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Fact check: Which states contribute more federal taxes than they receive back in spending?

Checked on June 11, 2025

1. Summary of the results

The number of "donor states" (those contributing more than they receive) has fluctuated significantly in recent years:

  • In 2019, there were 8 donor states, with New York being the largest contributor at $22.8 billion excess [1]
  • By 2023, this number increased to 19 donor states, with:
  • New York ($89 billion)
  • California ($78 billion)
  • New Jersey ($70 billion) leading in total contributions [2]
  • On a per-person basis, the highest contributors were:
  • Delaware ($10,505)
  • Minnesota ($7,605)
  • New Jersey ($7,456) [2]

2. Missing context/alternative viewpoints

Several important contextual factors should be considered:

  • The COVID-19 pandemic significantly altered the traditional donor-recipient dynamic [1]
  • By 2024, the situation had changed dramatically, with both red and blue states receiving more than they contributed, though red states received more ($1.24 vs $1.14 per dollar) [3]
  • The primary reason for some states being donors is their higher concentration of high-income earners who pay more federal taxes [1]

3. Potential misinformation/bias in the original statement

The question itself might suggest a simple donor-recipient relationship, but several political and economic factors are at play:

  • There's a clear political dimension, with traditionally Democratic-leaning states typically being net contributors [3]
  • The Associated Press has confirmed that high-tax, Democratic states effectively subsidize low-tax, Republican states [4]
  • The numbers can fluctuate significantly based on national events (like COVID-19) and economic conditions, making any single-year analysis potentially misleading [3]
  • States like Connecticut, Massachusetts, New Jersey, and New York have shown consistent patterns of being donor states over time, suggesting this is a structural rather than temporary phenomenon [4]
Want to dive deeper?
What is the difference between donor states and recipient states in federal funding?
How has the balance of federal taxes paid versus spending received changed over time by state?
Which factors determine how much federal spending a state receives compared to taxes paid?
Do red states or blue states typically receive more federal funding than they contribute?
What role do military bases and federal facilities play in state-by-state federal spending distribution?