State Legislatures Brace for More Belt-Tightening in 2026 Sessions

State legislatures next year will need to adjust annual spending plans to accommodate revisions in key allocations outlined in the recently adopted fiscal year 2026 (FY26) federal budget. HR 1, the One Big Beautiful Bill Act, the FY26 budget signed into law by President Donald Trump on July 4, makes wholesale changes to tax codes and a range of other state-administered programs, most notably Medicare/Medicaid and SNAP. According to a July 30 analysis by MultiState Vice President Bill Kramer, and the National Association of State Budget Officers’ annual Fiscal Survey of States, HR 1 will have little impact on already-adopted FY26 state budgets. “Many provisions will not go into effect until late 2026 or beyond, so states have some time to begin preparing for the changes,” Kramer writes....