The Wall Street Journal’s Kim Strassel recently interviewed State Policy Network’s Tony Woodlief on her All Things with Kim Strassel podcast.
Tony explained how the government shutdown is impacting the states, why 37% of state budgets now come from federal funds, and what reforms could make states more resilient when D.C. stalls.
“States have perfected the art of getting every dollar they can out of D.C.,” Tony said. “But there’s nothing conservative about sending money to Washington so they can pick the winners and losers—and then send some of it back.”
The conversation drew from SPN’s new policy brief, “Washington’s Favorite Dependents: The 50 States.” The report ranks all 50 states by their reliance on federal funds and outlines practical steps state lawmakers can take to reduce dependency and strengthen their fiscal resilience.
Tony and Kim discussed how this growing dependence leaves states vulnerable during shutdowns, the hidden costs of federal grants, and the need for greater state-level oversight of bureaucratic decisions. He also shared examples of states like Utah and Oregon that are taking steps to restore legislative control over spending.
Watch and listen to the conversation here.
With thanks to—and in memory of—Karen Wright, who sparked our federalism work and helped others see the power of the states.