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Index/Topics/Federal Program Formulas and State Funding

Federal Program Formulas and State Funding

The impact of federal program formulas on state funding, including Social Security, Medicare, and Medicaid, and how these formulas affect the distribution of funds to states.

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Jan 18, 2026
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How do federal program formulas (Social Security, Medicare, Medicaid) change state-by-state net flows between blue and red states?

Federal program formulas materially shape which states are net recipients or net contributors, but not in a simple red-versus-blue pattern: Social Security and Medicare mainly follow payroll-tax and b...