Federal dollars support a wide array of public services and systems that touch the lives of all Californians--from Social Security and healthcare to highway construction and public schools. A large share, but less than a majority, of this federal funding flows through California’s state budget. The current state budget includes nearly $96 billion in federal funds for 2016-17, representing more than one-third of the total state budget. Five percent of those funds are dedicated to public higher education. Read the report .