State savings weaken as budget pressures increase, analysis warns

By: Kevin Hardy

Outlets: Stateline

Published: March 25, 2026

Words: 547

Last Updated: 4 months, 1 week ago

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State rainy day funds — money reserved to cover unexpected expenses and patch short-term budget holes — are declining nationally as states face increased costs, lower tax revenue and federal budget cuts, a new analysis found.

The decline follows a period of strong reserves bolstered by federal pandemic aid and higher-than-expected tax collections, the report said.

Researchers at The Pew Charitable Trusts found that the number of days that state reserves could cover …

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