How much federal money goes toward Minnesota state and local government?
About $21.9B in fiscal year (FY) 2022. This total includes money transferred to Minnesota’s state government as well as funds sent directly to local entities within the state, such as cities and school districts. Federal funding helps state and local governments pay for things like infrastructure, education, and health care for low-income people.
Data updated February 13, 2025
In FY 2022,
$21.9B
was the amount Minnesota governments received from the federal government
In FY 2022,
25.7%
of Minnesota governments’ revenue came from federal transfers
Federal transfers to state and local governments may be awarded through a competitive application process, or given based on formulas that consider things like the size of a population, number of highway miles, or income of an area. Sometimes the money goes directly to local governments. Other times, the federal government gives “pass-through” grants to states, which then decide how to distribute the funds to local governments within their state.
Federal transfers to Minnesota governments increased 14.9% in FY 2022.
Federal transfers to Minnesota's state and local governments, FY 2022 dollars
In FY 2022, Minnesota received a total of $21.9B from federal transfers, up 14.9% from the year before. Money sent to Minnesota governments made up 1.7% of all federal government transfers to states that year.
Subscribe to get unbiased, data-driven insights sent to your inbox weekly.
Federal transfers to state and local governments can vary for many reasons, including the characteristics of the population (e.g., age and income levels), the strength of the local economy, and policy choices made by the recipient governments. This means funding varies across states, so one useful way to measure state reliance on federal money is to look at the share of total revenues coming from the federal government.
A similar share of of Minnesota's revenues came from federal transfers than the average state in FY 2022.
Share of state and local government revenues from federal transfers
In FY 2022, 25.7% of Minnesota government revenues came from federal transfers. This was 0.9 percentage points lower than the average across all states.
Federal transfers finance a broad range of programs and services, including education, nutritional assistance programs, infrastructure, and Medicaid. Because every state has different populations and needs, the purpose of federal transfers also differs.
Public welfare support made up 51% of transfers to Minnesota governments in FY 2022.
Share of state and local government revenues from federal transfers, FY 2022
In FY 2022, 51% of transfers Minnesota governments received from the federal government were for the purpose of supporting public welfare. Public welfare includes cash assistance to individuals through programs like Temporary Assistance for Needy Families (TANF) and Medicaid payments to health care providers. Funding for health and hospital transfers was the next largest category of federal transfers Minnesota governments received at 17%.
Change location to see this data for another state.
Methodology
USAFacts standardizes data, in areas such as time and demographics, to make it easier to understand and compare.
The analysis was generated with the help of AI and reviewed by USAFacts for accuracy.
Page sources
USAFacts endeavors to share the most up-to-date information available. We sourced the data on this page directly from government agencies; however, the intervals at which agencies publish updated data vary.
Office of Management and Budget and US Department of the Treasury
Budget of the US Government and Monthly Treasury Statement
US Census Bureau
Annual Survey of State and Local Government Finances
