New York‘s Federal Balance of Payments Rank Dips to 45th Per Capita in 2023
New York’s position in the federal balance of payments, a measure of how much federal money a state receives versus how much it sends to washington, saw a slight decline in 2023. The state ranked 45th on a per capita basis, dropping one spot from its 2022 ranking of 44th.This means New york received $3,425 less per person than the national average of $4,099 in federal expenditures for 2023.
Nationally,federal receipts across all states decreased by 7.3% in 2023, while federal expenditures saw a 1.4% increase. New York experienced a more pronounced downturn, with federal tax receipts falling by 8.4% and overall federal expenditures declining by 1.7%.The report indicates that if pandemic-related spending were excluded, New York’s federal expenditures would have decreased even further, and its balance of payments rank would have plummeted from 27th to 47th.
While COVID-19 relief measures temporarily boosted the dollar amount of New York’s balance of payments, the state’s large population means these funds, when distributed on a per capita basis, do not considerably alter its historically low ranking. Excluding pandemic spending, New York’s per capita balance of payments rank remained at 45th in 2023.
In 2023,only three states reported a negative balance of payments. The states with the least favorable dollar balances were New Jersey (-$18.9 billion), Massachusetts (-$6.8 billion), Washington (-$54 million), New Hampshire (+$32 million), and Wyoming (+$1.9 billion). Conversely, the top five states with the most favorable dollar balances were Virginia ($145.4 billion), Maryland ($81.1 billion), Texas ($80.0 billion), Pennsylvania ($62.8 billion),and Ohio ($60.0 billion).For every dollar New York contributed to the federal government in 2023, it received $1.04 in federal expenditures.This is considerably lower than the national average of $1.32 received for every dollar contributed. New York,characterized by a high concentration of income and wealth,continued to contribute significantly more in federal receipts on a per capita basis ($16,145) than the national average ($12,662),a difference of $3,483.On a per capita basis,the bottom five states in the balance of payments for 2023 were New Jersey (-$2,011),Massachusetts (-$967),Washington (-$7),New Hampshire (+$23),and California (+$342). The top five states with the most favorable per capita balances were Virginia ($16,650), New Mexico ($16,178), Alaska ($14,760), Maryland ($13,037), and West Virginia ($12,130).
The report suggests that the lingering effects of the pandemic on federal spending and receipts indicate a likelihood that New York will revert to its historical role as a net donor state. The argument that new York’s significant fiscal capacity justifies its role in subsidizing other states overlooks the significant economic disparities and diverse needs within New York itself. Despite these internal needs, which often register high across various federal indicators, the state’s overall wealth can mask these challenges.
The full report can be accessed at https://rockinst.org/wp-content/uploads/2025/07/2025-bop-report-web.pdf, and the balance of payments data dashboard is available at https://rockinst.org/issue-areas/fiscal-analysis/balance-of-payments-portal/.
