Fiscal Federalism


Fiscal federalism refers to how federal, state, and local governments share funding and administrative responsibilities within our federal system.  The funding for these programs comes from taxes and fees.

Federal funds flow into Tennessee through four pathways:  1) direct payments to individual Tennesseans through entitlement programs, 2) grants to state and local governments, 3) federal wages paid to federal employees working in Tennessee, and 4) federal contracts that are implemented in Tennessee.  You can find statewide federal funding data by the program by clicking on one of the four navigation boxes below.

The State of Tennessee provides funding to counties and municipalities.  The county area reports represent intergovernmental funding in the county area, not necessarily to the county government.  The intergovernmental funding within a city area is limited to Federal grants performed in Tennessee and for Tennessee Valley Authority Payments in Lieu of Taxes paid to cities in Tennessee.  View intergovernmental funding to a county area by clicking on the map below or the dropdown box beside the map.

Note: The federal fiscal year runs October 1st through September 30th, while the state fiscal year is July 1st through June 30th, and some information is only available by the calendar year.  Totals may not match the individual components because of different timeframes and other factors.