YEP. LEFTY POLITICS LIVES ON A STANDING WAVE OF OTHER PEOPLE’S ILL-OBTAINED MONEY. Democratic States Are Wards of Washington: There’s a reason for the panic over the Trump White House’s temporary federal spending pause.
Democratic states and their economies depend much more on Washington largesse than Republican states do. This year, New York received roughly $4,900 per capita from the feds and California $4,300—two to three times as much as Florida ($1,700) and Texas ($1,500). That’s because Democratic states provide more generous social welfare, which is increasingly funded by Washington thanks to regulatory changes by the Biden administration.
Democratic states also received a disproportionate share of the more than $1 trillion that Congress sent to state and local governments in 2020 and 2021 as pandemic relief. Between 2018 and 2022, federal dollars flowing to state and local governments increased by about $515 billion, more than the rise in Social Security and Medicare combined.
Most Covid funds are running out, though the Biden Federal Emergency Management Agency planned to hand out disaster-relief funds to states and cities for pandemic “emergency” spending through August 2026. This year’s Los Angeles city budget includes $208.2 million in FEMA Covid funds, including for housing vagrants in hotels. New York state’s budget this year includes nearly $3.5 billion in FEMA dollars for Covid “emergency protective measures” such as home test kits.
After blowing through federal pandemic largesse, states and localities are tapping FEMA to backfill their budgets. Congress, in turn, keeps backfilling FEMA. Rinse and repeat.
The Government Accountability Office last summer projected that the Covid “disaster” will be the most expensive in FEMA history. President Trump is right to call for shifting more FEMA responsibilities to states. Federal spending on disaster relief creates a moral hazard by reducing the incentive for states to invest in disaster preparation and mitigation.
The same goes for social welfare. States have less incentive to help lift people out of poverty since they receive more federal dollars if people stay poor. When you’re spending someone else’s cash, there’s hardly an incentive to spend it prudently. Medicaid, states’ biggest source of federal dollars, encourages inefficient spending.
States receive $1 to $3 from Washington for every dollar they spend on Medicaid—and $9 for lower-income able-bodied individuals covered under the ObamaCare expansion. Democratic states provide more-expansive benefits and easier eligibility to wring more money out of Washington. Some 36% of Californians are covered by Medicaid, compared with 19% of Floridians and 15% of Texans. The federal share of the Golden State’s Medicaid spending—nearly $120 billion—is more than Florida’s entire budget.
America’s welfare queen is New York. Federal dollars make up roughly 40% of the state’s budget.
Stop subsidizing them.
