The federal government channels more than $150 billion into the state’s economy each year, according to a federal economic impact report released June 18 by the Maryland comptroller’s office.

Produced with the University of Maryland’s business school, the report is the first phase in a project intended to examine the state’s reliance on the federal government and prepare for the potential consequences of diminished federal funding under U.S. President Donald Trump’s administration.

“This is just good economic planning to sort of figure out what might happen and what we should do to address possible shortfalls,” finance professor Vojislav Maksimovic, who worked on the report, told The Diamondback.

The report found Maryland has the third-highest number of federal jobs in the country, only behind Virginia and Washington, D.C., with an estimated 229,000 workers earning a combined $26.9 billion annually. Federal employees make up 6 percent of the state’s workforce and earn 10 percent of its income, the report read.

Maryland also lost an estimated 5,300 federal jobs in March and April alone, the report said.

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Maryland Comptroller Brooke Lierman wrote in the report that Trump administration cuts to the federal workforce and spending put the long standing relationship between the state and the federal government “at risk.” She added that quantifying federal changes is an important part of preparing the state for financial shifts.

“I am optimistic that our state, buoyed by our educational institutions, local and state leaders, and other important industries, has the wherewithal, determination, and talent to weather the forecasted economic storm brought on by the Trump Administration and emerge in a stronger position for the long term,” Lierman wrote in the report.

The federal government invests $46.2 billion worth of federal contracts in the state, as well as $30.6 billion of grants and $37.7 billion of direct spending, according to the report. The report also said there are more than 153,000 households in Maryland that receive retirement income, a combined $8.8 billion yearly.

Despite ranking 18th in population compared to other states, Maryland also has the second highest average federal-employee income and ranks fifth highest in defense spending despite being ranked 18th in population nationwide, the report said.

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Maksimovic worked with finance professor Liu Yang, research professor Kislaya Prasad and a team of eight finance graduate students to compile the report. The team used public federal data, grants, contracts and direct payments from the past 20 years, business school dean Prabhudev Konana wrote in the report.

“By harnessing our extensive academic resources and scholarly expertise, we are delighted to contribute actionable intelligence that equips policymakers to serve constituents more effectively, manage risk, and strategically plan initiatives that substantially improve community welfare and economic resilience,” Konana wrote.

The next phase of the report, which is set to be released later this summer, will analyze and estimate the direct financial impacts of the Trump administration. That report will be released alongside an interactive tool that will allow users to predict how specific cuts might affect various communities and industries.

The project can be used by local and state economic development offices, industry leaders and the Maryland General Assembly to assess how the state can plan for cuts and “reduce exposure” to changes in the federal government, Maksimovic explained.

“We really are very sensitive to what happens federally,” Maksimovic said. “More so than almost any other state in the United States.”