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October 12, 2023
Blue States Are Getting More Federal Money Than They Should
The late New York senator Daniel Patrick Moynihan long complained — and commissioned data — about New York’s status as a “donor state,” for sending more in tax dollars to Washington than it received in return in the form of grants. This was always a misunderstanding of the virtues of the U.S. being a vast free-trade…
October 12, 2023
Blue-State Benefits: How Federal Grants Fail to Consider Population Shift
Abstract The federal government annually awards hundreds of billions of dollars in grants to states. In this report, I examine funding for the largest federal grant programs for 2020–22, focusing on grants-in-aid that do not fully adjust for population change. For states losing population, I calculate “avoided reductions,” the difference between the grants a state…
