Brookings Mountain West presents “By Choice or by Chance: Why is Nevada Last in Federal Funding and What Can Be Done About It?”, a talk by Tracy Gordon, fellow, Economic Studies.
The federal government spends more than $600 billion or 17 percent of its budget each year on grants to states and localities. Nevada consistently ranks at the bottom among states in its allocation of federal dollars per capita. This presentation will examine the reasons for Nevada’s “donor state” status including state demographics, federal funding formulas, and state policy decisions. It will focus especially on Medicaid, the largest federal grant program, and Governor Brian Sandoval’s recent decision to participate in the program expansion scheduled for 2014 under the Affordable Care Act. The presentation will also discuss reasons for intergovernmental grants and potential threats to this source of funding in light of the federal government’s difficult fiscal position.