Awk search for a element in the list of strings

Hi, how do I match a particular element in a list and replace it with blank?

awk 'sub/[element in the $list]//' $FILE

list="AL, AK, AZ, AR, CA, CO, CT, DE, FL, GA,
HI, ID, IL, IN, IA, KS, KY, LA, ME, MD,
MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ,
NM, NY, NC, ND, OH, OK, OR, PA, RI, SC,
SD, TN, TX, UT, VT, VA, WA, WV, WI, WY"

Your question doesn't match the subject line. What do you really want to do?

state=${1:-TX}

list="AL, AK, AZ, AR, CA, CO, CT, DE, FL, GA,
HI, ID, IL, IN, IA, KS, KY, LA, ME, MD,
MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ,
NM, NY, NC, ND, OH, OK, OR, PA, RI, SC,
SD, TN, TX, UT, VT, VA, WA, WV, WI, WY"

awk -v state=$state -v list="$list" '
BEGIN { sub( state, "", list); print list; exit }
'

I want to replace all strings that are state abbreviation with blank.
for example, replace NY 12345 with 12345
By the way, what does {1:-TX} mean?