State and federal governments primarily fund public assistance programs. Public assistance programs, such as Medicaid and Temporary Assistance for Needy Families (TANF), are jointly financed through federal grants to states, which cover a significant portion of costs—often 50-77% depending on the program and state. States administer these programs and contribute their own funds, typically from taxes and other revenues, while local governments like cities or counties rarely provide primary funding and instead handle administration in select cases (e.g., some California counties).
Funding Breakdown
- Federal Role : Provides the majority via grants for healthcare (e.g., Medicaid), income security, and welfare, totaling over $1 trillion annually to states and localities.
- State Role : Matches federal funds and uses own revenues; public welfare accounts for about 23% of state-local direct expenditures.
- Local Role : Minimal direct funding; focuses on delivery in a few areas, not broad financing.
Among the options—state governments, city governments, local and county governments, or state and federal governments—the correct answer is state and federal governments.
