North Carolina’s Federal Dependency Examined in Recent Study
AI-generated context summary requested by a Free News Reader user. Sourced via Gemini from publicly available information — no paywalled content was accessed.
You hit a paywall. Here’s the context on this topic based on publicly available information. We did not access any paywalled content. View original article.
North Carolina's Federal Dependency Examined in Recent Study
- North Carolina ranked 37th in a 2026 WalletHub study assessing state reliance on the federal government, indicating a moderate level of federal dependency.
- The WalletHub report, released on March 8, 2026, evaluated states based on metrics including return on taxes paid to the federal government and federal funding as a share of state revenue.
Full Summary — powered by AI
A recent WalletHub study, published on March 8, 2026, analyzed the extent to which U.S. states depend on the federal government, with North Carolina ranking 37th overall. The analysis considered two main dimensions: residents’ dependency and the state government’s dependency. These dimensions were further broken down by metrics such as the return on taxes paid to the federal government, federal funding as a share of state revenue, and the share of federal jobs within a state.
In fiscal year 2023, federal transfers constituted 25.1% of North Carolina’s government revenues, a figure similar to the national average. The federal government provided North Carolina with $32.8 billion in fiscal year 2023, which includes funds directed to both the state government and local entities. A significant portion of these transfers, 54% in fiscal year 2023, was allocated to public welfare support, encompassing programs like Temporary Assistance for Needy Families (TANF) and Medicaid.
WalletHub’s 2026 report identified Alaska, Kentucky, and West Virginia as the most federally dependent states. Conversely, New Jersey, Massachusetts, and Delaware were ranked among the least federally dependent states. The study also noted a correlation between federal dependency and per-capita GDP, suggesting that less wealthy states often receive more federal support.