States receiving the most federal funds
The federal procurement process has received a fair amount of press recently, thanks in part due to the United State's strained relationship with Chinese telecommunications firm Huawei. The White House on June 12 told Congress that it will meet its two-year deadline to close and ban all federal contracts with Huawei. This is a reversal of the Office of Management and Budget's assertion that more time would be needed to coordinate with third-party contractors and suppliers.
The White House has accused Huawei—the world's largest producer of telecommunications network equipment—of espionage and theft of intellectual property. The ban was introduced in last year's National Defense Authorization Act; in response, Huawei denied the charges and filed a lawsuit to block the ban. Complicating the ban implementation is the fact that—as the largest manufacturer of telecom equipment—Huawei equipment was typically the cheapest available option, or in many cases, the only option on the market. This has resulted in much of the nation's rural cellular and telecom coverage being supported with Huawei equipment.
The federal procurement process for the 50 states and the District of Columbia is a $3.2 trillion business. More than half of this is funding for social services like Medicare and Medicaid payments, federal hospital insurance, educational funding, and obligatory payments under spending bills such as the Affordable Care Act. Federal procurement also goes to non-government contractors to provide infrastructure support, back research efforts, build equipment and commodities, and offer needed services.
While the federal procurement process is often controversial and politicized, it's also a significant part of the nation's gross domestic product. Understanding how the federal government spends this money is a key part of understanding its priorities and motivations.
Stacker has looked at data provided by the federal government's USA Spending website to determine which state has the most federal procurement spending per capita. The data is accurate as of June 7, 2019; for this list, we will be focusing solely on the 2018 calendar year. Keep reading to learn which state has the most procurements and see where your state sits on the list.
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- Federal contracts per capita: $5,078
- Federal contracts in last 12 months: $15.7 billion (0.5% of contracts to all states)
Being mostly desert, the state of Utah is large and significantly empty, especially in the southern half. Approximately half of all the money that goes to the state comes in the form of Social Security benefits, medical assistance, and veterans' compensation—which is one of the lowest percentages in the nation. The largest private contractor in the state receiving federal money is L3 Technologies, an aerospace contractor that builds airport screening equipment, explosive detection systems, aviation trainers, holographic weapon sights, and imaging systems.
- Federal contracts per capita: $6,151
- Federal contracts in last 12 months: $64.1 billion (2.02% of contracts to all states)
Georgia is primarily a rural state that's punctuated by its major cities. Like Utah, more than half of all federally awarded monies to the state go to social programs, such as Social Security, Medicare, Medicaid, community health programs, the state's Department of Education, and veterans' compensation. The largest private contractor in the state is Lockheed Martin, which focuses on aviation, avionics, and security systems.
- Federal contracts per capita: $6,243
- Federal contracts in last 12 months: $18.2 billion (0.57% of contracts to all states)
Kansas had more than half of its federally received money go to social programs, including Medicaid, Medicare, Social Security, and veterans' compensation. But $362 million (approximately 2%) of the state's 2018 received funds went to Cerner Government Services, which provides solutions to convert paper processes to digital formats in the health care industry.
- Federal contracts per capita: $6,528
- Federal contracts in last 12 months: $83.4 billion (2.63% of contracts to all states)
Illinois received 791,615 prime awards (agreements between the U.S. government and non-federal entities to carry out federal programs) in 2018, at an average award amount of $105,480.57. Due to the state's high population, more than 55% of all federal awards went to social services. The top grants to private or commercial entities went to UChicago Argonne—which manages the Argonne National Laboratory and develops commercial opportunities for the University of Chicago—and the Fermi Research Alliance. Northrop Grumman and BP Products North America were also top grant recipients.
- Federal contracts per capita: $6,668
- Federal contracts in last 12 months: $20 billion (0.63% of contracts to all states)
A sparsely populated desert state, much of Nevada consists of federally owned land. Like Illinois, more than 61% of the state's federal awards go to social programs. Electronics systems integrator Sierra Nevada Corporation, Mission Support and Test Services, and JT4 are top grant recipients in the state.
#46. North Carolina
- Federal contracts per capita: $6,829
- Federal contracts in last 12 months: $70.1 billion (2.21% of contracts to all states)
North Carolina is increasingly emerging as a research-driven state, with significant growth in the Piedmont region. Top private grant recipients include H-Squared, McKesson Corporation, and Brasfield & Gorrie. However, more than 64% of all federal funding in 2018 was used toward social programs.
- Federal contracts per capita: $6,890
- Federal contracts in last 12 months: $194.6 billion (6.13% of contracts to all states)
At $193.3 billion received in 2018, only California and Pennsylvania received more from the federal government than Texas. The state's low ranking is misleading, due to the state having the second-highest population in the nation. With about 50% of funding going to social services, the top private recipient is Lockheed Martin.
#44. New Jersey
- Federal contracts per capita: $6,949
- Federal contracts in last 12 months: $62.3 billion (1.96% of contracts to all states)
New Jersey is a highly populous state that exists almost entirely on the I-95 corridor from Boston to Washington D.C. About 65% of its federally received monies went to social service providers; funds that were not awarded to state government or individual recipients include $1.43 billion to Lockheed Martin and $593.66 million to the Harris Corporation.
- Federal contracts per capita: $7,156
- Federal contracts in last 12 months: $83.2 billion (2.62% of contracts to all states)
Similar to its neighbor Pennsylvania, Ohio is a former industrial state that is struggling to redefine itself during the current deindustrialization of the nation—in turn, the state has 64% of its federal payments going to social services. The largest private recipients are General Electric, Fluor-Bwxt Portsmouth, and CFM International.
- Federal contracts per capita: $7,288
- Federal contracts in last 12 months: $22.9 billion (0.72% of contracts to all states)
Iowa is a breadbasket state that is slowly working to diversify its industrial base. Among the commercial enterprises the state has supported in 2018 were aerospace firm Rockwell Collins, information management equipment manufacturer Data Link Solutions, and military ammunition provider American Ordinance.2018 All rights reserved.