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Yes. State governments often receive federal money in the form of grants. It is generally earmarked for a particular purpose.

For example, when the federal government decided to encourage a nationwide interstate system, the federal government made grant money available to the states. The states then designed and constructed interstate highways, that complied with the federal directives, with the funds. Today, each state has and maintains a network of interstate highways that conform with a uniform standard.

This sort of process is also very common with the education and energy systems, among other things.

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13y ago
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14y ago

The Federal government provides funds for certain programs to state governments, but state governments are responsible for collecting their own revenues (aka taxes).

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Alana Pinnock

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1y ago

yes

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Q: Does federal government fund state government?
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