Sanctuary States Do NOT Cost Taxpayers Money. That’s Always Been a Lie
In an entirely predictable return to form, President Trump is again threatening to withhold Federal Funds from Sanctuary Cities and Sanctuary States, as well as cities that have not eradicated Diversity, Equity, and Inclusion policies. He attempted to do the same thing during his first term, until a Federal Appeals Court ruled in 2018 that the President does not have the authority to do so. Of course, Congress had previously decided the same thing all the way back in 1974, with the passage of the Impoundment Control Act, in response to President Richard Nixon.
It’s not wholly unusual for a President to withhold Federal Grant money as a bargaining tactic, but the Trump Administration has a habit of taking this to extremes. This includes threats to withhold emergency funds from states based on policy disputes. It’s particularly egregious concerning the wildfires in California and windstorms in Washington State. Those are two of the states that receive less in Federal Funding than they contribute to Federal Revenue.
The numbers for 2024 won’t be available until next year, but we do have the final numbers for 2023. Only three states contributed at least $70 Billion more to the Federal Government than they received from it: New Jersey, California, and New York. Texas wasn’t far behind with $67 Billion more paid in Federal Taxes than the state received in all Federal Funding. Washington (where I live) trails behind that, with $55 Billion more contributed to Federal Revenue than received. In 2023, only 19 states gave more than they received.
At the other end of that spectrum, there was only one state that took in more than $70 Billion more than was contributed. That was Virginia, with $79 Billion more Federal dollars going into the state than Federal Taxes collected. The next worst state was Alabama, at $41 Billion.
Four states were less than a billion dollars away from breaking even: Pennsylvania, New Hampshire, North Dakota, and Wyoming. Pennsylvania was $965 Million shy of what it contributed to Federal Revenue, and Wyoming was just $339 Million away. South Dakota (where I spent most of my life) and Arkansas weren’t far off, at a $1 Billion Federal Deficit each.
The five states with the greatest positive balance contributed enough in their combined positive difference to almost offset the deficit of the ten states at the opposite end of the spectrum. They were only about $2 Billion shy of erasing Michigan’s debt of $21 Billion.
One of the things I find funniest about the anti-immigration discourse is all the talk of Sanctuary States being a drain on our Tax Dollars, when the three states that carried the highest positive balance are all Sanctuary States: New Jersey, California, and New York.
In fact, of the States that have either declared themselves to be Sanctuary States–or have been designated as such by ICE–seven states (beyond the three I just mentioned) maintained a positive balance in Federal Funding for 2023: Rhode Island, Connecticut, Utah, Colorado, Illinois, Minnesota, and Massachusetts. Rhode Island was the least lucrative of these States, with only $3 Billion more paid in than it received.
The Sanctuary States that received more in Federal Funding than they paid into the Federal Government were Maryland, Oregon (where I work), Hawaii, Vermont, Nevada, and Pennsylvania. Maryland was the most costly to the Federal Government, sitting at a $35 Billion deficit, and Pennsylvania was the least so, at only $965 Million more going into the State than coming out.
And, as one might guess, just the three Sanctuary States with the largest ratio of Federal Revenue going out vs. coming in provided more than enough to offset the six Sanctuary States that received more than they paid in, with $165.04 Billion still to spare. That means the Sanctuary States of California, New Jersey, and New York not only covered every penny they received from the Federal Government, but also contributed an additional 3.8% to the overall Federal Revenue
So, it should be obvious that the talk of Sanctuary States costing taxpayers money is 100% Fiction. In fact, when we take all of the Sanctuary States and calculate the incoming Federal Spending vs. outgoing Federal Revenue, Sanctuary States were sitting at a positive balance of $367.04 Billion in 2023, more than 8% of the $4.4 Trillion in total Federal Revenue for the year.
So, maybe people should stop worrying so much about how much of a burden Sanctuary States are. They clearly aren’t the problem. And for a “successful businessman” like President Trump, it should be plainly obvious that the denial of Emergency Relief Funds to states like California and Washington is Bad for Business.
There’s one final thing that merits mentioning, while on the topic of Emergency Relief Funds. There was an uproar over an entirely imaginary scenario (and one repeated by Donald Trump) wherein President Joe Biden refused to supply funds for North Carolina in response to the devastating floods from Hurricane Helene, which he did not do. However, President Donald Trump cut partial Funding for a program President Biden had in place to cover the costs of debris removal, along with other protective measures. He also canceled a program designed to protect water, sewer, and other infrastructure services that had been devastated by the flooding, and was subsequently sued by the state’s Attorney General. Of course, there was nowhere near the kind of uproar compared to when it was only happening in the imaginations of people who wanted to demonize Joe Biden for something only Donald Trump would choose to do.


