The Federal Government Transferred $661 Billion In Grants to State and Local Governments In 2016
While state and local revenue help fund social services and other programs, the federal government also plays a significant role in funding these programs through transfers to state and local governments. In 2016, the federal government provided $661 billion in grants to states and local governments, accounting for 25% of all state and local government spending and 11% of total government spending (Fig. 24). D.C., Alaska, Wyoming, and Vermont received the largest grants per capita.