New Jersey gives Washington far more than it gets in return.
According to a WalletHub study, the Garden State ranks as the least federally dependent state in the country.
The report, first published in March, looked at how much each state relies on federal funding using three key metrics: how much the federal government spends in that state for every tax dollar it collects; how much of the state’s budget relies on federal assistance; and how many federal employees work there.
New Jersey ranked near the bottom in every category: 49th in return on taxes; 44th in funding share; and 46th in federal jobs.
It placed dead last overall in federal dependency.
New Jersey is a donor state
New Jersey’s status as a top donor state is backed by federal data. According to USAFacts, New Jersey sent about $183 billion to Washington, D.C. in taxes in 2023 but received only around $113 billion in federal spending.
That means each New Jersey resident effectively gives the federal government about $7,500 more than they get back in services, funding, or investments.
That $70 billion surplus instead goes to poorer states — the ones that get more from the federal government than what they give.
Every year, residents and businesses in New Jersey pay billions in federal income, payroll, and corporate taxes. That money goes into a national pool, which is then redistributed across the country in the form of Social Security, Medicare, disaster relief, highway funding, public housing, education grants, defense contracts, and more.
For every $1 New Jersey sends to Washington, it gets back just 48 cents.
In real terms, New Jersey taxpayers help bankroll highways, hospitals, and infrastructure in other states, and may wait longer for federal help with in-state needs.
For comparison, the most federally dependent states include Kentucky, West Virginia, Mississippi, and Alaska — states that consistently receive far more than they contribute.
Kentucky, for example, gets back $3.35 for every federal tax dollar paid, according to WalletHub.
Neighboring states show a mixed picture.
Delaware and New York are also donor states, though with smaller gaps. Pennsylvania, by contrast, lands closer to the middle, ranking 20 in overall dependency.
Jerry Haught is a Jersey Shore-based journalist with the Mid-Atlantic Connect Team.
This article originally appeared on NorthJersey.com: NJ least dependent on federal money; what that means and why
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