States Most Dependent On Government

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Jasmine Laws

By Jasmine Laws

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Wyoming is the state most dependent on federal government funding and will likely be the one most impacted by President Donald Trump's order to freeze hundreds of billions of dollars in federal grants and loans.

The president's order was, however, temporarily blocked by a federal judge, just minutes before the freeze was set to come into effect on Tuesday.

Newsweek has contacted the White House out of hours via email for comment, as well as Wyoming Governor Mark Gordon.

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Why It Matters

Freezing federal funding can delay or halt the operation of various government programs and services. Many federal agencies rely on this funding for day-to-day activities, including services like Social Security, defense, education and health care.

A funding freeze could create uncertainty and lead to slowdowns or disruptions in essential services for citizens.

What To Know

Wyoming, Louisiana, South Dakota and Alaska are the states most reliant on federal government funding, with all of them having 50 percent or more of state revenue provided by the government.

The states that are least dependent on government funding include Hawaii, Utah and Kansas, all of which had less than 28 percent of their state revenue provided by the federal government.

Wyoming, Louisiana, South Dakota and Alaska all voted for Trump in the November 2024 election, as did Utah and Kansas. However, Hawaii voted for former Vice President Kamala Harris.

Federal aid is distributed to states for services like transportation, public education, Medicaid, community development and other programs vital to residents, according to World Population Review.

Per the outlet, states that receive more federal aid tend to have poorer populations, lower tax revenues and greater enrollment for programs like Medicaid, while states with higher-income residents tend to receive less federal aid.

While California receives the highest total amount of federal funding at $43.61 billion, it only receives net federal funding of $12 per resident, according to World Population Review.

In comparison, Virginia has the highest net federal funding per resident at $10,301, meaning the state receives a disproportionately high level of federal aid despite being one of the country's wealthier states, which could be because of its large defense contracting sectors.

Before the pause called by the federal judge, the White House was planning to freeze federal grants and loans while the Trump administration reviewed government spending to ensure it followed the new executive orders.

Federal agencies were instructed to assess their financial aid programs to determine which ones might be impacted. Medicare and Social Security benefits would not be affected.

Trump's executive orders target changes to policies related to transgender rights, environmental justice, and diversity, equity and inclusion (DEI).

What People Are Saying

Democrat Representative for Texas Jasmine Crockett wrote in a post on X on Tuesday: "We've got six days to show Dictator Donald we're not about to let him steal the funds for the programs WE pay for so he can give tax cuts to his billionaire friends."

Democratic Georgia Senator Raphael Warnock wrote in a post on X on Tuesday: "This latest move by the Trump administration may impact everything from veteran programs to Medicaid to disaster relief. This isn't just chaotic, it's hurting Georgia families.

"The Trump administration must rescind this federal grant freeze *now*."

Democratic New Jersey Senator Andy Kim's office wrote in a post on X on Tuesday: "The announced freeze on federal funding is a thoughtless and illegal decision made by a Trump administration that doesn't know or care about the impact it has.

"Families across New Jersey will struggle to pay their bills, and seniors will go hungry. The American people are simply collateral damage."

President Trump said in a conference in Las Vegas on January 25: "And this week alone, I took nearly 350 executive actions to reverse the horrible failures and betrayals that we inherited from a group of people that didn't know what the hell they were doing. What they've done to the—what they've done to this country, especially the open borders, where they have—think of it—21 million people came in. Many of them are criminals, murderers.

"Our message could not be clearer: America's decline is over. American decline is over."

What Happens Next

Judge Loren AliKhan's order to pause the president's planned federal freeze came in response to a lawsuit filed in the day by a group of organizations that claimed the plan violated the law, the BBC reported.

Per the outlet, the pause remains in place until next Monday at 5 p.m. Eastern Time (ET).

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