In an election year dominated by Republican candidates demanding that the federal government play a lesser role in our lives, it’s important to note that Red States rank at the top of the list of states that receive the most federal aid.
And part of the reason for that counterintuitive fact is that the most conservative states hypocritically levy low tax rates with the understanding that Washington will make up the difference. So, the bumper sticker mentality that says bring government closer to home – if pursued with a vengeance by the next president — could send shock waves throughout the Red States, particularly in the South.
According to the Tax Foundation, the highest federal aid recipients are: Mississippi (45.3% of the state’s general fund budget), Louisiana (44%), Tennessee (41%), South Dakota (40.8%), Missouri (39.4%), Montana (39%), and Georgia (37.9%). All but Missouri, still a marginally Purple State, lean heavily toward Republicans.
Michigan is in the middle of the pack, ranking No. 23.
The federal aid in question consists of many forms of assistance for low-income households of every age and demographic. Welfare checks, food stamps, WIC money for infants and pregnant women, heating assistance and the Earned Income Tax Credit make up a part of this public aid from Washington. But the figures also include federal Medicaid payments, college tuition assistance, support for infrastructure projects, and housing subsidies for the poor.
The Tax Foundation reports that states with low taxes, particularly those with a minimal income tax, tend to benefit most from federal aid.
As a result, those states at the bottom of the list of public assistance recipients include Blue States with dense populations such as Connecticut, New Jersey, California and Delaware.
However, the reasons for these numbers can be complicated, especially in the Old South. IJReivew.com offers this explanation of why Red States, with a divergent population, are not necessarily conservative with regard to taking Washington money:
“… Due in part to low voter turnout among the impoverished, it may not be that the majority of constituents who vote to turn a state “red” are the ones causing a state to have a higher level of federal aid in its state budget. Another way of putting this is that the majority of poor people who are reliant upon federal aid to make ends meet may not be voting majority Republican in a given state.”
http://www.ijreview.com/2015/01/230371-2-map-shows-red-states-rely-federal-aid-looks-can-deceiving/
http://taxfoundation.org/blog/which-states-rely-most-federal-aid-0
This article uses percentage of budget, but that isn’t a great metric. Blue states typically have larger overall budgets, skewing the federal percentage from absolute assistance.
Per year, red states receive about 1,879 dollars per resident in federal assistance. Blue states get $2,224.
Why do blue states pay more taxes than the red states to the federal government?