Medicaid Drives Growth in Federal Grants to States

States get roughly a third of their revenue from the federal government, funding that pays for health care, schools, roads, public safety, and other services.1 And since 2008, those grants have increased by 42 percent from $448 billion to $636 billion, adjusted for inflation, driven by rising Medicaid costs. Grants in other program areas have either experienced significantly smaller increases, or even decreases over that time.

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