Federal Aid to States Will be Cut by $5.1 billion in FY13, According to Study

The current federal FY13 budget under sequestration will reduce the funding level for state aid by $5.1 billion from FY12, according to the study by the Economic Policy Institute, a nonprofit think tank focusing on low- and middle-income labor and economic policy. When including sequestration and funding levels under the current continuing resolution, 25 states and the District of Columbia will have federal grant funding reduced in FY13 compared to FY12, with the five highest states being Louisiana, Indiana, Maine, Connecticut and Massachusetts.