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State oversight of federal grants

| Federalism |
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| •Key terms • Court cases •Major arguments • State responses to federal mandates •State oversight of federal grants • Federalism by the numbers • Index |
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 the use of federal funding.
This page provides a state-by-state overview of federal grant funding and oversight. It summarizes how federal dollars fit into state budgets and outlines state statutory provisions governing grant coordination, approval, reporting, public transparency, and contingency planning. The page also includes highlights, maps, and tables showing how states structure these oversight mechanisms. This research was last updated in December 2025.
State oversight of federal grants
All states have some statutory provisions related to the oversight of federal grants, though the scope and focus vary. Some states place approval or administration of federal funds with the governor or budget office, others with the legislature, and many use blended or alternative arrangements. Additional provisions often address agency coordination, audit requirements, public reporting, and procedures for responding to changes in federal funding. Together, these provisions comprise the core elements of state oversight of federal funds. Taken together, these laws show that states use a mix of executive, legislative, agency, public, and audit mechanisms to oversee federal grants, with the balance differing across jurisdictions.
For specific details and information about a state, click here.
This page includes information about the following topics, click on any section to explore it in more detail.
- 50 state overview of state frameworks, covering governors, legislatures, agencies, and public transparency.
- Summary of how much federal funding states receive and how reliant state budgets are on federal grants.
- Directory of all 50 states showing their executive, legislative, and agency oversight of federal grant activity.
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. States vary widely in how these frameworks are structured, with some centralizing authority in executive agencies and others distributing responsibilities across legislative, budget, and oversight bodies; collectively, these arrangements define the state's oversight of federal grant activity. 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 December 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 through which states received federal funding were 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]
Overview of state oversight of federal grants
This section provides an overview of how states conduct oversight of federal grants, including gubernatorial approval, legislative authority, agency coordination, public transparency, and state contingency planning. It includes summaries, comparative maps, and detailed tables showing how all 50 states structure each type of oversight. For specific details and information about a state, click here.
- Summary table showing how each state structures its oversight of federal grants.
- Whether governors must approve federal grant applications or have no required approval role.
- Whether legislatures must approve federal grants or have no statutory approval authority.
- Whether states require public reporting, hearings, or transparency for federal grant activity.
State-by-state overview of federal grants oversight
This table provides a state-by-state overview of how each state oversees federal grants, summarizing the key statutes, agencies, and approval processes involved in managing federal funds.
Gubernatorial oversight of federal grants
States adopt different models for how governors participate in federal grant activity. In some states, governors must directly review or approve grant applications, while in others their role is limited to coordination, budget planning, or information-sharing. Many states assign primary authority elsewhere—such as legislatures, agencies, or budget offices—leaving governors without a required approval role.
- Explicit approval: Sixteen states require governors to formally approve grant applications or the acceptance of federal funds, giving them direct authority over whether federal money enters the state system.
- Partial or indirect approval: Sixteen states involve governors in coordination, notification, or budget oversight roles, but do not require them to approve individual grants.
- No explicit approval: Eighteen states assign approval and management responsibilities to agencies, budget offices, or legislatures, leaving governors with no required sign-off role on federal grants.
State legislative oversight of federal grants
States legislatures also vary in the extent of their authority over federal grants, shaped by each state's preferences for fiscal oversight and interbranch control. In some jurisdictions, lawmakers must approve federal applications or spending before funds can be used, while in others their involvement centers on monitoring, reporting, or fiscal review. A smaller number give legislatures no statutory approval role, leaving acceptance of federal funds largely to executive agencies.
- Explicit approval: Seventeen states require legislative bodies—often the full legislature, a fiscal committee, or an emergency board—to formally approve federal grant applications or expenditures, giving lawmakers direct authority over the acceptance and use of federal funds.
- Partial or indirect approval: Twenty-seven states involve legislatures through reporting, notification, fiscal reviews, or ongoing oversight of federal funds, but do not require them to approve specific grants.
- No explicit approval: Six states assign no statutory approval role to the legislature; federal grants are managed and accepted through executive agencies or central budget offices without legislative sign-off.
State agency oversight of federal grants
States differ in how much responsibility they assign to agencies for managing federal grants, reflecting broader administrative and budgeting structures. Some states concentrate grant oversight in a single statewide agency or budget office, while others distribute tasks such as reporting, coordination, or review across multiple agencies. A minority provide no centralized agency role at all, relying instead on governors, legislatures, or auditors.
- Centralized agency oversight: Twenty-five states give a single statewide administrative or budget office primary responsibility for coordinating, reviewing, or managing federal grant activity across agencies.
- Distributed or limited agency oversight: Fifteen states assign reporting or oversight duties to multiple agencies without designating a central coordinating authority.
- No defined agency oversight role: Ten states do not assign a central agency any specific grant-management responsibilities.
State public oversight of federal grants
Public transparency requirements for federal grants differ considerably across states, reflecting varied approaches to openness, accountability, and public engagement. Some states require public access to grant information through hearings, online postings, or searchable databases, giving residents a direct view into how federal funds are used. Others provide only limited transparency, and many do not mandate any public-facing disclosure of federal grant activity.
- Strong public oversight: Nine states require public hearings, searchable databases, online posting of grant agreements, or other transparency tools that give the public direct access to federal grant information.
- Limited public oversight: Two states provide some public-facing disclosures—such as published financial reports or audited summaries—but do not require comprehensive public transparency or public input.
- No defined public oversight: Thirty-nine states do not mandate public reporting, public access, or public hearings related to federal grant activity.
State contingency plans for federal grants
States differ widely in whether they require agencies to prepare contingency plans for potential reductions or loss of federal funds. A small number of states have statutes requiring agencies to draft formal plans, submit mitigation strategies, or manage program adjustments when federal funding is reduced or denied. Most states, however, have no statutory requirement for contingency planning, relying instead on existing budget, audit, or reporting processes.
- Mandatory contingency plans: Four states require agencies to prepare contingency plans or take specific actions when federal funds are reduced or denied.
- No mandatory contingency plans: Forty-six states do not require agencies to develop contingency plans for the loss of federal funds.
Federal funding to states
Amount of federal grants to states
In 2023, states collectively received about $1.12 trillion in intergovernmental revenue out of $3.04 trillion in total general revenue nationwide.[1] This averaged approximately $22.3 billion in intergovernmental revenue per state.[1] Amounts varied widely across states, ranging from California, which received the highest level of intergovernmental revenue at $137.7 billion, to South Dakota, which received the lowest at $2.6 billion.[1] In 2022, about 98% of all intergovernmental revenue received by states came from the federal government.[3]
Percentage of state budgets funded by the federal government
In fiscal year 2023, 36.7% of state revenue nationwide came from intergovernmental revenue—primarily federal grants.[1] States varied widely: Louisiana relied the most on federal funds, with 51.6% of its revenue coming from federal sources, followed by Arizona (49.1%) and Missouri (46.3%). At the other end of the spectrum, Hawaii had the lowest reliance at 26.6%, with Kansas (27.3%) and Utah (27.5%) also among the states least dependent on federal grants.[1]
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
State-by-state oversight of federal grants
This section provides access to all 50 state pages on federal grant oversight. Select a state to see how it reviews, approves, and manages federal funding through its statutes, executive procedures, legislative processes, and reporting requirements.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
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 1.6 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
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