Chart of the day: Which states rely most on federal dollars?

by Suzy Khimm, Washington Post

The debt-ceiling deal promises that major federal spending cuts are coming, whether or not the congressional “supercommittee” comes up with a deal. Big federal cuts will invariably squeeze the states, which rely on federal funds for roughly a third of their spending. And states that rely most heavily on federal funding could be hit hardest by the Budget Control Act.

This chart shows how much each state receives in federal expenditures per capita, the U.S. Census Bureau’s Consolidated Federal Funds Report. To be sure, some major sources of funding below would be spared: Even if the supercommittee reaches a deadlock, triggering automatic across-the-board cuts, Social Security, Medicaid and other low-income entitlements will be spared. Even so, this graphic paints a rough portrait of which states could be hardest hit by broad-based federal cuts.

The states most dependent on federal spending could also see their credit ratings fall in the wake of a major deficit reduction deal if they fail to adapt accordingly.

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