Think you know which states depend most on Washington? Pioneer’s new Dependency Index may change your mind. Alaska ranks most dependent on federal funds, and Idaho ranks least. Check out where your state ranks here! https://loom.ly/6LMwO0c
US DataLabs Dependency Index
State Dependency Index
We are all dependent to some degree on the money spent by the federal government. In 2023, the United States government had roughly 2.2 million civilian employees and spent $6.16 trillion. This largesse varies by state.
To understand which states benefit the most from federal spending, Pioneer Institute compiled an index ranking the states based on how dependent they are on the federal government. We included both direct federal transfers to states and federal civilian and military payroll by state. Including both provides as comprehensive a view of the relationship between the federal government and individual states as possible.
The numbers are truly Leviathan-like. In this century, the federal budget has grown from 17% of GDP to 23% of GDP. That growth is unsustainable. How these enormous sums are dispensed to the states tells us something about both our present and future. To paraphrase a certain former president, show me your budget and I’ll show you your priorities.
To learn more, go here.
Methodology and Impact here:
Fact of the day