Economy

Govs warn state agencies to brace for budget cuts

Economic uncertainty is forcing states to create contingency plans.
Washington Gov. Bob Ferguson speaks on Saturday, June 28, 2025, in Seattle. (AP Photo/Lindsey Wasson)

Governors in at least five states have told agency leaders in recent weeks to rein in spending, an ominous sign of budget strain as governors begin to prepare spending plans for next fiscal year. 

Washington Gov. Bob Ferguson’s (D) budget director told agency leaders to limit requests for supplemental funding this year. Budget directors for Georgia Gov. Brian Kemp (R), Idaho Gov. Brad Little (R) and Indiana Gov. Mike Braun (R) told agency heads to prepare for spending cuts.

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