Economy

Where states will feel the pinch if feds cut funding

Federal dollars comprised 34% of the more than $3 trillion states spent last fiscal year.
The Capitol Dome and East Front of the of the House of Representatives is seen in Washington, Wednesday, April 19, 2023. (AP Photo/J. Scott Applewhite, File)

State budget writers are bracing for federal spending cuts this year, as the Trump administration withholds millions of dollars from state agencies and Republicans in Congress consider slashing funding for Medicaid, cash assistance and other programs states administer.

While the details are still up in the air, a major pullback in federal spending would be devastating for state budgets.

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