Federal Agencies
Taxes provide revenue for federal, local, and state governments to fund essential services--defense, highways, police, a justice system--that benefit all citizens, who could not provide such services very effectively for themselves.
Issue Summary. The federal government awards hundreds of billions of dollars in grants to state and local governments each year. These grants help finance a broad range of services, including health care, education, social services, infrastructure, and public safety.
Recipients are any entity that has received federal money in the form of contracts, grants, loans, or other financial assistance. Our Recipient Profiles offer insights into a specific recipient, including award trends over time and top 5 rankings from a variety of categories.
Federal funds are all monies received directly from the federal government, the expenditure of which is administered through or under the direction of any agency/department and reported as Federal Trust Fund moneys in the “Detail of Appropriations” in the Governor's Budget.
Federal grants are typically only for states and organizations. But you may be able to get a federal loan for education, a small business, and more. If you need help with food, health care, or utilities, visit USA.gov's benefits page.
Health programs account for the largest share of federal grants. Federal grants to state and local governments totaled $1.1 trillion, or 18 percent of all federal outlays, in 2023. Medicaid accounted for the largest portion, with the federal government paying out $616 billion.
Participants in the federal funds market include commercial banks, thrift institutions, agencies and branches of banks in the United States, federal agencies, and government securities deal- ers. The participants on the buy side and sell side are the same.
Federal Funding Accountability and Transparency Act (FFATA) - requires information about Federal awards to be posted on a single, searchable website that is open for public access. USAspending.gov - the official source for spending data for the U.S. Government.
Understanding Federal Funds
Fed funds help commercial banks meet their daily reserve requirements, which is the amount of money that banks are required to maintain at their regional Federal Reserve. Reserve requirements are based on the volume of customer deposits that each bank holds.
The federal government collects revenue from a variety of sources, including individual income taxes, payroll taxes, corporate income taxes, and excise taxes. It also collects revenue from services like admission to national parks and customs duties. In 20242, the federal government collected $4.92 trillion.
Major expenditure categories are healthcare, Social Security, and defense; income and payroll taxes are the primary revenue sources. During FY2022, the federal government spent $6.3 trillion.
While we all are required to pay federal income tax, not everyone will have to file a tax return. Find out how much you have to make to file taxes.
Internal Revenue Code section 3401(c) indicates that an “officer, employee, or elected official” of government is an employee for income tax withholding purposes. However, in some special cases the law or a Section 218 Agreement may specify otherwise.
Welfare refers to federal government-sponsored assistance programs for individuals and families in need. Eligibility for benefits is based on income levels and family size.
The majority of federal revenue comes from individual and corporate income taxes as well as social insurance taxes (such as the Social Security taxes described above).
State With Most Welfare Recipients
California stands out as the state with the highest number of welfare recipients, with 1,911,000 households benefiting from SNAP.
In the United States, federal grants are economic aid issued by the United States government out of the general federal revenue. A federal grant is an award of financial assistance from a federal agency to a recipient to carry out a public purpose of support or stimulation authorized by a law of the United States.
The individual income tax has been the largest single source of federal revenue since 1944, and in 2022, it comprised 54 percent of total revenues and 10.5 percent of GDP in 2022 (figure 3). Individual income tax revenue in 2022 was the highest ever recorded.
Eligibility Requirements. Our general eligibility requirements include that you have financial need for need-based aid, are a U.S. citizen or eligible noncitizen, and are enrolled in an eligible degree or certificate program at an eligible college or career/trade school.
There's no official income cutoff to qualify for federal student aid. Yes, your family's annual income influences your aid package, but other factors, such as family size and year in school, also help determine your level of aid. Ultimately, submitting a FAFSA is relatively easy and 100% free.
The maximum amount of money you can get from a Pell Grant is: $7,395 (2024–25). The amount granted depends on your Student Aid Index (SAI), cost of attendance, your status as a full-time or part-time student, and your plans to attend school for a full academic year or less.