Medicaid Makes Up Nearly Two-Thirds Of Federal Grants to States

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Medicaid is by far the largest federal grant to states, accounting for 65 percent of total grant funding in 2015. The next-largest funding area is income security (temporary cash assistance, employment services, school-provided meals, and similar programs), which at 14 percent is about one-fifth the size of Medicaid. Medicaid was the main driver of the 30 percent increase in total federal grants to states from 2008 to 2015. (See "Federal Spending Decisions Affect State Budgets.")