The U.S. Bureau of the Census has released its report of Federal expenditures by state for Fiscal Year 2007. (Reports for FY2005 and FY2006 were released earlier this year.) Once again, Michigan’s position in total Federal spending fell a notch, from 44th in 2006 to 45th in 2007. Michigan’s rank in Federal grants to state and local government, however, rose to 36th in 2007 from 40th in 2006, largely as a result of increased Federal funding of the Michigan Medicaid program and funds for Temporary Assistance to Needy Families.