The federal government's decision to pause grants could have significant implications for state governments, as approximately 36% of state government revenue as of late 2022 came from federal grants, according to analysis by the Pew Charitable Trusts. A substantial portion of this funding is allocated to Medicaid, a program that offers health insurance to low-income individuals and is primarily funded by the federal government but administered by states, as reported by the General Accounting Office. During the Covid-19 pandemic, grants to states saw a notable increase due to relief and stimulus funding.
