North Dakota Tops U.S. States With Massive $21 Billion Cash Surplus

Only 24 out of the 50 U.S. states have enough cash to pay their bills right now. A fresh look at state finances reveals one red state standing alone from the crowd. North Dakota took the top spot in Truth in Accounting's 2026 Financial State of the States report. It finished fiscal year 2025 with $21 billion more than it needed for its obligations. That massive cushion gave the state the highest "Taxpayer Surplus" in the nation at $72,300 per person.

Do not mistake that number for cash hitting your pocketbook. It represents each taxpayer's share of the surplus under Truth in Accounting's specific methodology. The gap between rich states and broke ones matters deeply when the economy stumbles. States with healthy balance sheets can weather storms, keep public services running, and honor retirement promises. States drowning in debt face hard choices about taxes, spending, and borrowing when money dries up.

North Dakota built its strong position on a Legacy Fund. This state investment pool grows from oil tax revenue. Even as oil, gas, and coal tax receipts dropped due to lower energy prices, strong investment earnings and federal grants plugged the hole, according to the report. Alaska followed in the rankings, then Wyoming, Utah, and Tennessee. These five states all posted surpluses ranging from $11,400 in Tennessee up to North Dakota's massive $72,300. That handful of wealthy states contrasts sharply with nearly half the country.

The data found that 24 states lacked enough assets to cover their financial duties. New Jersey hit rock bottom with a $162.3 billion shortfall. Truth in Accounting turns that gap into a $45,800 "Taxpayer Burden," making it the worst in the land. Connecticut ranked 49th, followed by Illinois, Massachusetts, and California. The bottom five states showed burdens ranging from $16,000 in California to New Jersey's staggering $45,800.

Unfunded pension liabilities pressure state budgets across America. States held $775 billion in unfunded pension debts and $490 billion in unfunded retiree health care obligations during fiscal 2025, the report noted. Despite those holes, most states improved financially in 2025. Strong investment returns boosted pension assets and helped shrink unfunded obligations. Truth in Accounting warned that market drops could reverse those gains quickly.