State budgets

Analysts credited governance improvements Connecticut put in place in 2018, which have reduced the state's liabilities and improved its reserves. 

California lawmakers, who announced a deal with Gov. Gavin Newsom in June, say his administration failed to agree on loan terms ahead this week's deadline.

Gov. Michelle Lujan Grisham ordered lawmakers back into session to mitigate the impact on hospitals, Medicaid, and other programs from federal policy changes.

Several major cities are staring down budget deficits and credit downgrades as the effects of inflation and OBBBA trickles down while relationships with their states adds complexity.

The state has teed up a $21.5 billion, six-year transportation budget as it deals with the fallout from federal workforce cuts, a credit downgrade, and a feud with the Trump administration.

Special budget sessions, falling tax revenues and provisions in the One Big Beautiful Bill Act are combining with tariffs and cuts to the federal workforce to create headaches for the states.

Philadelphia's economy has been growing. But deep cuts Pennsylvania may impose on the regional public transportion system could have serious negative impacts.

Treasurer Brad Briner said the unused money was in state accounts for years.

The state will tap reserve funds, close tax loopholes and cut spending to address a more than $1 billion shortfall in its fiscal 2026 budget.

The president's authority to withhold already appropriated federal funds has been the focus of dozens of lawsuits, including from cities and states.

Auditor General Frank Mautino said the delay was due largely to $1.2 billion erroneously collected from pharmaceutical companies that had to be addressed.

Changes to the federal tax code affect how states manage their budgets depending on how or if the state tax codes conform to the new rules.

A flagship program under the Infrastructure Investment and Jobs Act, the EV charging station initiative was slow to take off despite $5 billion of federal funds.

Both sides of the muni market would be affected by new tax schemes being weighed by states with growing populations and dwindling revenues, according to analysts.

The state faces a $1.2 billion revenue hit in fiscal 2026 , as well as future spending pressures, from President Trump's One Big Beautiful Bill.

The House Transportation and Infrastructure Committee has rolled out bipartisan legislation designed to depoliticize FEMA and move the agency towards formula-based grants, a win for counties.

The Trump administration has denied Maryland's request for Federal Emergency Management Agency funding to aid communities on the western side of the state who were flooded out in May.

The effects of the One Big Beautiful Bill have yet to make a dent in state and local budgets as market experts and academics look into the future with concern.

Illinois Gov. JB Pritzker led governors from 18 states in demanding the Trump administration release $6.8 billion in education funding.

"Most states do not expect to be able to keep key roads and bridges to a state of good repair," said David Draine, principal officer, public sector, retirement systems for the Pew Charitable Trusts.