Economy

Federal upheaval spurs downgraded state revenue projections

Tariffs and mass layoffs at the federal level are affecting state fiscal analysts’ outlooks.
Elon Musk, left, shakes hands with President Donald Trump at the finals for the NCAA wrestling championship, Saturday, March 22, 2025, in Philadelphia. (AP Photo/Matt Rourke)

Some state fiscal analysts are estimating that their states will collect fewer tax dollars next fiscal year than previously expected, as the Trump administration’s policies weigh on the economy.

Analysts in at least five states — Colorado, Delaware, Hawaii, Maryland and Washington — cited the potential negative impact of federal policies such as tariffs and mass layoffs, among other factors, when they recently downgraded their revenue projections for Fiscal Year 2026. Most states start FY 2026 on July 1.

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