How much total federal funding did California receive in 2025 and how does it compare to 2024?
Executive summary
California’s enacted 2025–26 state budget incorporates almost $175 billion in federal funds that flow through the state budget—about 35.2 percent of the total plan—according to the California Budget & Policy Center (CalBudgetCenter) [1]. State-level budget analysts at the Legislative Analyst’s Office (LAO) had projected federal funds would be broadly flat between 2024–25 and 2025–26 as of mid‑2024, but program-level changes — most notably an $11.1 billion increase in federal Medi‑Cal spending — mean the picture is mixed: aggregate federal inflows are roughly unchanged year‑over‑year while particular programs saw meaningful increases [2] [3] [1].
1. What the headline number actually measures
The “almost $175 billion” figure cited by the CalBudgetCenter refers specifically to federal funds that pass through California’s state budget in the enacted 2025–26 spending plan, not every dollar of federal activity in the state (grants to local governments, direct federal payments to residents, or defense contracting may be counted differently) [1]. Presenting this as the state’s total federal funding is accurate for the state budget channel but can under‑ or overstate other measures of federal activity depending on methodology; other data compilations use different definitions and yield different dollar totals [1].
2. Year‑to‑year comparison: aggregate federal flows roughly flat
As of June 2024 the LAO reported that federal funds were expected to be essentially flat between 2024–25 and 2025–26 — a projection that aligns with the budget act’s final accounting showing the state’s enacted 2025–26 budget relying on about the same aggregate federal‑fund level that California used in 2024–25 [2]. The CalBudgetCenter’s summary of the enacted 2025–26 plan — which documents the almost $175 billion of federal funds — therefore should be read as consistent with the LAO’s expectation of little net change in total federal funds flowing through the state budget from the prior year [1] [2].
3. Important program‑level shifts under the headline
Despite the flat aggregate, there are notable programmatic swings: Medi‑Cal total spending is projected at $197 billion in 2025–26, up $17.7 billion from the revised 2024–25 level, driven in part by an $11.1 billion increase in federal spending for Medi‑Cal specifically [3]. That means even if total federal flows to the state budget held steady, the composition shifted toward larger federal support for health care, placing greater federal share pressure on Medi‑Cal while other line items may have been reduced, delayed, or restructured [3] [1].
4. Why different sources give different impressions
Public reporting can diverge because sources measure different things: the CalBudgetCenter focuses on federal dollars flowing through the state budget and reports the roughly $175 billion figure and its share of the total budget [1]; national compilations such as NASBO report total state expenditures but don’t always break out federal components in the same way [4]; other outlets quoting “federal aid” or “federal funding” may be using formula grant totals, direct federal payments, or single‑year snapshots that yield much smaller (e.g., ~$43.6 billion) or larger figures depending on scope and year [5] [4]. Readers should therefore match definitions to the question: “federal funds in the state budget” versus “total federal dollars touching California” [1] [5].
5. Timing, politics, and caveats that matter
Two timing and political caveats matter: the LAO’s June 2024 projection noted some federal policy uncertainties (e.g., potential impacts from congressional actions), and the CalBudgetCenter highlights that subsequent federal legislation (H.R.1 as described by the Center) could materially change funding flows after enactment [2] [1]. Finally, differing institutional agendas shape emphasis — CalBudgetCenter emphasizes program impacts and potential federal cuts, while LAO focuses on technical budget projections — so synthesis of both is required for an accurate year‑over‑year assessment [1] [2].