NCPA - National Center for Policy Analysis

Increases in Federal Health Grants to States

May 28, 2014

According to a new report from the Pew Charitable Trusts, federal grants to states in 2014 are 18 percent above prerecession levels.

The bulk of this growth is almost entirely due to growth in Medicaid and other government health programs. Medicaid constitutes nearly two-thirds of federal grant money, making it the largest federal grant issued to the states. But while health-related grants grew between 2008 and 2014, non-health funding -- such as transportation and education -- has fallen:  

  • Total non-health federal grants to states are 5 percent below prerecession levels.
  • Since 2008, federal Medicaid grants have increased 35 percent. Grants to other health programs have increased 21 percent, and grants related to income security (such as social services and job training programs) have increased 1 percent.
  • However, transportation grants have fallen 9 percent since 2008, education grants have declined 10 percent and grants to "everything else" -- including agriculture, energy, community development, justice and veterans benefits services -- dropped 13 percent.

Overall, researchers found an 18 percent net increase in federal grants, with health grants increasing by 34 percent.

Source: "Trends in Federal Grants Vary Between Health and Non-Health Programs," Pew Charitable Trusts, May 2014.


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