Federal Spending in Mississippi

March 25th, 2016

The federal government and federal dollars influence economic activity in every state. From social security payouts to defense purchases, federal spending drives state economies to varying degrees based on the state, its population, politics, and economic health. According to a recent brief from The Pew Charitable Trusts, Mississippi has the highest portion of its economic activity supported by federal dollars of not only all Mid South states, but all 50 states[i].

In Mississippi, federal dollars account for a third (32.9%) of all economic activity in the state. Analysis of federal spending includes five major categories: retirement benefits, nonretirement benefits (i.e. Medicare benefits, food assistance, etc.), grants, contracts, and salaries and wages for federal employees.

Federal spending varies greatly by state depending on demographics, primary industries, and local legislative decisions on what public services are made available. Similarly, Mid South states vary on the degree of federal dollars they depend on to support their economies. On the low end, federal spending represents 18.5% of economic activity in Louisiana compared to one-third of activity in Mississippi.

Over the next several blogs, I will take a more in-depth look into federal spending in Mississippi while highlighting its impact on Mississippi policies, programs, and people. For updates to the series, check the Hope Policy Institute website for new posts and follow me on Twitter.

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[i] Federal spending in the District of Columbia was higher than in any state, at 42.4 percent.