Percent of State Expenditures from Federal Funds, 2010

During and after the recession, states became much more reliant on the federal government to fund programs, primarily due to an influx of money from the American Recovery and Reinvestment Act, while simultaneously experiencing faltering tax collections.

The percentage of state revenues coming from the federal government has dropped slightly since hitting a peak in 2010, but as the slow economic recovery continues, the overall trend remains the same—an increasing portion of state revenues and expenditures comes from the federal government.

The Council of State Governments, Capitol Ideas, NOV/DEC 2013