Utah in a relatively safe space amidst federal funding cuts

SALT LAKE CITY — In a seemingly endless whirlwind of federal funding cuts and changes, a study has found that Utah has a relatively strong foundation to weather the storm.

Low individual federal funding is typical to Utah

According to the study from the Kem C. Gardner Policy Institute, Utah consistently ranks among the states least reliant on federal payments.

Read more: Young scientists see career pathways vanish as schools adapt to federal funding cuts

The study reveals the state received just over $11,000 per person from the federal government in 2022. The lowest amount out of all 50 states and well below the nation’s average of $15,540 per capita.

The main reasons why Utah isn’t very reliant on federal government spending is because of our unique demographics and strong economy.

“Utah stands out because we have such a young population,” Kem C. Gardner Research Economist Natalie Roney said. “A lot of these federal dollars going to individuals specifically are through social security, and then there are also a lot of Medicare payments, and obviously those are targeting those older populations.”

Utah has the smallest share of the 65 years and older population in the nation, meaning we receive very few payments compared to the rest of the nation.

The state’s strong economy also limits the number of federal payments needed for residents.

“Our economy performs well, and we have among the lowest poverty rate in the nation, meaning that we receive fewer dollars related to programs to assist low-income households,” Roney said.

Utah is in a good position to handle changes

The federal funding landscape has many changes in progress. However, because of Utah’s already low reliance on individual federal funding, the state is in a good position to manage the changes.

Read more: University of Utah economic professor explains goal of tariffs

“The money we receive is still substantial. But, as far as other states go, it’s not as dramatic, it’s not as drastic,” Roney said. “These cuts won’t hurt quite as hard as they would in other states. I think right now, given some of the uncertainties at the federal level, it’s a bit reassuring to know that Utah has really good footing and a really good foundation regardless of a lot of these changes that may be coming our way.”