Which U.S. states receive most grant awards in 2025?

Which U.S. states receive most grant awards in 2025: Understanding which U.S. states receive the most federal grant awards in 2025 helps policymakers, nonprofits, businesses, and individuals spot funding hotspots—and decide where to focus efforts. This guide explains why some states lead in grant awards, the types of grants distributed, and how that influences economic development. You'll also find action‑oriented strategies for securing funding and insights into how public money flows across states.

Which U.S. states receive most grant awards in 2025?>>>>>>>>>>>>>>>>>

 

Ranking the Top U.S. States by Federal Grant Awards in 2025 

1 FY 2024 Data as a Baseline

Fiscal year 2024 (FY 2024) shows California, New York, and Texas as the top three states by total federal grant funding:

• California: $119.1 billion

• New York: $82.9 billion

• Texas: $41.7 billion

While 2025 data is still emerging, year-to-date spending trends and known FY 2024 figures suggest these states remain in the lead.

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2 What Drives Funding Volume?

Top grant awards reflect:

1. Population size – More people = more funding programs and need

2. Program infrastructure – Large states are better positioned to apply for and administer grants

3. Program diversity – States engaged in health, infrastructure, education, and energy receive broader funding portfolios

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3 Other States Worth Noting

Beyond the big three, other heavy hitters often include:

• Florida (≈ $59B)

• Pennsylvania (≈ $57B)

• Ohio, Illinois, Michigan, New Jersey, North Carolina—these typically rank in the top 10 nationally.

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Core Grant Categories and State Winners

1 Healthcare & Medicaid Grants

Federal Medicaid is the largest single funding program, distributing approximately $614.8 billion in FY 2024 . States with high enrollment—New York, California, Texas, Florida—all receive abundant funds.

2 Infrastructure & Clean‑Energy Grants

Two major 2025-era programs:

• IIJA (Infrastructure Investment and Jobs Act)

• Inflation Reduction Act

For example, California secured a $3.1 billion FRA grant for high-speed rail, and Arizona received $6.6 billion for clean-energy initiatives.

3 Education & Workforce Development Grants

• Pell Grants: NY, Mississippi, and New Jersey have the highest average awards.

• Workforce and training (e.g., Dept. of Labor Dislocated Worker Grants) are distributed across many states, with formula and competitive streams.

4 Public Safety & Nonprofit Security Grants

Programs like the Nonprofit Security Grant Program funnel money into California, New York, Florida, and Pennsylvania—focused on religious and community service sites.

Step‑by‑Step: How States Secure Top Grant Awards

1 Step 1 – Centralize Grant Strategy

• Most top states maintain a state-level grants office or designate agencies to coordinate applications and manage awards.

2 Step 2 – Monitor Key Grants and Forecasts

• Monitor USAspending.gov for award summaries by state and program.

• Use agency dashboards—e.g., HHS TAGGS, SAMHSA, DOT BUILD Grants—to stay updated .

3 Step 3 – Build Collaborative Coalitions

• Many grants require multi‑agency coordination (e.g., transportation + environmental agencies).

• Collaborative proposals enhance competitiveness, especially for infrastructure and regional development grants.

4 Step 4 – Excel in Compliance and Reporting

• Grant agencies look for stringent compliance: budgeting, timelines, outcomes, and auditing.

• States with strong project management earn trust and fast-track renewals.

5 Step 5 – Prioritize Competitive Grants

• Competitive grants like PDG B‑5 often go to a subset of states. In 2024, winners included NY, KS, SC, NC, DC, RI, VA, WA, MI, MN, TN.

• Being able to prove early-childhood or regional infrastructure initiatives matters.

State-by-State Insights: High-Performers vs High‑Need

1 Funding vs. Dependence Ratio

• High absolute funding does not always translate to high state reliance.

• Montana and New Mexico receive a high percentage of state revenue from federal sources.

• Louisiana gets ~50% of revenue federally .

2 Per‑Capita Insights

• Alaska gets around $8,600 per resident, the nation's highest per-capita federal inflow.

• Low-population states often lead per‑capita lists due to infrastructure and health program spending.

3 Pandemic Recovery Fund Allocation

• Many COVID-era public health grants have expired, impacting South Dakota, Wyoming, and Alaska the most in per-capita loss.

• Understanding which states lost pandemic-era funding helps highlight where budgets face pressure.

Tips for Grant‑Seekers: Getting Funding Regardless of Location

1 Understand the Program Landscape

• Track major federal announcements (NOFOs) across agencies: HHS, DoT, DoL, EPA, USDA, DOE.

• Subscribe to SAMHSA, HHS, and agency dashboards for 2025 forecasts .

2 Position Yourself Strategically

• Know if your state is already a top-ranked recipient—network within that infrastructure.

• In underserved states, niche or underserved region grants may be available.

3 Form Partnerships

• Federal funders prefer inter-state and cross-sector alliances—coalitions increase competitiveness.

4 Invest in Compliance

• Sound accounting and monitoring systems improve credibility.

• States with lower admin overhead can offer efficient grant delivery.

5 Leverage Local Resources

• Join national associations (e.g., NGA, NCSL) and attend grant‑writing workshops.

• Many federal agencies offer application- and project‑management training.

Conclusion

In 2025, California, New York, and Texas continue to dominate federal grant awards by volume—driven by their population, grant-seeking infrastructure, and multi-sector engagement. However, state reliance and per-capita measures reveal different dynamics—small states like Alaska, Montana, and Louisiana may receive less total funding but depend more heavily on it.

To join the ranks of top grantees:

• Centralize grant strategy

• Build strong compliance systems

• Monitor funding pipelines

• Foster partnerships that cross sectors or state lines

Federal grant data is dynamic—staying informed via USAspending.gov and agency dashboards ensures your competitive edge.

FAQs

1. Which state gets the most federal grants?

   As of FY 2024, California leads with over $119 billion in awards. Data trends through 2025 indicate it remains the top recipient.

2. Do smaller states receive more federal funds per person?

   Yes—Alaska tops the per-capita list (~$8,600/person), thanks to specific program allocations and federal funding models .

3. Has COVID‑19 funding expired? Who's most affected?

   Pandemic-era health grants have lapsed. South Dakota, Wyoming, and Alaska lost the most funding per capita in 2025.

4. Which programs deliver the largest federal grants?

   Major programs include Medicaid, IIJA infrastructure grants, Inflation Reduction Act funding, Pell Grants, and public health block grants.

5. Can any organization apply regardless of state?

   Yes—federal grants are open to eligible entities nation-wide. However, competitive advantages may be stronger in states with dedicated grant offices and proven project capacity.