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News / Northwest

New study ranks all 50 states by federal dependency; Washington among lowest

By Karlee Van De Venter, Tri-City Herald, Kennewick
Published: March 14, 2025, 4:33pm

As the Donald Trump administration makes massive changes to federal departments, programs and contracts, impacts are being reported across the country.

But residents in some states may be feeling the burn of these losses more than others. Some states can be considered more federally dependent than others.

The personal finance site WalletHub analyzed each state and its relationship with the federal government in order to rank the most and least federally dependent states.

“For every dollar residents of the top states pay in taxes, they get several dollars back in federal funding, which often leads to higher-quality infrastructure, education, public health and more,” WalletHub analyst Chip Lupo said in a release.

The ranking is based on three key metrics: return on taxes to the federal government, share of federal jobs, and the share of federal funding as state revenue.

WalletHub reports the top 10 most federally dependent states are:

1. Alaska

2. Kentucky

3. West Virginia

4. Mississippi

5. South Carolina

6. New Mexico

7. Louisiana

8. Arizona

9. Indiana

10. Alabama

And the 10 least federally dependent states are:

1. New Jersey

2. California

3. Delaware

4. Massachusetts

5. Utah

6. Kansas

7. Washington

8. Illinois

9. Colorado

10. Iowa

Washington’s ranking comes from low placement in numerous categories, including 48th for return on taxes paid to the federal government, and 38th for federal funding as a share of state revenue.

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