Which blue states receive the most federal funds per capita?

Checked on January 19, 2026
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Executive summary

Virginia emerges as the standout “blue” state that receives the most federal funds per capita (highest net federal funding per resident at $10,301), while many high-profile blue states such as California, New York and Massachusetts are net contributors to the federal treasury despite large gross federal outlays in absolute dollars (California receives the most total federal funding but only about $12 net per resident) [1] [2]. The headlines about “blue states bailing out red states” rest on different measures — gross federal inflows, outflows and net balances — so the answer depends on whether the metric is total federal spending per person or net federal receipts after federal taxes are counted [3] [4].

1. What “receive the most per capita” actually means

“Receive the most federal funds per capita” can be read two ways: gross federal outlays per resident (how much the federal government spends in a state per person) or net federal funding per resident (federal outlays minus federal taxes contributed by that state’s residents); the data show different blue-state winners under each definition, and much of the recent debate conflates the two measures [2] [1] [3].

2. Virginia: the blue-state outlier getting the biggest net return

By the net-funding metric, Virginia is singled out as receiving the most federal funding per resident among states, with a net federal funding figure reported at $10,301 per resident — a reflection of heavy federal wage, procurement and program spending concentrated near Washington, D.C. [1] [5]. The Rockefeller Institute also documents that states near the District of Columbia have disproportionately high federal spending per capita because of federal wages and procurement, reinforcing Virginia’s special position [2].

3. Big blue states get big gross dollars — but not necessarily big net per-person benefits

California receives the highest total federal funding in raw dollars ($43.61 billion) but, when measured per person after taxes, its net funding is small (about $12 per resident), illustrating how large economies can be big in gross flows yet net contributors to the Treasury [1]. Rockefeller’s analysis and coverage in Time also show blue states as a bloc receive larger total federal contributions per capita than red states on some measures, but they also pay more back in federal taxes, leaving many blue states with negative net balances [2] [3].

4. Many prominent blue states are net donors, not takers

Analysts from MoneyGeek and reporting from Axios and Rockefeller find that wealthy, Democratic-leaning states often contribute more in federal taxes than they receive back: New York, Massachusetts and others show low or negative balance-of-payments per capita — meaning they are net suppliers of federal revenue rather than net recipients [4] [6] [2]. This is the core of the “blue states bail out red states” argument, which depends on emphasizing net balances rather than gross outlays [3].

5. Caveats, accounting choices and political spin

Different outlets emphasize different slices of the ledger: gross outlays (wages, procurement, Medicaid, Social Security), federal receipts (income and payroll taxes), or program-specific formulas (Medicaid matching, TANF block grants), and these choices shift which states “receive the most” per capita [2] [1] [7]. Some commentators and think tanks use fixed grants or pandemic-era relief to make political points; others focus on long-run program flows — readers should match the metric to the claim being made [3] [7].

6. Bottom line: who are the blue-state beneficiaries per person?

Using the net-federal-funding-per-resident measure reported in state rankings, Virginia stands out among blue states for receiving the most federal funds per capita, driven by proximity to federal activity [1] [2]. By contrast, many large, Democratic-leaning states — California, New York, Massachusetts — receive large gross federal dollars but are net contributors once federal taxes are considered [1] [2] [6]. The policy and political takeaways differ depending on whether the focus is gross federal spending per person or the net fiscal balance after taxes.

Want to dive deeper?
Which states have the highest gross federal outlays per capita and how do those rankings differ from net balances?
How do federal programs (Medicaid, Social Security, federal wages/procurement) individually affect per-capita federal spending in blue states?
What methodological choices do analysts use when calculating state-level 'net federal funding' and how do those choices change the results?