From the CBO: Federal Grants to State and Local Governments

This is an old report - 2013, I'll look for a newer version - but it'll give us a good look at the precise nature of the grants states and local governments get from the federal government.

- Click here for the report.

- And here.

Note the top areas of spending
1 - Health
2 - Income Security (welfare)
3 - Education
4 - Transportation

Neither Social Security nor Medicare are included since both are run by the national government.