\t\t\t19.1%
\n\t\t40
\n\t\t\tColorado
\n\t\t\tBlue
\n\t\t\t21
\n\t\t\t$0.78
\n\t\t\t17.5%
\n\t\t41
\n\t\t\tOhio
\n\t\t\tRed
\n\t\t\t19
\n\t\t\t$0.66
\n\t\t\t21.0%
\n\t\t42
\n\t\t\tDelaware
\n\t\t\tBlue
\n\t\t\t19
\n\t\t\t$0.46
\n\t\t\t26.3%
\n\t\t43
\n\t\t\tIllinois
\n\t\t\tBlue
\n\t\t\t18
\n\t\t\t$0.76
\n\t\t\t17.5%
\n\t\t44
\n\t\t\tMassachusetts
\n\t\t\tBlue
\n\t\t\t17
\n\t\t\t$0.60
\n\t\t\t22.5%
\n\t\t45
\n\t\t\tMissouri
\n\t\t\tRed
\n\t\t\t16
\n\t\t\t$0.70
\n\t\t\t18.7%
\n\t\t46
\n\t\t\tNebraska
\n\t\t\tRed
\n\t\t\t11
\n\t\t\t$0.65
\n\t\t\t18.1%
\n\t\t47
\n\t\t\tNew York
\n\t\t\tBlue
\n\t\t\t8
\n\t\t\t$0.65
\n\t\t\t17.7%
\n\t\t48
\n\t\t\tCalifornia
\n\t\t\tBlue
\n\t\t\t8
\n\t\t\t$0.73
\n\t\t\t14.5%
\n\t\t49
\n\t\t\tMinnesota
\n\t\t\tBlue
\n\t\t\t7
\n\t\t\t$0.71
\n\t\t\t14.6%
\n\t\t50
\n\t\t\tWashington
\n\t\t\tBlue
\n\t\t\t0
\n\t\t\t$0.59
\n\t\t\t16.5%
\n\t\t51
\n\t\t\tNew Jersey
\n\t\t\tBlue
\n\t\t\t0
\n\t\t\t$0.51
\n\t\t\t17.2%<\/p>\n

Note: The tax return ratio was given double-weight in the final score.<\/em><\/p>\n

West Virginia, Alaska, and Mississippi follow closely, each exceeding $2.60 in returns and relying on federal transfers for more than a quarter of state revenues.<\/p>\n

The outlier is the\u00a0District of Columbia<\/strong>: despite a lower tax return multiple ($1.71), 32% of its revenue comes from the federal government. This is unsurprising given its role as the nation\u2019s administrative hub.<\/p>\n

Federal Dependency: Red vs. Blue States<\/h2>\n

MoneyGeek\u2019s ranking reveals a partisan tilt: seven of the states with the top 10 dependency scores are red, including conservative strongholds such as Alabama, Kentucky, and Montana.<\/p>\n

Meanwhile, 11 of the 20 net tax recipient states have voted Republican in at least three of the past five presidential elections.<\/p>\n

Yet political color is not destiny. Deep-blue New Mexico and D.C. also sit near the top.<\/p>\n

MoneyGeek\u2019s analysis points to economic structure rather than ideology: energy extraction,\u00a0military installations<\/a>, and a\u00a0high share of retirees<\/a>\u00a0often correlate with greater federal inflows.<\/p>\n

The Big List of Donor States<\/h2>\n

At the opposite end,\u00a0New Jersey<\/strong>\u00a0and\u00a0Washington<\/strong>\u00a0score zero, receiving roughly half a dollar back for every dollar paid their residents pay in taxes.<\/p>\n

California, New York, and Minnesota also run sizable \u201cdeficits,\u201d each collecting less than 75 cents on the dollar.<\/p>\n

These donor states tend to have large, diversified economies and higher-than-average\u00a0household incomes<\/a>, boosting tax receipts while limiting eligibility for certain federal aid programs.<\/p>\n

Their contributions effectively subsidize public services elsewhere\u2014fueling\u00a0perennial debates<\/strong>\u00a0over tax fairness and redistribution.<\/p>\n

For more insights, cross-reference this post with\u00a0Visualizing $29 Trillion Economy by State<\/a>\u00a0on\u00a0Voronoi<\/strong>, the new app from Visual Capitalist.<\/em><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nTue, 07\/01\/2025 – 20:30<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/political\/new-mexico-most-dependent-state-federal-govt-new-jersey-least<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

New Mexico Is The Most-Dependent State On The Federal Govt, New Jersey The Least How reliant is your state on Uncle Sam\u2019s wallet? Every year,…<\/p>\n","protected":false},"author":0,"featured_media":1544804,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1544803","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1544803","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1544803"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1544803\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1544804"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1544803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1544803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1544803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}