New Jersey is the least dependent state in the nation on federal funding, according to a new analysis that examined how much states receive from Washington compared with how much they contribute in federal taxes.

The study by the personal finance website WalletHub ranked New Jersey 50th out of the 50 states, based on three key measures: the return residents receive on taxes paid to the federal government, the share of federal jobs in each state, and how much of a state’s revenue comes from federal funding.

New Jersey’s low ranking indicates the state receives comparatively less federal funding relative to what its residents and businesses send to Washington.

According to the analysis, states such as Alaska, Kentucky and West Virginia are the most dependent on federal support, while California, Delaware and Massachusetts join New Jersey among the least dependent states.

The study assigns each state a score measuring federal dependency on a 100-point scale. New Jersey recorded a score of 13.94, the lowest in the country.

Policy advocates note that the ranking could also underscore opportunities for the state to draw additional federal dollars back to New Jersey. One example is the federal tax credit scholarship program, which would allow states to opt in and allow taxpayers to receive a tax credits for contributions to scholarship organizations that help families pay for private school tuition or other educational expenses.

If Governor Sherrill chooses to opt the state into the program, it could allow New Jersey residents to redirect millions of dollars in federal tax credits toward scholarships spent within the state, potentially boosting the state economy while expanding educational options for families.

Under the law, which was included in the One Big Beautiful Bill signed by President Trump in July, taxpayers can receive a maximum $1,700 tax credit per year for contributions made to state-recognized scholarship granting organizations. The SGO’s who would be required to grant scholarships to students – both in public and nonpublic schools – for elementary and secondary education expenses, including tuition, books, supplies, uniforms, transportation, computers, and other eligible expenses.

However, the law also required that each individual state opt in to the program.

WalletHub researchers said the findings reflect differences in state economies and government structures. States with lower incomes or smaller tax bases often receive more federal assistance, while wealthier states tend to contribute more in federal taxes than they receive back.

Residents in states that do not opt in would still be allowed to donate to scholarship organizations in other states that did opt in, potentially setting up a scenario where tens of millions of dollars can flow out of state, benefiting another state’s economy.

Overall, the study suggests that New Jersey stands out nationally for its relative fiscal independence from federal support, reflecting the state’s high incomes, large tax contributions and diversified economy.

WalletHub compiled the rankings using data from the Internal Revenue Service, U.S. Census Bureau, Bureau of Labor Statistics and USAspending.gov.