WASHINGTON, D.C. – Figures from the U.S. Census Bureau show that federal spending in Indiana last year declined. Federal spending was down in nine states while it rose in 41 states.
In 2010, federal spending was $58.6 billion, compared to $61.3 billion in 2009. The decline in Indiana was the first since 1994.
The reason for the decline was attributed to a drop in federal stimulus money and less money for defense contracts. Spending for defense contracts in Indiana fell 32 percent, dropping Indiana to 39th nationally.
Defense spending at $4.4 billion is the fourth-largest chunk of federal spending in Indiana, trailing Social Security, $16.2 billion, Medicare, $9 billion, and Medicaid, $5.4 billion.