Nevada’s Budget: Less Federal Reliance Than Many States, but Still Vital
Nevada operates on a biennial budget cycle. The state's fiscal health relies heavily on federal support. For the current biennium, federal funds account for approximately 28%, or roughly $15 billion, of Nevada’s $54 billion total budget. This significant federal contribution highlights Nevada’s vulnerability to changes in federal policy, particularly amid ongoing discussions in Congress about spending cuts and government shutdowns.
Federal funding flows into Nevada primarily through grants for joint programs in healthcare, education, transportation, and social services. Nearly 80% ($12 billion) of these federal dollars support Nevada’s Department of Health and Human Services (DHS). Within DHS, Medicaid is the primary recipient program of federal funds, providing healthcare coverage for approximately 761K Nevadans. Other federally supported programs include the Children’s Health Insurance Program, public health initiatives, and behavioral health services. Beyond healthcare, federal funds bolster other key areas:
Education: Federal grants, such as Title I and school nutrition programs, provide approximately $950 million annually (10% of education spending), supporting K-12 schools amid Nevada’s limited local revenues.
Transportation: Federal grants cover 55% of highway and bridge projects, including $2.8 billion from the Infrastructure Investment and Jobs Act through 2026, vital for rural and tourism-heavy areas.
Agriculture and Veterans Services: Over 40% of these departments’ budgets come from federal sources, funding disability employment, and veterans’ services.
Nevada is less dependent than about half of the other U.S. states, though programs like Medicaid rely heavily on federal money. The state that uses federal funds the most is New Mexico, with about 33% of its budget coming from federal sources, mainly for healthcare and roads. The state that uses federal funds the least is Vermont, with only 13% of its budget from federal money, with higher local tax revenue contributions.
As Nevada enters the next biennium, the state’s leaders are emphasizing the need for a budget that prioritizes fiscal discipline, revenue diversification, and reserve strengthening, while federal funding remains essential for delivering services such as healthcare, education, and infrastructure.
Source:*For full budget details, https://budget.nv.gov/.
