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The southwestern state of Arizona has several caveats that play into its dependence on federal money. For one, the state is situated right on the Mexican border and has become a hotbed of illegal immigration and drug activity. Thus, the state receives a lot of funding for border control and drug enforcement causes from the federal government. Arizona is also home to some of the biggest Indian reservations inthe country, which receives money from the government but remains sovereign and autonomous in their own right.The state is also home to lots of federally controlled land — including national parks, like the Grand Canyon — which are unable to be developed for commercial use. There is an opportunity cost to preserving those lands which can’t be overlooked from an economic standpoint.