Federal Grants: $171.9 billion in total aid to states and localities in FFY 2017

Posted by Chris Dixon on August 23, 2016

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Federal Fiscal Year (FFY) 2009 saw peaks in federal aid to states and localities (a.k.a. "grants"). For FFY 2017, federal grant funding exceeds FFY 2009 levels in four of Deltek's 11 vertical categories. It is flat in one and has decreased in six. FFY 2017 begins October 1, 2016, and runs through September 30, 2017.

Grant funding is the primary means by which the federal government drives its policy priorities at the state and local level. The majority of that funding comes in the form of payments to individuals for certain welfare programs. The remainder supports programs and projects across a wide range of policy areas; $85.3 billion supports capital-related projects, $90.1 billion supports public services.

Using White House budget data for FFY 2017, Deltek has categorized all federal grants to the same verticals as used in the state, local and education (SLED) database of opportunities. Grants that provide payments to individuals (e.g., Medicaid) have been excluded from the analysis below, since those funds cannot be used by SLED entities for IT and AEC investments.

Figure 1. Federal grants to SLED by Deltek vertical, FFY 2009 vs. FFY 2017

SLED Federal Grants by Vertical

Source: Budget of the U.S. Government

The top 25 federal grant funds will dispense roughly 83% ($143.1 billion) of all aid to states and localities in federal fiscal year (FFY) 2017.

Transportation (highways and urban mass transit) and K-12 education (disadvantaged and special education) top the list, followed by welfare for children and families and community development.

Figure 2. The top 25 federal grant funds, FFY 2017

SLED Top 25 Federal Grants

Source: Budget of the U.S. Government

The U.S. Departments of Transportation, Education, and Health and Human Services will disperse 74% ($127.1 billion) of all grant funding to the SLED market in FFY 2017.

Figure 3. Aid to states and localities by federal agency, FFY 2017

SLED Grants by Federal Agency

Source: Budget of the U.S. Government

Note: The non-standard vertical category "Education (Mixed)" is used only for a few grants that fund both Primary/Secondary and Higher Educational activities.

A number of smaller, independent federal agencies also provide grant funding and have been classified as "Other" in the chart above.  The detail of those other agencies is in the chart below.

Figure 4. Aid to states and localities by "Other" federal agencies, FFY 2017

Sled Grants by Other Federal Agency

Source: Budget of the U.S. Government

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