Federal funding cuts shift state budgets

A variety of factors, many stemming from federal funding and policy changes, are impacting state budgets across the U.S.

By: Statehouse Reporting Project

Outlets: Source New Mexico

Published: March 18, 2026

Words: 1,871

Last Updated: 4 months, 2 weeks ago

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A perfect storm has arrived on the ledgers of many state budgets, bearing down on the people who often need help the most.

Federal and state policy decisions, the end of pandemic aid and long-term fiscal trends — such as people aging into Social Security benefits — are requiring states to take a tougher look at their financial plans than they have in the past.

President Donald Trump’s One Big Beautiful Bill Act is weighing …

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