Which States Rely the Most on Federal Aid?
https://taxfoundation.org/states-rely-most-federal-aid/
State-level taxes may be the most visible source of state government revenues for most taxpayers, but it’s important to remember that they are not the only source of state revenue. State governments also receive a significant amount of assistance from the federal government in the form of federal grants-in-aid. Federal aid is given to states for Medicaid, transportation, education, and other means-tested entitlement programs administered by the states.
States differ in the amount of federal aid they receive. The top recipient of federal aid in FY 2014 was Mississippi, which relied on federal assistance for 40.9 percent of its revenue. Other states heavily reliant on federal assistance include Louisiana (40.1 percent), Tennessee (39.9 percent), Montana (39.1 percent), and Kentucky (38.5 percent). As we have previously noted, these states, and others that rely heavily on federal assistance, tend to have modest tax collections and a relatively large low-income population...
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