California received the most federal aid of any state: $116.0 billion. Rounding out the top five were New York ($79.2 billion), Texas ($68.2 billion), Florida ($41.7 billion), and Pennsylvania ($41.0 billion).
States that relied the most on federal grants varied in size, demographic makeup, and location. Vermont relied on federal grants the most: 35.8% of its budget came from the federal government. West Virginia followed at 34.1%, and Alaska at 33.9%.
On a per-person basis, Washington, DC, received the most: $6,983. Wyoming received more than any other state, at $6,894 per person. Georgia received the least federal funding per person, with $1,807 in 2020. Florida, despite receiving more federal funding than 46 other states, received the second least per person: $1,937.
Federal grants are divided into two categories: formula grants and competitive grants. Formula grants are based on such factors as population size, poverty rates, or specific needs of the area. Competitive grants require state and local governments to submit applications outlining their plans to use the grant money effectively.