Which States Bring More Into the US Treasury Than They Take Out

According to a recent analysis published by the publication Axios, only 13 US states send more money to the federal budget than they receive back. Three of them have large populations of people from the former USSR.

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Why is it important

The Trump administration's push for greater financial self-sufficiency for states is running up against the reality that many rely on federal funds for everything from disaster relief to food assistance.

What's going on

According to a 2024 report from the Rockefeller Institute of Government, taking into account 2022 data (excluding COVID-19-related spending), the lowest per capita balance of payments were in:

• Massachusetts (- $4),
• New Jersey (- $4),
• Washington (-$3).

On the subject: 14 states where you can buy a home with a salary of less than $75 thousand per year

The largest balance was had by:

• New Mexico ($14),
• Maryland ($12),
• Virginia ($11).

How it works

A state's balance of payments reflects how much federal money it receives (through Medicaid and SNAP, for example) compared to how much money its residents and businesses send to the federal government (through income or labor taxes).

• A negative value means that the state sends more to the federal budget than it receives.
• A positive value means the state receives more than it sends out.

Details

"States with large defense contracting sectors and more military bases receive more federal defense funds, and federal salaries are unevenly distributed and concentrated in states with large numbers of federal employees," the report notes.

• This partly explains the situation in states like Virginia and Maryland: They are relatively wealthy, but they have a lot of federal workers, contractors and agencies because of their proximity to Washington, D.C.

What we observe

How President Trump's plans to cut federal spending will impact state levels is not yet known, but it could result in unpredictable changes in these figures.

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If we take the four states (California, New York, Illinois and Florida) where the largest number of people from post-Soviet countries live, we will see that a positive balance of payments is observed only in Florida.

California: The balance of payments per capita is -$3 in 239, excluding COVID-2022-related expenses.

New York: The balance of payments per capita is -$2 in 253, excluding COVID-2022-related expenses.

Illinois: The balance of payments per capita is -$1 in 313, excluding COVID-2022-related expenses.

Florida: The balance of payments per capita is $805 in 2022, excluding COVID-19-related costs.

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