Analysts and academics are staying busy crunching numbers and eyeballing reductions in federal funding to the states under the Trump administration.
"Since the start of President Donald Trump's second term, the executive branch and Congress have both publicly indicated a desire to substantially roll back federal funding to states, and they have taken actions to reduce federal spending," said Pew.
The quote comes from a Pew
Per their report, federal funding to the states hit a low in 1989 by accounting for 22.4% of state revenues. The figure hit a high of 36.7% in 2021 and is now down to 36%.
KBRA is also looking at how the Trump administration's One Big Beautiful Bill Act will affect state budgets and credit ratings with an emphasis on higher Medicaid and Supplemental Nutrition Assistance Program costs.
"The total cost shift to states will not be known until full implementation of the law's provisions and state policy decisions determine whether and how to address programmatic gaps," said KBRA.
The quote comes from their report which charts numbers from the National Association of State Budget Officers that compares state reserve funds to expenditures. Reserves reached an all-time high of 16.2% in 2023 and has since fallen to 12.2%
"State balances, though somewhat reduced, are still at historically high levels, which could provide some breathing room as a multitude of oncoming funding changes and administrative responsibilities are addressed," said KBRA.
The Center on Budget and Policy Priorities is drilling down into concerns about the states being tasked with enforcing work requirements being attached to Medicaid benefits.
The Center's
"The best option is for Congress to repeal the harmful work requirement mandate from H.R. 1 (OBBA)," said the CBPP.
"States need more time to ensure their policies, systems, and staffing plans are in place to minimize the number of eligible people whose health care is taken away."
Yesterday, the FEMA Review Council formed by President Trump to guide the reform of the Federal Emergency Management Agency, released its
Keeping with the ongoing theme of less federal support, one of the report's guiding principles is to return leadership for emergency response and recovery to the states, local government, Tribes, and territories.
According to the report, "contrary to that misconception, it is the SLTT governments that have always had the primary response role during a disaster."
"Reorienting the National Preparedness System to empower SLTT governments to manage the mitigation, response, and recovery of disasters effectively returns the federal role from leading to supporting."
Sen. Peter Welch D- Vt., who sits on the Senate Finance Committee said, "Our communities need to know that the federal government will be there to help when disaster hits. We can fix the problems that exist within FEMA without starving the agency of the resources it needs to help communities recovering from disaster."
