From whom do states receive funding based on per capita income?

States receive funding based on per capita income through Medicaid. Medicaid is a joint federal and state program that provides health coverage to qualifying low-income individuals and families. The federal government matches state Medicaid spending, and the amount of federal funding that states receive can be influenced by per capita income in the states. Higher per capita income typically results in a lower federal matching rate, whereas lower per capita income allows states to receive more federal funds.

The formula used for determining the federal matching rate under Medicaid calculates the amount of federal support based on states' per capita income relative to the national average. This structure aims to provide more assistance to states with less economic capacity to fund their Medicaid programs thus enhancing the health care accessibility for vulnerable populations.