Report: Federal Funds Prop Up New York’s Balances
New York is getting more bang for its buck from Washington, D.C., according to a new report, which says an influx of federal pandemic aid has helped the state keep a positive balance of payments for the second year in a row.
The report, issued by state Comptroller Thomas DiNapoli, found that for every dollar New York generated in federal tax receipts in 2021, the state received $1.51 back in federal spending.
That’s slightly lower than the national average of $1.70, but marks the second consecutive year the Empire State has gotten more than it gives to the federal government.
“New York’s per capita ranking jumped because of pandemic funding for fiscal recovery, economic support, Medicaid and vaccine manufacturing contracts,” DiNapoli said in a statement on the report. “This significant improvement reflects short-term measures, however, not enduring policy changes.”
Dinapoli’s report looked at all 50 states to compare how they pay in federal taxes and how much they receive in federal spending. For the second year in a row, all states had a positive balance of payments amid an influx of federal relief aid, he said.
In 2021, New York’s per capita contribution to the federal treasury was $14,753, the third highest in the nation, according to the report.
Connecticut had the highest per capita contribution to the federal treasury at $16,916, followed by Massachusetts with $16,314. Mississippi generated the lowest per capita total tax payments at $6,575. New York’s total payments of $293 billion ranked third among the states behind California and Texas, DiNapoli said.
New Yorkers’ payments of $87.3 billion were 6.7% of the total federal receipts from social insurance taxes. New York’s per capita contribution for such payments, $4,403, was 11.9% above the national average of $3,935, ranking it 10th among all states.
New York received $22,208 in federal spending per capita in 2021, above the national average of $19,524 by almost $2,700, DiNapoli’s report noted.
The combination of federal tax payments and expenditures resulted in a $7,455 per capita surplus for the Empire State, for a national ranking of 30th most favorable, the report noted.
Overall, New York received 6.8% of total federal spending examined in fiscal 2021, up from 6.4% in the prior year, according to the report.
The federal spending included $2,587 per capita for unemployment compensation; $998 per capita through State and Local Fiscal Recovery Funds; $393 per capita in student loan costs from payment waivers, DiNapoli said.
Federal spending on Medicaid in New York was close to $47.1 billion or $2,373 per capita, more than one-and-a-half times the national average of $1,559, ranking it third among the states.
DiNapoli’s report cautioned that as federal pandemic aid winds down, “the underlying trends are likely to return, with New York reverting to getting far less from Washington than it sends.”



