West Virginia is the Second-Most Reliant State on Federal Funding

March 17, 2023

Mountaineer News

WV Federal Funding

(Mountaineer News) - A recent WalletHub report reveals that West Virginia ranks as the second most reliant state on federal funding, following closely behind Alaska. The study measured both the state residents' dependency on federal funds, as well as federal funding's share of state revenue in 2020.

West Virginia was found to be the most dependent state in terms of its residents' reliance on federal funding and ranked ninth in terms of state government's dependency.

The report's author, Michael J. Hicks, Director of Ball State's Center for Business and Economic Research, identifies three ways in which the federal government subsidizes poorer areas, including higher income taxes for the wealthy, higher Medicaid cost coverage, and direct payments to residents for programs like Temporary Assistance for Needy Families, Supplemental Nutrition Assistance Program, and Supplemental Security Income. Hicks argues that these modifications improve the lives of impoverished families.

The study also found that West Virginia ranks 49th in gross domestic product per capita. Additionally, the report indicates that states that voted blue in the 2020 presidential election are generally less dependent on federal funding than red states, with red states averaging a ranking of 20.32 and blue states averaging 30.68 among the 50 states.