Story perspectives

States Grapple with Budget Deficits Amid Federal Cuts

10/23/2025

Summary

Story summary

Oregon faces a projected $373 million deficit due to federal funding cuts from H.R. 1.
Oregon Governor Tina Kotek's administration is considering spending cuts or tapping reserves to cover it.
Washington Governor Bob Ferguson expects a $2 billion budget shortfall from federal Medicaid cuts; a proposal will follow December's final revenue forecast.
In Chicago, Mayor Brandon Johnson's budget plan faces opposition from aldermen and Governor JB Pritzker over tax increases.

History

Historical Context

The Budget Control Act of 2011, enacted in response to a debt-ceiling crisis, mandated $1.2 trillion in automatic spending cuts over ten years after a bipartisan committee failed to reach an agreement. By 2013, these cuts significantly impacted state budgets, with Oregon facing a $373 million deficit and Washington anticipating a $2 billion shortfall, threatening public services and fiscal stability.

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Story summary

Oregon faces a projected $373 million deficit due to federal funding cuts from H.R. 1.
Oregon Governor Tina Kotek's administration is considering spending cuts or tapping reserves to cover it.
Washington Governor Bob Ferguson expects a $2 billion budget shortfall from federal Medicaid cuts; a proposal will follow December's final revenue forecast.
In Chicago, Mayor Brandon Johnson's budget plan faces opposition from aldermen and Governor JB Pritzker over tax increases.

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