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- Utah ranks among the least federally dependent states, according to WalletHub.
- The study shows Utah as 46th in federal dependency, emphasizing low federal aid.
- Alaska is the most federally dependent state, with over 50% revenue from federal funds.
SALT LAKE CITY —Utah ranks in the top five least federally dependent states, according to a recently released study from WalletHub. As red states tend to be more federally dependent than blue states, Utah ranked as the least federally dependent red state in the nation.
The study ranked all 50 states' economic dependency on the federal government based on the amount in federal aid and tax returns each state received from the federal government. Utah ranked as the 46th most federally dependent state in the U.S.
WalletHub's study was based on three metrics:
- Return on taxes paid to the federal government;
- Share of federal jobs;
- Federal funding as a share of state revenue;
"Some states receive much larger aid packages than others, but it's not just the dollar amount that matters. It's important to contextualize the money flowing in by comparing it to things like what percentage of the state's revenue it makes up and how much the federal government gets back through its taxes on the state's residents," according to WalletHub.
The most federally dependent states
According to WalletHub, Alaska ranks as the most federally dependent state in the U.S., with over 50% of the state's revenue coming from federal funding. The state also has a high number of federal jobs, with about 5% of the state's workforce federally employed.
In the top three most federally dependent states, Alaska is followed by Kentucky as second and West Virginia as third.
WalletHub analyst Chip Lupo said living in more federally dependent states can be beneficial for residents.
"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," he said.
Utah's neighbor to the south, Arizona ranked as the eighth most federally dependent state. Wyoming was also high on the list, ranked 12th.
The study also showed that red states are more federally dependent than blue states. WalletHub based its designation of blue and red states on the 2024 presidential election results.
As the sixth most federally dependent state, New Mexico was the only blue state included in the top 10. The next blue state in the rankings was Maine which ranked 13th.
The least federally dependent states
WalletHub's study ranked New Jersey as the least federally dependent state, followed by fellow blue states California and Delaware.
Utah, ranked 46th, was one of three red states in the bottom 10 of the list, along with Kansas at 45th and Iowa at 41st.
The average ranking of blue states in the study was 32.05, according to WalletHub. Red states received a higher average ranking of 21.48.
Colorado, another one of Utah's neighbors, was also in the bottom 10 most federally dependent states, ranked 42nd. Other nearby states were also in the bottom half of the list, with Idaho ranked 32nd and Nevada ranked 36th.
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Caitlin Keith
