A two-digit Federal Information Processing Standard (FIPS) code (FIPS 5-2) uniquely identifies a state, territory, or commonwealth within or of the U.S.. These codes are used by the U.S. Census Bureau, by the Department of Agriculture to form milk-processing plant numbers, and in the Emergency Alert System, and were assigned by NIST. Additional numbers used with the EAS for territorial waters of the U.S. were assigned by the FCC, but are not part of the FIPS standard. Two-letter state codes were assigned as postal abbreviations by the USPS.
http://www.itl.nist.gov/fipspubs/fip5-2.htm
A common question is to ask why are there no State FIPS codes for 03, 07, 14, 43, and 52. These codes are now skipped, but originally were for:
(03) American Samoa, (07) Canal Zone, (14) Guam, (43) Puerto Rico, and (52) Virgin Islands. This caused a lot of difficulty as certain bureaus and agencies would have employees who could not quickly sort these territorial areas out. Thus, all (save for the Canal Zone, now part of Panama) were reassigned new numbers in the >60 range.