Where do your federal tax dollars go? Billions go to other states, report says

On a per person basis, New Jersey’s deficit with the federal government is the largest among the 50 states

The U.S. Capitol. (Photo: Joey Fox for the New Jersey Globe).

WASHINGTON — New Jersey taxpayers sent $29.1 billion more to the federal government than they got back in expenditures, more than any other state than California, according to a study released Tuesday.

That meant a deficit of $3,057 per person in the Garden State, the highest in the nation.

The story was told in the latest report from New York state Comptroller Thomas DiNapoli, who analyzed the balance of payments of the 50 states. 

Overall, 40 states received more money than they sent to Washington while the other 10 paid more. California’s overall deficit was $38.9 billion. It ranked 47th with a per person deficit of $988.

The report was issued as President Donald Trump tried to stop funding the Gateway Tunnel project under the Hudson River and overruled the Federal Emergency Management Agency, refusing to send aid to help the state recover from last winter’s massive snowstorm.

“New Jersey taxpayers send billions more to Washington than we receive back in federal funding,” Gov. Mikie Sherrill said. “That makes it all the more outrageous that Trump continues to slash funding that New Jersey families rely on, deny us needed disaster aid purely because of politics, and drive up prices on New Jerseyans every day through his reckless war in Iran.”

While every state, including New Jersey, was in positive territory during the pandemic because the federal government spent billions of dollars to avoid a recession, that money is running out and once again New Jersey and nine other states, including California and New York, are subsidizing others. The report released Tuesday covers the 12-month federal fiscal year that ended Sept. 30, 2024.

“Once again, the proof is in: Jersey gets far less back to our state from Washington than any other state in America,” said Rep. Josh Gottheimer (D-Tenafly). “That’s total BS. “Our families are getting screwed by the moocher states.”

The home states of the Republican leaders of the House and Senate were in positive territory. Residents of Louisiana, home of House Speaker Mike Johnson and Majority Leader Steve Scalise, received an average of $8,131 more in federal benefits than they paid in federal taxes, 11th highest among the 50 states. Senate Majority Leader John Thune’s home state of South Dakota received $1,008 more per person than its federal tax burden. Constituents of Majority Whip John Barrasso (R-Wyoming) received an average of $679 per person.

On the Democratic side, Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries both hail from New York, whose residents sent an average $681 per person more to Washington than they received from the federal government, ranking the state 46th. 

House Minority Whip Katherine Clark’s home state of Massachusetts ranked 49th with a per person deficit of $1,827. And residents of Illinois, home of Senate Minority Whip Dick Durbin, sent $569 person more to D.C. than they received in services.

The three states with the biggest positive balance of payments were New Mexico, $15,195 per capita; Virginia, $18,111; and Alaska, $12,735.

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