Federal Funds Hover at a Third of State Revenue

Federal dollars remained the second-largest source of states’ revenue in fiscal 2017, accounting for about $639 billion, or about a third of the $1.97 trillion collected by state governments. Tax collections are states’ leading revenue generator and reached $943 billion in fiscal 2017, or nearly half of state revenue.

According to new research from The Pew Charitable Trusts, 26.3% of the state’s budget came from federal dollars, ranking Wisconsin 45th among states in its ability to harness dollars from Uncle Sam.

Wisconsin has consistently ranked in the bottom half of states with regard to the share of federal dollars it receives, due in part to its middle ranking in household income compared to other states. The amount of federal spending in a given state depends on several factors, including demography, industry mix and presence of major universities.