Federal government current transfer payments: Other current transfer payments: Grants-in-aid to state and local governments

FGSL • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

971.50

Year-over-Year Change

2.11%

Date Range

1/1/1947 - 4/1/2025

Summary

This economic trend measures federal government current transfer payments to state and local governments in the form of grants-in-aid. It provides insight into the scale and composition of federal fiscal support for state and local public programs and services.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The FGSL series represents one component of total federal government current transfer payments, which includes both payments to individuals and payments to state/local governments. This data helps analysts and policymakers understand the federal government's role in financing state and local public activities.

Methodology

The data is collected and published by the U.S. Bureau of Economic Analysis as part of the National Income and Product Accounts.

Historical Context

Trends in FGSL can inform assessments of federal-state fiscal relations and the scope of the public sector.

Key Facts

  • FGSL represented 2.3% of GDP in 2021.
  • Grants-in-aid have grown from 0.9% of GDP in 1960 to 2.3% in 2021.
  • Medicaid is the largest component of FGSL, accounting for over 60% of the total.

FAQs

Q: What does this economic trend measure?

A: The FGSL series measures federal government current transfer payments made to state and local governments in the form of grants-in-aid, a key component of federal fiscal support for state and local public programs.

Q: Why is this trend relevant for users or analysts?

A: Trends in FGSL provide insight into the scope of federal involvement in financing state and local government activities, which is important for understanding intergovernmental fiscal relations and the size/role of the public sector.

Q: How is this data collected or calculated?

A: The data is collected and published by the U.S. Bureau of Economic Analysis as part of the National Income and Product Accounts.

Q: How is this trend used in economic policy?

A: Analysts and policymakers use FGSL data to assess the federal government's fiscal support for state and local public programs, which can inform debates over the appropriate scope of federal-state fiscal relations.

Q: Are there update delays or limitations?

A: The FGSL data is published quarterly with a lag of several months, so there may be delays in accessing the most recent information.

Related Trends

Citation

U.S. Federal Reserve, Federal government current transfer payments: Other current transfer payments: Grants-in-aid to state and local governments (FGSL), retrieved from FRED.