Report Finds Wisconsin Ranks Toward the Bottom in Terms of Receiving Federal Payments

Friday, June 13th, 2025 -- 11:01 AM

(Danielle Kaeding, Wisconsin Public Radio) As sweeping federal cuts loom, a new report from the Wisconsin Policy Forum finds Wisconsin ranks near the bottom of states in terms of receiving federal payments.

According to Danielle Kaeding with the Wisconsin Public Radio, even so, researchers note federal spending reductions would have widespread effects, including for the state’s most vulnerable residents.

The report is based on a review of federal taxes and spending that’s conducted each year by the Rockefeller Institute of Government in New York. Jason Stein, the forum’s president, said he and other researchers found Wisconsin ranks 41st in the nation for the amount the federal government spends on average for each Wisconsin resident.

In federal fiscal year 2022, Wisconsin received $86.46 billion in federal payments or roughly $14,700 per person, lagging behind the national average of $16,606 per person.

“Despite this fact that most states get substantially more than we do, the federal role here is hugely important,” Stein said. “What happens with it, even in Wisconsin, is still a really big deal.”

Federal spending was about $15 billion more than what Wisconsin residents and businesses paid in federal taxes in 2022. Federal payments also exceeded combined state and local government spending of $65 billion.

Entitlement programs like Social Security and Medicare received the most in direct federal payments, amounting to $56 billion. Other payments include unemployment insurance benefits, federal grants and loans for college students, pension benefits for veterans and food benefits for the Supplemental Nutrition Assistance Program.

Medicare and Social Security programs each serve more than 1 million residents. While they’re not facing cuts, the report notes Social Security provided around $29 billion annually in payments in 2023, or an average of roughly $1,800 a month for each individual receiving benefits.

Even a 1 percent change in spending could result in the loss of roughly $300 million each year. However, Medicaid could see significant cuts or changes under a U.S. House budget proposal or the House reconciliation bill.

Wisconsin received around $14 billion in federal grants paid to states, local governments and schools that support programs like Medicaid. It serves almost 1.3 million children and adults.

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