Question: Regarding the Trump administration’s freeze on federal grants, won’t this hurt red states just as bad?
Answer: A federal judge temporarily blocked the freeze before it could take effect Tuesday. But to your point, yes, President Donald Trump won nine of the 10 states most reliant on federal grants, according to a nationwide analysis of the share of state revenue from federal funding. By contrast, he lost seven of the 10 least dependent states, according to the report, which was based on fiscal year 2022 data and published in September by the Pew Charitable Trusts, 808ne.ws/4aAVu3U. Hawaii was in the latter group, at No. 49.
The federal share of state revenue “reflects how much funding states receive from the U.S. government to help pay for public services, such as health care, education and training, transportation, and infrastructure,” the report said.
Louisiana was the most dependent, with 50.5% of its state revenue coming from federal dollars, the report said, followed by Alaska (50.2%), Arizona (49.7%), South Dakota (49.4%), Wyoming (49%), Missouri (47%), Kentucky (46.4%), West Virginia (45.1%), Mississippi (45.1%) and Rhode Island (43.8%), the report said. All but Rhode Island helped Trump win his second term.
Nationwide, federal grants were the second-largest source of state revenue, accounting for an average of 36.4% of all money state governments collected in fiscal year 2022. The report found Hawaii’s percentage of state revenue from federal funds that year was 25.9%, below the national average and higher only than North Dakota’s 22%.
Nationwide, tax collections were states’ leading revenue source, accounting for an average 48.3% of their total revenue. The rest came from service charges (such as public university tuition and road tolls), local governments and miscellaneous fees, the report said.
Pew said it assesses the federal share of state revenue because state and federal budgets are “inseparably linked,” and “any policy changes, major pieces of legislation, or disruptions in federal funding can affect state finances in many ways.”
That was the case Tuesday, as state and local officials across the country scrambled to make sense of the Trump administration’s order (808ne.ws/3EdAAvE) to “temporarily pause” trillions of dollars in federal grants and loans to ensure that the funding aligns with Trump’s priorities. A federal judge in District Columbia temporarily blocked the order, in response to a lawsuit filed by Democracy Forward, which argued it was unlawful. The judge is expected to issue a longer-term decision Monday.
State leaders in Louisiana, which relies heavily on federal funding and where Trump won over 60% of the vote in November, were among the Trump backers expressing concern Tuesday. Republican Gov. Jeff Landry, state Treasurer John Fleming, Senate President Cameron Henry and Speaker Phillip DeVillier issued a joint statement: “President Trump was elected on a mandate to cut government waste and increase the impact of every federal taxpayer dollar, a goal we wholeheartedly embrace. Our administration is thoroughly evaluating President Trump’s new order and seeking clarity as to the depth of this action. We believe that we are placing adequate resources into the state coffers to ensure stability for the time being. We urge (the Office of Management and Budget) to develop a responsible runway to untangle us from any unnecessary and egregious policies without jeopardizing the financial stability of the state.”
Mahalo
On Hawaiian Airlines Flight 7 on Jan. 1, I was coming home from Las Vegas and had a mild emergency that required medical attention. Thankfully, there were doctors on board to help me. I want to thank the flight attendants and doctors who took care of me and helped me land safely. — Very, very grateful senior
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