Wednesday, October 29, 2025

Sid Salter: Shutdown Impacts in Mississippi Require Understanding of Reliance on Federal Funds

Understanding how the current federal government shutdown impacts Mississippi requires at least a fundamental understanding of the state’s reliance on federal funds.

According to Governing Magazine and the State Policy Network’s Center for Practical Federalism, Mississippi depends on federal sources for 44.3% of total state revenues – ranking the state seventh in federal dependence nationally behind Louisiana (51.6%), Arizona (49.2%), Missouri (46.3%), Wyoming (46.2%), Alaska (45.1%), and Montana (44.7%). The analysis is based on U.S. Census data.

Notably, COVID saw Congress send increasing amounts of federal funds to the states during the pandemic and the years that followed, driving federal aid from 31.4% of total state spending to 37% in 2023, a year in which the federal government disbursed $1.05 trillion to the states.

That context matters now more than ever. With the federal government in shutdown mode, Mississippi’s heavy reliance on federal dollars places the state in a precarious position. While the political theater in Washington may seem distant, the consequences are anything but abstract for thousands of Mississippians.

Consider the impact on health and nutrition programs. Federal funding supports Medicaid, SNAP (Supplemental Nutrition Assistance Program), WIC (Women, Infants, and Children), and school lunch programs. A prolonged shutdown threatens the continuity of these services, potentially leaving vulnerable families without access to basic nutrition and healthcare. In a state where poverty rates remain among the highest in the nation, such disruptions are not just inconvenient; they are dangerous.

In 2024, approximately 385,000 Mississippians, or 13.1% of the state's population, benefited from SNAP (Supplemental Nutrition Assistance Program). The WIC program (Special Supplemental Nutrition Program for Women, Infants, and Children) served 59,942 people in Mississippi during that same year.

Then there’s the matter of payroll. Some 30,000 federal employees in Mississippi—ranging from military personnel at installations like Columbus Air Force Base to civilian workers in agencies like the USDA, Social Security Administration, and the VA—face the possibility of delayed paychecks.

Beyond direct federal employees, state workers whose salaries are partially funded by federal grants—such as those in public health, education, and transportation—may also feel the pinch. The ripple effect extends to contractors, small businesses, and local governments that depend on federal dollars to keep projects moving and services running. Yet, to paint Mississippi solely as a dependent state would be to ignore recent major strides in economic development and tax reform. In March 2025, Gov. Tate Reeves signed the “Build Up Mississippi Act,” a sweeping tax overhaul that phases out the state’s individual income tax by 2030. The legislation also reduces the grocery sales tax from 7% to 5% and increases the gasoline tax to support infrastructure investment.

Legislative backers of the tax changes argue that eliminating the income tax positions Mississippi as a more attractive destination for businesses and workers. With only a handful of states operating without an income tax, Mississippi now joins a competitive club that includes Texas, Florida, and Tennessee. The hope is that this move will stimulate private investment, grow the workforce, and diversify the state’s revenue base.

Economic development efforts have also seen impressive momentum. Mississippi has landed several manufacturing and data center projects in recent months, including expansions in automotive and aerospace sectors. These wins suggest that the state is not merely waiting on Washington—it’s working to build a more resilient economy.

But here’s the rub: economic development and tax reform are long-term plays. This is where Mississippi’s leaders must walk a tightrope. On one hand, they must champion policies that promote self-sufficiency and economic competitiveness. On the other, they must acknowledge the reality that federal dollars remain a critical part of the state’s fiscal ecosystem.

The current shutdown is a reminder that Mississippi’s future cannot be built on ideology alone. It requires pragmatism, planning, and a clear-eyed assessment of where we are and where we’re going. The state’s reliance on federal funds is not a moral failing; it’s a structural reality of government shaped by history, demographics, and economics.

Because in states like Mississippi, when Washington sneezes, we catch the flu. And right now, the fever’s rising.

Sid Salter is a syndicated columnist. Contact him at sidsalter@sidsalter.com.

35 comments:

Anonymous said...

Stated differently :

Here’s a concise analytical breakdown of what the passage conveys:



1. Federal Dependence
• Mississippi relies on federal funds for 44.3% of total state revenue, ranking 7th highest nationally.
• Heavy dependence makes the state particularly exposed during federal shutdowns, when federal disbursements (Medicaid, SNAP, WIC, etc.) are delayed.



2. Pandemic Context
• COVID-era federal aid dramatically increased state reliance—from 31.4% (pre-pandemic) to 37% (2023) nationwide.
• The $1.05 trillion in federal outlays in 2023 underscores how much Washington underpins state budgets.



3. Human Impact of a Shutdown
• 385,000 Mississippians (13.1%) receive SNAP, and nearly 60,000 are on WIC—both federally funded.
• Federal payrolls (approx. 30,000 employees) would be disrupted, plus state employees whose positions depend on federal grants.
• The ripple effects would hit local economies, contractors, and small businesses tied to federal funding.



4. Countervailing State Reforms
• Mississippi enacted the Build Up Mississippi Act (2025):
• Phases out individual income tax by 2030.
• Cuts grocery tax from 7% to 5%.
• Raises gas tax for infrastructure.
• Aim: attract business investment, compete with no-income-tax states like Texas, Florida, and Tennessee.



5. Long-Term vs. Short-Term Reality
• Economic development and tax reform are strategic long plays, but federal aid remains indispensable now.
• The author calls for pragmatic policymaking that balances ideological goals with fiscal reality.



6. Closing Message
• The metaphor — “When Washington sneezes, Mississippi catches the flu” — captures the central warning:
Federal dysfunction instantly becomes a Mississippi problem.

Anonymous said...

So most of the people who read and comment here will not be affected by the shutdown in a significant manner. So the “off with their heads” comments will continue. But a large % will be hurt badly and the ripple effect will widen more quickly here in MS than less federally reliant states. What portends for MS should ties be permanently cut? I bet grok has some pretty scary scenarios.

Anonymous said...

Do us all a favor KF and shitcan these AI takes.

Anonymous said...

I cannot speak for the "off with their heads" crowd. But personally, I have no issue with people getting help from these programs when needed. They were designed to be safety nets to help people during hard times. But as a taxpayer that gets to work half the day for me and half for taxes, the abuse and the waste of these programs really pisses me off. For many that safety net has become a hammock. And now we see some of these same people threatening to steal and loot and pillage because their teat is temporarily dry? These abusers seem to have money for iPhones, hair, nails, nice cars, etc...so why not food? Few people in this state appear to be starving.

Anonymous said...

Off with their heads!

Anonymous said...

1. Dependency is a tightly clad temptress. One minute she's putting out, the next she's holding back.
2. The thin gray milk of government's shrunken teats may seem "indispensible", until one finds a work around.
3. MS can escape dependency through parental choice in education, which emphasizes accomplishments of students, not grift of school administrators.

Anonymous said...

If only we had money and governor like Louisana .

Anonymous said...

Don't these federal funds/grants originate from taxpayers, not from a money tree in WDC? This of course after the feds take a 66% cut (vigorish?)

Anonymous said...

Has Sid always used the em dash, or is he not just cranking out these columns with ChatGPT?

Anonymous said...

Taxpayers barely cover but a small fraction of the federal budget. The majority of the federal budget is borrowed from the Rothschilds via their Federal Reserve fractional-reserve banking scheme. It’s just a perpetual debt scheme where the taxpayers service the debt. But the US is no different than any of the other Rothschild controlled central banks. The only countries left without a Rothschild controlled bank are North Korea, Iran, Cuba, Venezuela, and Burma. Globalist mercenaries ensured that Libya, Syria, Iraq, and Afghanistan were toppled and they now have Rothschild banks.

Anonymous said...

I've noticed absolutely no difference during the shutdown, other than receiving an IRS notice that I owe additional income tax.

Anonymous said...

Sid, tell Bennie to vote for the clean CR and reopen the guvmint. This isn’t complicated.

Anonymous said...

Those most dependent on federal dollars have never had much control of Mississippi governmental policies on the statewide level. Their troubles have simply never been a priority in this state. Most of this article is purely academic, an irrelevance when it comes to the actual direction this state will choose. He should direct his attention to some other place.

Anonymous said...

Why do you not like the analysis? Are you mad at the numbers? Are you mad you cannot attack the author personally? The AI feature simply took Sid’s numbers and distilled them down and did so without hiding how it was created. Run it through your own AI chosen bot?

Anonymous said...

You kinda talked your way in to being a spokesman for that crowd…and it makes sense imho. How to fix?

Anonymous said...

Sid did nothing of the sort. The reply states it’s from AI and is a cut and paste of Sid’s info. Nothing more nothing less….

Anonymous said...

Bennie Thompson needs to vote to open the government back up. He is really hurting his voters. Do it now Bennie! I need my WIC/HUD/SNAP payment.

Anonymous said...

The shutdown is 100% bull**** grandstanding. The leaders of both parties in congress and the executive branch need to be taken into a cold dark alley in DC and given what for with a set of brass knuckles. Employees are missing paychecks. Essential workers are working and not getting paid. This is no way to run a small business with two employees, much less a country of 300 + million people. There is plenty of blame to go around, but the Party who controls the House and Senate are responsible for setting the agenda and directing the lawmaking process. If the majority party does not have the votes to pass a measure, they have to make enough concessions to get the votes they need. That is simply how the process works. If they don't like that, they need to see about getting more seats. What gets done or does not get done is ultimately on them.

Anonymous said...

I think we call can read Sid's column and comprehend what he is saying then decide for ourselves whether or not to consult other tools for whatever other information and/or clarity they may provide. If you are driven to pub AI content then start your own f'ing media outlet.

Anonymous said...

@8:52 you forgot the latest and greatest big screens.

Anonymous said...

If the majority party does not have the votes to pass a measure, they have to make enough concessions to get the votes they need.

Categorically incorrect.

Anonymous said...

10:07am
"Noticed no difference during shutdown".
Perhaps, like me, you drive, never fly. Many will notice delayed/canceled flights at Thanksgiving & Christmas. Demwits caused this shit, they hate Thanksgiving & Christmas, but can't afford to interrupt those holidays. They will cave in 10 days.

Anonymous said...

"Federal dysfunction instantly becomes a Mississippi problem".

Appreciated your breakdown, but that last phrase (above) is horseshit. Let's rephrase: "Mississippi dysfunction causes dependency on outside Federal dollars".

IF Mississippi had proper leadership, it wouldn't be in pickle alwasy flirting with disaster. Strange how MS wanted Secession, but now it can't make do without the Mama tit.

Anonymous said...

10:29 try to keep up. One party's position is to keep the budget in place and renew it. They are not trying to cut anything, or change anything. The other party is the one holding out and demanding enormous budget increases to go to people who are citizens of other countries.

Anonymous said...

Notice how absolutely no foreign power is ramping up an invasion force to take over the country while the Government is shut down.

Anonymous said...

Oh boy, one of the trolls is now driven to regurgitate AI output here. What fun Kingfish.

Kingfish said...

Jim Geraghty in National Review yesterday:

Last year, the Congressional Budget Office calculated that extending this credit for a decade would cost $415 billion in direct costs from the subsidies, a $48 billion increase in interest payments from higher deficits, and $25 billion in spending for other programs.

That’s $488 billion, or almost half a trillion dollars. That’s the Democrats’ price to “release the hostage.”

Because this kind of move will blow up the deficit and debt, Democrats want a Republican-run House and Senate to make them permanent, even though Democrats chose not to make these tax credits permanent when they had the chance in 2021 or 2022.

Anonymous said...

Isn't it weird that the "deep red" states where so many scream "off with their heads" about welfare recipients are the largest state-level welfare recipients. Those sporting the red hats constantly complain about the extreme policies of the blue states, which are the states generating the welfare the red states suck up so readily. I think that those living in blue states would happily agree to let each state receive only as much revenue from the Fed as they contribute. That sounds fair, right?

Anonymous said...

I'm not dependent on the Federal Government, the Federal government is dependent on me. Because I see a shitload of my money confiscated by both the Federal and state and they don't send me back anything return. No welfare. No SNAP. No WIC. No Medicaid. No housing assistance. Nada, Zip, zilch, nothing, narn.
There are thousands and thousands of Mississippians that are on the government tit unnecessarily. I for one am beyond sick and tired of working my ass off doing a full time and a part time job only to be taxed at a confiscatory rate while others sit on their collective asses.
And these idiots that say "well she's a single parent" like it's some badge of honor make me sick. My question is why is she a single parent? Because she has made bad life choices and had 5 kids by 5 different men? Guess what that's not my responsibility. It's hers and the father's not mine, and I no longer feel sorry for the kids, it is way past time to hold the parents accountable for their choices.

Kingfish said...

You mean the states with the highest black populations?

Anonymous said...

Yes, dig deeper into your leftist parroting on “deep red states” and you’ll find the truth. Here’s a hint, which cities and demographics in those cities commit the most crime.

Anonymous said...

Categorically incorrect, you say? That how else do you pass a bill - change the threshold of votes needed? Say you passed it when you didn't and hope nobody notices?

Anonymous said...

There is a town in the state of NY called Kiryas Joel, where 95% of the population lives on welfare. The men don’t work and the women are home makers. And they try to have as many kids as possible. This qualifies them for housing, food, money, etc. Kiryas Joel, NY. Look it up!

Anonymous said...

Your post isn't correct. The states with the most SNAP recipients are California, New York, Florida, and Texas.

Anonymous said...

I say we need more of that Yankee money, every dime we can get. Tell them Yankees to go to hell, the south will rise again.


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