New York Paid More in Federal Taxes Than It Received
The state saw a $12.4 billion negative federal fiscal balance in 2024 as tax collections outpaced federal spending.
Updated on Sept. 29, 2026 in Regional Economics
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In fiscal 2024, New York generated $353.5 billion in federal taxes while receiving $341.1 billion in federal spending. This left the state with a $12.4 billion negative balance, marking a shift from the previous year's $17.8 billion positive balance.
Why it matters
The return to a negative balance stems from a 10.4% increase in federal tax contributions alongside the fading impact of pandemic-era federal spending. This shift highlights how changes in federal funding allocations directly affect the state's net fiscal standing.
New York residents generated $17,674 in federal taxes per person, resulting in a negative balance of $618 per resident. This contrasts with the national average positive balance of $2,991 per resident.
The players
State Comptroller's Office
The agency responsible for analyzing the state's fiscal relationship with the federal government.
Internal Revenue Service
The federal agency tasked with collecting taxes that factor into the state's fiscal balance.
The details
The state comptroller's office calculated these figures by assigning 96.8% of federal revenues and 85.6% of federal outlays to specific states using Internal Revenue Service data and federal budget records. While New York received $60.8 billion in Medicaid funding, it ranked 49th per resident in federal highway spending. The widening gap between taxes paid and funds received reflects both rising state tax collections and the conclusion of temporary federal pandemic relief measures.
Timeline
Fiscal 2023 saw New York hold a positive $17.8 billion federal balance.
Fiscal 2024 resulted in a $12.4 billion negative federal balance for the state.
The federal fiscal year 2024 concluded on September 30, 2024.
Money Landscape
New York's recent fiscal balance reflects a broader shift as the economy moves past the influx of pandemic-era federal spending. This returns the state to a position where federal tax contributions grow relative to the amount of federal aid received.
Future changes to federal funding for programs like Medicaid and SNAP may directly influence the state's budget and services. Residents should monitor state-level budget discussions with a tax professional to understand how shifts in federal aid might affect local services.
The takeaway
New York's fiscal balance has shifted as pandemic-era federal funding fades and local tax contributions grow. Households should track how state policy adjustments adapt to changes in federal support for major programs like Medicaid and SNAP.
Further reading
For a deeper look at local economic trends, visit our Regional Economics section.
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Do you believe states should receive in federal spending exactly what they pay in federal taxes?
