Intergovernmental Revenue
Money a city receives from federal or state government through grants, shared taxes, or direct transfers.
How It Works
Intergovernmental revenue includes formula-based transfers (state revenue sharing), competitive grants (federal HUD/DOT grants), and pass-through funding (state motor fuel tax distributions). This category typically represents 15-30% of city revenue. Cities that rely heavily on intergovernmental revenue are vulnerable to cuts at the state or federal level. The ARPA pandemic relief grants temporarily spiked this category in 2021-2024.
Related Terms
- Federal Grants — Funding from the federal government to cities for specific purposes — housing, transportation, public health, law enforcement, and environmental protection.
- Revenue Diversity — The degree to which a city's revenue comes from multiple sources (property tax, sales tax, fees, grants) rather than being concentrated in a single stream.
- Community Development Block Grant (CDBG) — A major federal grant program administered by HUD that provides cities with funding for housing, infrastructure, and economic development in low- and moderate-income areas.
About This Definition
This definition is part of the CitySpend Municipal Finance Glossary — 59 terms explaining how city governments fund and manage public services. All definitions are written in plain language for taxpayers, journalists, students, and municipal bond investors.