# Which States Rely the Most on Federal Aid?  ## Metadata - Author:: [[USAFacts]] - Full Title:: Which States Rely the Most on Federal Aid? - Category: #articles - URL: https://usafacts.org/articles/which-states-rely-the-most-on-federal-aid/?utm_source=Mailchimp&utm_medium=email&utm_content=july_24 ## Highlights >  ([View Highlight](https://read.readwise.io/read/01h6c0nxbd6f89pgb23kdmm7x4)) > Federal grants are divided into two categories: formula grants and competitive grants. ([View Highlight](https://read.readwise.io/read/01h6c0p57e4qfemgsdek60v06y)) > The federal government uses a blueprint to calculate formula grants for each state or locality. This formula typically considers factors such as population size, poverty rates, or specific needs of the area. > For example, federal Medicaid funds are distributed through formula grants based on the healthcare needs of each state. ([View Highlight](https://read.readwise.io/read/01h6c0pj3v63t2e9qff7pdap86)) > On the other hand, competitive grants require state and local governments to submit proposals or applications to the federal government. These proposals outline their plans for using the grant money effectively to achieve specific goals. The government then selects the winners based on the proposals’ merits. ([View Highlight](https://read.readwise.io/read/01h6c0pw4kb05hwjb715h89bez)) > When evaluating federal funding on a per-person basis, Washington, DC, stood out, receiving the most federal funding per person: > • Washington DC ($6,983 per person) > • Wyoming ($6,894 per person) > • Alaska ($6,495 per person) > • Vermont ($5,463 per person) > • Delaware ($4,373 per person) ([View Highlight](https://read.readwise.io/read/01h6c0rg3xr4xyjw59p2khhdsp)) > The total federal aid each state receives varies based on the number of low-income families in each state, the frequency of natural disasters, economic volatility, whether the state has recently expanded Medicaid, and more. ([View Highlight](https://read.readwise.io/read/01h6c0s2rhk3z6j29w16hh0ted))