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These are the most federally dependent states in the U.S.: WalletHub

  • South Dakota ranks 11th in federal funding dependence, receiving 43% of its state budget from federal funding according to WalletHub's report.
  • Kentucky is the second-most federally dependent state, receiving $3.35 for every $1 in taxes, contributing to over 46% of its revenue.
  • West Virginia ranks third, receiving $2.72 in federal funding for every $1 paid in taxes, highlighting its economic reliance on the federal government.
  • Federal funding in states ranges from 18% to 50%, impacting programs like Medicaid and SNAP.
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Argus Leader broke the news in on Wednesday, March 12, 2025.
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