New York returned to a negative balance of payments with the federal government in federal fiscal year 2024, marking a shift from the years of increased federal aid during the COVID-19 pandemic.
According to a report from state Comptroller Thomas P. DiNapoli, New York generated $353.5 billion in federal taxes and received $341.1 billion in federal spending, resulting in a negative $12.4 billion balance.
The figures mean New York received 97 cents in federal spending for every $1 it contributed in federal taxes, ranking 45th among states.
“The state is once again sending more money to Washington than it gets back,” said DiNapoli. “With the impact of the federal pandemic aid largely gone, New York returns to the familiar position of being in the red. With damaging policies being implemented by the federal government, New York could have a disproportionate reduction in federal funding which will only worsen the state’s balance of payments in future years.”
The change comes after New York recorded positive balances during the pandemic, when significant federal aid increased spending across the country. In fiscal year 2024, New York was one of 10 states with a negative balance.
Nationally, residents received an average of $16,999 in federal expenditures and paid $14,008 in federal taxes, producing a positive balance of $2,991 per person.
New York remained among the states contributing the most in federal taxes. It generated $17,674 per resident, ranking third nationally, while federal spending totaled $17,056 per resident, ranking 25th.
Federal funding continues to play a significant role in New York’s health and social service programs. The state received $60.8 billion in Medicaid funding, or $3,040 per resident, ranking third nationally. New York also ranked first in per-capita rental assistance, public housing and Temporary Assistance for Needy Families funding.
The state ranked highly in several other categories, including homeless assistance grants, SNAP, child and family services, transit grants and Pell Grants.
At the same time, New York ranked lower in federal spending on highways, procurement, veterans’ benefits and programs associated with the federal workforce.
The report provides a snapshot of how federal taxes and spending affected New York in fiscal year 2024 as pandemic-era funding largely ended.
