News Release

April 1, 2025 (Salt Lake City) – States and the federal government share a vital economic relationship. This data summary, the eighth in a series on state and federal economic linkages from the Kem C. Gardner Policy Institute, presents the Utah-federal government nexus for the payment balance between taxes paid by Utahns to the federal government and funds allocated to Utah from the federal government.

“Utah consistently places in the bottom quarter of states in per capita federal balance of payments, or taxes paid less funds received by Utahns,” said Phil Dean, chief economist at the Gardner Institute. “Utah’s low ranking can largely be explained by the state’s young and healthy population with less reliance on federal programs like Social Security and Medicaid.”

Key findings from the summary include the following:

Size and Composition – Utahns paid an estimated $42.8 billion in federal taxes and received an estimated $38.1 billion in federal dollars in Federal Fiscal Year (FFY) 2022, resulting in a negative $4.7 billion balance of payments. Federal funds flow directly to federal employees through wages and benefits, individuals and companies through direct program payments (such as Social Security and Medicare), and to state and local governments and businesses through contracts and grants.

Per Capita Dollars – Per capita, the net of federal taxes paid and federal dollars received in Utah equaled negative $1,373 in FFY 2022. This contrasts with the nearly $2,000 average positive per capita balance of payments among states. Utah received fewer federal dollars per capita than any other state in FFY 2022.

Utah Population – Utah’s young, healthy, and overall prosperous population characteristics contribute to Utah’s low balance of payments ranking. For example, as the state with the smallest share of its population over age 65, Utah receives a smaller share from the two most extensive federal programs that benefit seniors (Social Security and Medicare). Regularly ranking among the lowest poverty rates in the nation (and the lowest official poverty rate in 2021-2023), Utah receives a smaller share of federal resources targeted to assist low-income households. For example, as of August 2024, Utah’s share of the state population on Medicaid ranked lowest in the nation.

The complete data summary is available online.

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