Federal Grants to States Up Since 2008

Source: Pew Charitable Trusts, May 22, 2014

Federal grants to states are about 18 percent higher overall, after adjusting for inflation, than they were in federal fiscal year 2008, when the recession began. Federal stimulus aid to states resulted in a temporary spike during and immediately after the recession. That aid has been almost entirely phased out, but total grants to states remain above prerecession levels. Medicaid increases are the main driver of this upward trend, while funding for other programs such as education and transportation is declining.