When it comes to federal money, West Virginia receives more than it gives … a lot more.
The Rockefeller Institute of Government’s annual report looked at four major categories of federal spending: direct payments for individuals under programs such as Social Security and Medicare, federal grants to state and local governments, federal contracts and wages paid to federal workers.
The report shows that in fiscal year 2022, West Virginians generated $14 billion in individual and payroll taxes, corporate income taxes, excise and other taxes that went to Washington. But the state and our residents received $34 billion in benefits, for a balance of payments of $20 billion.
West Virginia is consistently on the plus side of the balance of payments. The Rockefeller report finds that the state has received more than it has paid for the last eight years, which is as long as the institute has been keeping tabs. And the balance has consistently risen, from $12 billion in 2015 to $20 billion in 2022.
That $20 billion ranks West Virginia 22nd among the states in balance of payments. However, West Virginia moves up in the rankings when population is considered. Our state ranks sixth in per capita distribution of federal dollars, with a balance of payments of $11,332 per person.
States like California, Massachusetts, Washington, New Jersey, New York and Connecticut are in the red on balance of payments. They send more money to the federal government than they receive in benefits.
At the opposite end, Virginia and Maryland are at the top of the list in benefits received. According to the Rockefeller Institute, that is because there are so many federal employees, government offices and government contractors in the Washington, D.C., area who live in those two states.
“Other states, such as New Mexico and Kentucky, have lower income levels, but high levels of spending due to large government military facilities or large numbers of government contractors in the region,” according to Rockefeller.
A Pew Research survey in December 2023 found that just 22% of U.S. adults have a favorable opinion of the federal government. Republicans in particular are anti-Washington, with only 11% saying they have a favorable view.
West Virginia is a deeply red state, so if most West Virginians are like the rest of the country, they share that disdain for Washington. A lot of factors probably go into those negative views.
However, when it comes to the distribution of federal dollars, West Virginians are benefiting more than most, and you don’t hear many complaints about that.
