For years, New York officials have complained the state is a "donor" to the federal government: New York taxpayers send more to the federal government than they get back in spending.
But the billions of dollars in federal pandemic aid changed that, at least temporarily.
A report released Thursday by state Comptroller Tom DiNapoli's office found the aid sent to New York in response to the COVID-19 pandemic boost the state's per capita ranking in the federal balance of payments from 49th to 30th between 2019 and 2021.
Every dollar New Yorkers sent in taxes to the federal government, about $1.51 was sent back in federal spending. That's still below the national average of $1.70 for each dollar from a state. All states had a "positive" balance of federal spending per tax dollars due to emerngecy relief money for the pandemic.
The money helped boost coffers in the wake of the pandemic and the subsequent closure of businesses and public gathering spaces, which also significantly increased the jobless rate. Money for programs like Medicaid as well as unemployment aid were also increased.
Federal aid is drying up as emergency orders are be eased and lifted.
“New York’s per capita ranking jumped because of pandemic funding for fiscal recovery, economic support, Medicaid and vaccine manufacturing contracts,” DiNapoli said. “This significant improvement reflects short-term measures, however, not enduring policy changes. As the temporary aid winds down, the underlying trends are likely to return, with New York reverting to getting far less from Washington than it sends.”
New York's share of federal tax payments accounted for 7.7% of $3.8 trillion, more than the state's 6% share in 2021. All told, New Yorkers per capita sends $14,753 to the federal government, third among states last year.