Story perspectives

States Grapple with Budget Cuts Amid Declining Federal Aid

3/25/2026

Summary

Story summary

State budgets face stress from federal funding cuts and the end of pandemic aid, with rainy-day funds declining and 2026 spending flat, per National Association of State Budget Officers (NASBO).
New Mexico lawmakers propose an $11.1 billion budget despite lower revenue.
Tennessee will lose federal summer meal programs, increasing child hunger.
Virginia's new governor aims to address rising living costs.
Colorado faces an $850 million deficit, showing different budget-management approaches.

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Story summary

State budgets face stress from federal funding cuts and the end of pandemic aid, with rainy-day funds declining and 2026 spending flat, per National Association of State Budget Officers (NASBO).
New Mexico lawmakers propose an $11.1 billion budget despite lower revenue.
Tennessee will lose federal summer meal programs, increasing child hunger.
Virginia's new governor aims to address rising living costs.
Colorado faces an $850 million deficit, showing different budget-management approaches.