Please note: This analysis, Medicaid Makes Up Nearly Two-Thirds of Federal Grants to States, was updated on Sept. 21, 2015.
Medicaid is by far the largest federal grant to states, accounting for about 62 percent of total grant funding. The next-largest funding area is income security (temporary cash assistance, employment services, school-provided meals, and similar programs), which at 16 percent is about one-fourth the size of Medicaid. Medicaid was the main driver of the 18 percent increase in total federal grants to states between fiscal years 2008 and 2014. (See "Federal Grants to States Up Since 2008.")