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Last year, Indiana was the beneficiary of over $177 billion in federal support, according to an Indiana Fiscal Policy Institute analysis released Monday.
It was spent on everything from entitlement programs such as Medicare and Social Security to sectors including defense, agriculture and education.
However, that amount could drastically change as President Donald Trump’s budgetary agenda takes shape. His administration, with the support of Congress, is pushing for $1.5 trillion in savings by improving efficiency and cutting spending.
The state’s dependence on federal revenue is higher than the national average of 36.4%, according to a Pew Charitable Trusts analysis. Federal contributions account for around 40% of Indiana’s total revenue.
Gov. Mike Braun and Legislative leaders previously told IBJ they don’t think a special session this year would be necessary to remedy federal budget cuts. Observers have warned that federal Medicaid cuts, especially, could necessitate the state reopening the budget to pay the bill.
State lawmakers aim to adjourn the Legislative session this week, depending on whether they finish crafting the two-year state budget following a $2 billion drop in estimated state revenue. The state budget does not include federal funds.
The largest federal contributor is the U.S. Department of Health Services, which sends $126.5 billion to Indiana for programs like Medicaid and Medicare.
Several national outlets reported last week that the Trump administration is seeking to slash federal health spending by one-third. And Medicaid, one of the largest state and federal expenses, could be impacted by $880 billion in cost-cutting through 2034.
After health care, Social Security is the second-largest pot, with $32.5 billion in federal funds spent on Hoosiers. Several federal agencies—including defense, agriculture, veterans affairs, transportation and education—also spend several billion in the state on projects, programs and contracts.
Some of the areas that receive the most federal support are central Indiana—including Marion, Hamilton, Hendricks and Johnson counties—Evansville and northwest Indiana.
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MAGAs are all about everything being pushed down to the state level…
…and not aware (or comprehending) that the state has for years depended on federal aid to provide basic services and support for a large percentage of its citizens.
Don’t worry, the state just pushes everything down to the local level and makes it their problem.
Social Security does not belong in this article . It is not a general tax revenue expense item . It is totally funded separately by the FICA payroll tax funded Social Security trust fund .
The “trust fund” is not a real thing.
https://www.cato.org/policy-analysis/social-security-trust-fund-myth