NJ Is 2025’s Least Federally Dependent State, Study Says

NEW JERSEY — A new study has revealed that New Jersey is the U.S. state that is least dependent on federal dollars that fund a range of things, including education, transportation, infrastructure and health care.

To find out which relied most on federal aid, finance website WalletHub compared all 50 states in terms of three key metrics: the return on taxes paid to the federal government, the share of federal jobs and federal funding as a share of state revenue.

The analysis revealed that some states receive much larger aid packages than others.

“Regardless of whether the distribution of federal funds is fair or not, living in one of the most federally dependent states can be beneficial for residents," WalletHub analyst Chip Lupo said in a statement. "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.”

Additionally, New Jersey's government and residents are among the least dependent on federal dollars. Garden State residents came in at No. 49 in a dependency rank, while the state government ranked No. 44.

These are the 10 states that rely most on federal aid, according to the analysis:

1. Alaska
2. Kentucky
3. West Virginia
4. Mississippi
5. South Carolina
6. New Mexico
7. Louisiana
8. Arizona
9. Indiana
10. Alabama

These 10 states are the least dependent on federal dollars:

1. New Jersey
2. California
3. Delaware
4. Massachusetts
5. Utah
6. Kansas
7. Washington
8. Illinois
9. Colorado
10. Iowa

See the full analysis at WalletHub.com.