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For third consecutive year, NY received more federal funds than it sent

Cash is fanned out from a wallet.
Elise Amendola/AP
/
AP
Cash is fanned out from a wallet.

For the third year in a row, New York state received more funding from the federal government than it paid in federal taxes — a trend that State Comptroller Thomas DiNapoli said is due to massive federal relief packages to combat the economic impacts of the COVID-19 pandemic.

In fiscal year 2022, New York generated $361.8 billion in federal taxes and received $383 billion in federal spending, meaning the state received $1.06 for every dollar it sent to Washington. The national average was $1.28.

"The response to the direct economic conditions brought on by the pandemic boosted federal aid for New York and all other states," DiNapoli said.

New York has a long history of being a “donor” state that typically pays more money to the federal government than it receives in federal spending.

DiNapoli warned that New York’s balance of payments with Washington could turn negative again as federal spending returns to its pre-pandemic levels.

Desiree D'Iorio serves as the Long Island Bureau Chief for WSHU.