A new study from the Tax Foundation, published in The Center Square, reveals that the more than one-third of Michigan’s general fund comes from the federal government through grants in aid. The Tax Foundation reports that Michigan ranks No. 23 among all the states for proportion of the state budget funded by federal dollars.
Federally funded programs in the Michigan state budget account for about 33% of yearly spending, according to the Tax Foundation. Federal programs include Medicaid, infrastructure programs like federal highways and funding for public education.
Of the 50 states, Montana has the highest percentage of its budget funded by the feds at more than 46%. Wyoming came in at second place with 44.5% and Louisiana was third with 43.7% federal funding. Hawaii is at the bottom of the list, receiving just 20 percent of its funding from Washington.
Across the nation, the Tax Foundation reports the average percentage of federal funding in state budgets is around 23%. The study was completed using data from 2017.
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