Albany Update
New York State Reverts to Negative Balance of Payments with Washington
ALBANY, NY – With the historic, multiyear pandemic aid from the federal government mostly in the past, New York returned to a negative balance of payments with Washington for the first time since federal fiscal year (FFY) 2019, according to a report released on Sept. 29 by State Comptroller Thomas P. DiNapoli.
In FFY 2024, the state generated $353.5 billion in federal taxes and received $341.1 billion in federal spending. New York’s balance of payments was negative $12.4 billion. For every $1 in federal taxes paid to Washington, the state received $0.97 in return, compared with a national average of $1.21.
New York has historically been a state that pays more in federal taxes than it receives in federal spending. This pattern was temporarily altered by substantial increases in federal spending spurred by the COVID-19 pandemic. All states had a positive balance of payments in FFYs 2020 and 2021, and New York continued to have one through FFY 2023. In FFY 2024, New York was one of only 10 states with a negative balance of payments.
“The state is once again sending more money to Washington than it gets back,” Mr. DiNapoli said. “With the impact of the federal pandemic aid largely gone, New York returns to the familiar position of being in the red. With damaging policies being implemented by the federal government, New York could have a disproportionate reduction in federal funding, which will only worsen the state’s balance of payments in future years.”
In FFY 2024, U.S. residents, on average, benefited from approximately $16,999 per capita in federal expenditures and paid approximately $14,008 per capita in federal taxes, resulting in a positive balance of $2,991 per capita. In contrast, New York’s per capita balance was negative $618.
Key findings in the State Comptroller’s report include:
- New York State ranked poorly in per capita highway spending (49th), driven by factors including population density, transportation patterns, and the distribution formulas for federal highway funds. The state also ranked poorly in procurement (44th), the report stated.
- New York generated $17,674 per capita for the federal treasury, ranking third among states in FFY 2024. The state received $17,056 per capita, ranking 25th in federal spending per capita.
- Federal income taxes accounted for the largest portion of taxes paid by New Yorkers, at $9,527 per capita, 34.7% higher than the national average of $7,075.
- New York ranked second in per capita corporate income taxes, at $2,098, which was 35.4% higher than the national average of $1,549.
- New Mexico continued to rank first in per capita balance of payments (+$18,111), followed by Virginia, Alaska, Hawaii, and West Virginia. New York ranked 45th, while New Jersey ranked last (50th).
In FFY 2024, New York received $60.8 billion in Medicaid funding, or $3,040 per capita, 68.5% higher than the national average of $1,804. This ranked New York third in the nation. New York’s robust social safety net encompasses more than public health programs, and the state receives substantial support through other areas of federal funding, including the Supplemental Nutrition Assistance Program (SNAP), public housing and rental assistance, Temporary Assistance for Needy Families (TANF), and the Low-Income Home Energy Assistance Program.
In 2024 per capita spending, New York ranked first in rental assistance and public housing, as well as TANF; fifth in homeless assistance grants; sixth in SNAP; and eighth in grants for child and family services. New York also ranked among the highest in the nation for transit grants (third per capita) and Pell Grants for undergraduate students (10th per capita).
As in Mr. DiNapoli’s previous analysis, New York’s per capita share tends to be low in areas related to the federal workforce, retirement payments, and veterans’ benefits. Much of this is attributable to New York’s relatively smaller number of federal employees and veterans, the report stated.
Published: October 15, 2026