Utah’s reliance on federal funding is an issue that has concerned Utah officials for a significant amount of time. Officials want to know where this concern stems from, while residents are asking how these funds are used.
Every fiscal year, Utah has around $25 billion to spend on various programs, including Medicaid, food assistance and housing. The federal government funds about 25% of this amount, making Utah 39th in relation to other states for its help from the federal government.
“Utah continues to have a heavy dependence on federal financial assistance,” shared State Auditor John Dougall. “Which amounted to $9.7 billion in federal expenditures and $662 million in loans, loan guarantees, endowments and nonmonetary assistance.”
This dependence, in the eyes of financial and economical experts, has significant risks associated with it. It may lead states to have less power over their finances. This creates potentially higher costs and less accountability, leading to a situation where states are reliant on federal aid for basic services.
The drawback is that many programs within the state could undergo changes therefore affecting state funding as a whole. About 50% of federal funds go towards Medicaid, 12% to public and higher education, 8% to transportation and infrastructure and 6% to other expenses. Residents and officials are worried that potential plans to get rid of the dependency on the federal budget will lead to funding cuts for these programs.
With plans by the Trump administration to audit government programs, residents and economical officials warn Utah officials to consider the risks of the state’s dependence on federal funds.
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Author: Tallon Taylor
Photographer: Anna Mower
Editor: Anna Mower
news@suunews.net
