How federally dependent is North Carolina? Here’s what a new study says
A new study from WalletHub, a personal finance website, found that North Carolina is among the least federally dependent states in the country, coming in at No. 31 in the ranking.
To determine the most and least federally dependent states, WalletHub compared them across three key metrics: return on taxes paid to the federal government, share of federal jobs and federal funding as a share of state revenue.
Here’s what to know about how much federal funding North Carolina gets and the share of federal jobs in the state.
How much federal funding does NC get?
In the WalletHub study, “federally dependent” refers to how much federal funds make up a state’s total revenue. The study used U.S. Census data from 2022, when North Carolina received $36.2 billion in federal funding. That year, 28% of the state’s revenue came from federal funds.
For comparison, Alaska (the most federally dependent state, Wallethub found) had more than 50% of it’s total revenue come from federal funds in 2022.
What does federal funding do in NC?
According to a recent report by the NC Budget and Tax Center, the federal funding that North Carolina receives:
- Helps 2.4 million people access health care.
- Provides child care for more than 38,000 children and their working parents.
- Offers food assistance for 1.6 million people.
- Supports education services for more than 200,000 children with disabilities.
- Provides housing assistance for more than 175,000 households.
How will Trump’s NIH cuts impact federal funding in NC?
At the direction of President Trump, National Institutes of Health announced in February that it would limit indirect funding for research projects to 15%, which means many companies and universities in the state would lose out on millions in funding and be forced to make cutbacks, The Charlotte Observer reported.
Duke and UNC-Chapel Hill are the largest beneficiaries of NIH funding in the state, receiving $5.6 billion and $4.9 billion, respectively, since 2015. Duke is the largest employer in Durham County, and UNC is the largest in Orange County.
Large companies based in the state also stand to lose millions in federal funding. Since 2024, Research Triangle Institute, which employs 6,000 staff in 90 countries, has received the third-most funding from the NIH of any North Carolina entity, getting nearly $397 million.
PPD Development LP, a pharmaceutical contract research organization based in Wilmington, and Rho Federal Systems Division, a pharmaceutical company based in Durham, have also received $56 million and $30 million, respectively, in federal funding from the NIH since 2024.
A U.S. judge blocked the move last week, but the Trump administration is expected to appeal the decision, Reuters reported.
How many federal jobs are in NC?
According to the Economic Policy Insititute, there are nearly 85,000 federal employees in North Carolina.
Cumberland County has the most federal employees (over 8,100), likely due to the presence of Fort Bragg and Pope Airfield, military bases that employ a significant portion of the local workforce.
Mecklenburg County has the second-most federal employees, followed closely by Wake County.
