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Pennsylvania oversight of federal grants
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| •Key terms • Court cases •Major arguments • State responses to federal mandates • Federalism by the numbers • Index of articles about federalism |
Federal grants make up a significant portion of state budgets, providing funding for programs in health care, education, infrastructure, and public assistance.[1][2] These funds are typically accompanied by policy conditions or reporting requirements that shape how states implement federally funded programs. In response, states have developed varying oversight systems to review, approve, and monitor federal funding.
This page summarizes federal grant funding and oversight in Pennsylvania. It includes data on how federal dollars contribute to the state budget, highlights Pennsylvania’s position relative to other states, and analyzes key laws related to grant coordination, transparency, and accountability. This research was last updated in September 2025.
This article includes information about the following topics:
Background
Federal grants are a major source of funding for state governments, supporting programs in areas such as health care, education, transportation, and public assistance.[2] These funds are distributed through a variety of mechanisms—including block grants, categorical grants, and formula-based programs—and are typically accompanied by policy conditions, reporting requirements, or other administrative mandates.
Federal grants are reported as part of a state’s intergovernmental revenue, a category tracked annually by the United States Census Bureau. Intergovernmental revenue includes funds transferred from both federal and local governments, but federal sources account for the vast majority. In 2022, approximately 98% of intergovernmental revenue received by states came from the federal government.[3] In 2023—the most recent year for which data is available—states collectively received about $1.12 trillion in intergovernmental revenue, representing 36.7% of all general revenue.[1]
Because of the scale and conditional nature of federal funding, many states have adopted statutory and administrative frameworks to oversee how agencies apply for, accept, and manage federal grants. These frameworks reflect broader federalism concerns—such as how states balance fiscal dependence with administrative autonomy, and how they respond to federal mandates that may influence state policy priorities.
This research was last updated in July 2025.
Top federal funding programs to states
In fiscal year 2023, the federal government distributed over $1 trillion in grants to states. The largest programs included Medicaid, highway funding, rental assistance, and child nutrition. Medicaid alone accounted for 56.8% of federal grants to states, and the top 20 programs combined made up approximately 87.8% of total federal grant outlays to states.[4]
Federal funding to Pennsylvania
Amount of federal grants to Pennsylvania
In 2023, Pennsylvania received approximately $49.2 billion in intergovernmental revenue out of a total $128.0 billion in state revenue, the 5th-highest amount among the 50 states.[1] The national average was approximately $22.3 billion per state. Across all states, intergovernmental revenue totaled about $1.12 trillion out of $3.04 trillion in general revenue.[1] In 2022, approximately 98% of intergovernmental revenue states received came from the federal government.[3]
Percentage of Pennsylvania budget funded by the federal government
In fiscal year 2023, 38.5% of Pennsylvania’s total state revenue came from intergovernmental sources—primarily federal grants—compared to 36.7% for state governments nationwide.[1] Pennsylvania had the 23rd-highest percentage of state revenue funded by the federal government.
Intergovernmental revenue by state
This table shows the percentage and amount of each state's total revenue that came from intergovernmental sources—primarily federal grants—in fiscal year 2023. It lists states in descending order by the share of revenue from these sources and includes total state revenue, intergovernmental revenue, and the percentage for each state. The data highlights how dependent each state is on federal funding as a portion of its overall budget.
Source: U.S. Census Bureau, Annual Survey of State Government Finances
Pennsylvania statutes on federal grant oversight
Many states have statutory provisions that govern the oversight, approval, transparency, and auditing of federal grants received within the state. These laws typically assign responsibilities to executive agencies, the governor’s office, and the legislature to ensure proper management and accountability of federal funds. This research was last updated in September 2025.
Executive oversight of federal grants
Executive oversight of federal grants refers to statutes that assign responsibility to the governor’s office to review, approve, coordinate, or manage federal grants across the state.
Title 4 Pennsylvania Code § 1.263 assigned an oversight role to the Governor’s Office of Policy and Planning, granting the office authority to apply for, receive, administer, and use federal grants and other money from the federal government.[5]
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Legislative oversight and transparency
Legislative oversight and transparency refers to statutes requiring reports to or involvement from the legislature in managing or approving federal grants.
Ballotpedia could not identify any Pennsylvania statutes that assign this oversight role to the legislative branch.
Audit and financial oversight
Audit and financial oversight refers to statutes related to auditing, financial tracking, or compliance for federal funds.
Ballotpedia could not identify any Pennsylvania statutes that assign an auditing oversight role.
Agency oversight of federal grant applications
Agency oversight of federal grant applications refers to statutes that establish procedures or requirements for how state agencies request or acknowledge federal funding.
Ballotpedia could not identify any Pennsylvania statutes that assign this oversight role to state agencies. }}|}}
Other state oversight of federal grants
Click on a state to find out its oversight of federal grants, including how it reviews, approves, and manages federal funding through statutes, executive procedures, and legislative reporting.
See also
- Federalism by the numbers
- Federalism
- Unfunded Mandates Reform Act
- Regulatory mandate
- Interlocking (cooperative) federalism
External links
Footnotes
- ↑ 1.0 1.1 1.2 1.3 1.4 1.5 U.S. Census Bureau, "2023 Annual Survey of State Government Finances: Historical Tables", accessed July 11, 2025
- ↑ 2.0 2.1 Every CRS Report, "Impacts of Federal Grants and Other Funds on State and Local Budgets", accessed August 12, 2025
- ↑ 3.0 3.1 U.S. Census Bureau, "2022 Census of Governments, State and Local Government Finance Tables", accessed July 11, 2025
- ↑ U.S. Government Publishing Office, "Budget FY 2025 – Table 12.3 – Total Outlays for Grants to State and Local Governments by Function, Agency, and Program: 1940–2024", accessed July 16, 2025
- ↑ Pennsylvania Code & Bulletin, "4 Pa. Chapter 1 Subchapter V. POLICY AND PLANNING", accessed September 23, 2025
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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