A new report from the Wisconsin Policy Forum reveals that Wisconsin receives less federal funding per capita than the national average, even as proposed federal budget cuts could deeply impact critical services across the state. In 2022, Wisconsin received $14,678 per person in federal funds compared to the national average of $16,606.
While Wisconsin residents and businesses contributed $71 billion in federal taxes—$37 billion in income taxes, $25.4 billion in payroll taxes, and $6.7 billion in corporate taxes—the state received $86.5 billion in federal funds. That created a net gain of $15 billion, or $2,679 per resident. Still, that’s below the national average net benefit of $2,889.
The report stresses that despite not always being visible, federal spending significantly influences every community in Wisconsin, large or small. In fact, federal dollars made up 23.7% of total personal income in the state—a measure that includes everything from wages and salaries to government assistance.
Major federal programs now facing proposed cuts include Social Security, Medicare, the Supplemental Nutrition Assistance Program (SNAP), and the Affordable Care Act (ACA) marketplace. These programs are deeply embedded in the economic life of Wisconsin’s working families, seniors, and low-income residents.
The Wisconsin Department of Health Services estimates that the state could lose $314 million in SNAP funding alone if federal proposals move forward. Additionally, the state’s Medicaid director warns that over 60,000 residents may lose health insurance coverage if the proposed federal reconciliation package remains unchanged.
With Wisconsin already receiving below-average support relative to its tax contributions, state leaders are watching closely as Congress debates cuts that would disproportionately impact states like theirs. The balance between what Wisconsin pays in and what it gets back remains a key part of the debate over the fairness and structure of federal spending.
