Business & Tech

Most, Least Federally Dependent States: Where Minnesota Ranks

Overall, "red" states are more reliant on federal funding than "blue" states, according to the study, but there are several exceptions.

The study compared all 50 states across two key dimensions: "state residents’ dependency" and "state government’s dependency."
The study compared all 50 states across two key dimensions: "state residents’ dependency" and "state government’s dependency." (Shutterstock)

MINNESOTA — Minnesota is among the least-reliant states when it comes to needing money from the federal government. The Land of 10,000 Lakes is 38th on WalletHub's ranking of state neediness.

Minnesota is sandwiched between Texas (No. 37) and Virginia (No. 39).

Overall, "red" states are more reliant on federal funding than "blue" states, according to the study, though there are several exceptions.

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The study compared all 50 states across two key dimensions: "state residents’ dependency" and "state government’s dependency."

State Residents’ Dependency

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  • Return on Taxes Paid to the Federal Government: Triple Weight (~37.50 Points)
  • Share of Federal Jobs: Full Weight (~12.50 Points)

State Government’s Dependency

  • Federal Funding as a Share of State Revenue: Full Weight (~50.00 Points)

Data used in the study came from the Internal Revenue Service, U.S. Census Bureau, USAspending.gov, and the Bureau of Labor Statistics.

States most dependent on money from the federal government:

  1. Alaska
  2. Mississippi
  3. Kentucky
  4. West Virginia
  5. Montana
  6. New Mexico
  7. Arizona
  8. Louisiana
  9. Indiana
  10. Alabama

States least dependent on money from the federal government:

  • California (41)
  • Colorado (42)
  • Massachusetts (43)
  • Iowa (44)
  • Illinois (45)
  • Washington (46)
  • Utah (47)
  • Kansa (48)
  • New Jersey (49)
  • Delaware (50)

Read the entire study here.


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