Does California's Economy Prop Up Red States?
Published Jan 16, 2025 at 4:25 PM EST
Updated Jan 16, 2025 at 5:26 PM EST
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Republicans mull adding conditions to federal relief aid for California, which has been devastated by wildfires in Los Angeles County, critics have pointed out that the state already pays more than it receives in federal taxes.
Why It Matters
California's political leadership has
faced scrutiny over its handling of the fires and water resource management, and there have been calls for any federal aid to be conditioned. But these calls have been
met with backlash from both
Democrats and Republicans in California, who argue that states typically get funding without any political stipulations.
At least 24 people have been killed and 1,200 structures destroyed in the Palisades and Eaton fires, which erupted in Los Angeles County last week. They are two of the most destructive fires to hit the region, and it is estimated that recovery efforts will cost billions of dollars.
"Obviously, there has been water resource mismanagement...mistakes, all sorts of problems," the Louisiana
Republican told reporters on Monday. "And it does come down to leadership, and it appears to us that state and local leaders were derelict in their duty in many respects. So that's something that has to be factored in. I think there should probably be conditions on that aid."
But California is already one of the states least reliant on federal aid, according to data from the Rockefeller Institute of Government. In 2022, Californians paid an average of $17,731 in federal taxes, while the state received an average of $15,603 per person.
The state's gross domestic product was about $3.9 trillion in 2023, according to the Public Policy Institute of California. Its economy ranks fifth internationally, behind the U.S., China, Germany and Japan.
Of the 11 states that paid more in federal taxes than they received, all but one, Utah, backed Vice President
Kamala Harris in the 2024 presidential race, according to the data.
Reached for comment by
Newsweek, a spokesperson for Newsom pointed to his previous remarks since the wildfires broke out.
On Tuesday, the Democratic governor told MSNBC: "I'm not meeting Democrats. I'm not meeting Republicans. I'm not meeting Californians. I'm meeting American citizens desperate in need. What they need is empathy, care, compassion, understanding. They need support, not rhetoric. Not strings attached."
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