New York received $1.06 for every tax dollar it sent to the federal government in fiscal year 2023, according to a new report from State Comptroller Tom DiNapoli. But with federal pandemic aid drying up and potential budget cuts on the horizon, that balance could soon flip back into negative territory.
New York’s balance of payments remains positive—for now
For the fourth consecutive year, New York maintained a positive balance of payments with Washington, largely due to federal pandemic stimulus programs. In total, the state received $17,266 per capita in federal spending, while contributing $16,355 per capita in federal taxes. That placed New York 21st in federal spending per capita and 3rd in contributions.
However, New York’s return of $1.06 per dollar lags the national average of $1.32, and ranks 42nd among the states.
“This may be the last year New Yorkers see a positive return,” DiNapoli said. “With pandemic aid ending and new federal actions underway, we risk falling back into a long-standing pattern of giving more than we get.”
Federal actions may drain state services
The report highlights several looming threats to New York’s financial health:
- Cuts to health care, education, and infrastructure programs
- Paused disbursements from the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA)
- A potential $158 million clawback from school districts
- A $367 million freeze in public health and mental health funds
DiNapoli warned that state taxpayers cannot make up the difference if major federal programs are scaled back.
Where New York ranks high—and low—in federal support
Federal programs where New York ranks high in per capita funding:
- Medicaid: $3,082 (2nd)
- SNAP: $533 (4th)
- Public housing and rental aid: $295 (1st)
- Supplemental Security Income: $238 (6th)
Federal areas where New York ranks near the bottom:
- Federal employee wages: $459 (42nd)
- Veterans benefits: $445 (49th)
- Federal retirement benefits: $216 (50th)
- Highway funding: $103 (49th)
Tax contributions far above average
New Yorkers pay significantly more in federal taxes than residents of most states. The state contributed 7.5% of total U.S. tax revenue in 2023, despite representing only 5.8% of the population.
- Individual income taxes: $8,745 per capita (36% above national average)
- Social insurance taxes: $5,472 per capita (7th nationally)
- Corporate income taxes: $1,840 per capita (1st nationally)
Report underscores dependence on federal funding
The comptroller’s report emphasizes that federal spending supports everything from health care and food aid to infrastructure and public safety in New York. Cuts to these areas, DiNapoli cautioned, will weaken services statewide.
The analysis is part of a long-standing series first initiated by former U.S. Senator Daniel Patrick Moynihan in 1977. DiNapoli’s office has now produced the report annually for nine years.
“Federal policy decisions have direct consequences for every New Yorker,” DiNapoli said. “We must be vigilant and proactive in protecting the support our communities depend on.”
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