What’s the Deal With State Budgets This Year?

Each January brings legislators back to their statehouses, where budget decisions once again take center stage. In the past few years, state budgets have been bolstered by leftover pandemic-era federal aid. In fact, in 2023, federal dollars made up about 36% of state revenue.

But in 2026, new federal policy changes are in play that will leave lawmakers with tough choices about how to balance their budgets and still fund the programs that serve their constituents.

In this episode of "After the Fact," Pew expert Liz Farmer shares the key financial issues states will face this year and how they could affect your community.