Good morning, it’s Monday, January 5, 2026. In today’s edition, lawmakers return under cloud of federal cuts; 9th Circuit strikes down California gun law; Walz to hold presser on his future:
Top Stories
Welcome back to session! Lawmakers in California and Ohio return today.
HEALTH CARE: New legislative sessions will kick off beginning this week under the shadow of expiring ObamaCare subsidies and Medicaid cuts, squeezing state budgets and forcing lawmakers to make cuts. Idaho lawmakers are preparing to debate a repeal of Medicaid expansion altogether. Other states are considering cuts to provider reimbursement rates and limits on services.
This year will also mark a pivotal year for rural hospitals and providers, which have struggled financially for years. The $50 billion Rural Health Transformation Program will help offset some losses. The Trump administration is touting the program as the largest investment in rural health care in decades. (Pluribus News)
MORE: South Carolina lawmakers have introduced a trio of bills aimed at aligning with federal Health and Human Services Secretary Robert F. Kennedy Jr.’s priorities. Bills would prohibit vaccine mandates for children under two, require the state health department to advertise vaccine mandate waivers and ban the addition of fluoride in public water systems. (Charleston City Paper)
GUN POLITICS: The 9th Circuit Court of Appeals has struck down a California law prohibiting the open carry of firearms in heavily populated counties. The state is likely to appeal the ruling to the full 9th Circuit. The law bars open carry in counties with more than 200,000 residents. (Associated Press)
PUBLIC SAFETY: Florida Rep. Danny Alvarez (R) has proposed legislation creating a statewide counterintelligence and counterterrorism unit within the Department of Law Enforcement. The bill calls for a 10-person leadership and organizational team, and to build out seven regional teams over time. (Florida Politics)
PUBLIC HEALTH: Pennsylvania Sen. Joe Picozzi (R) and Rep. Joe Hogan (R) are planning to introduce legislation offering $1,000 tax credits to offset the cost of fitness club memberships. The lawmakers said incentivizing people to go to the gym would reduce health insurance and Medicaid costs. (State Affairs)
ENVIRONMENT: A federal appeals court has blocked Hawaii from enforcing a new climate change tourism tax on cruise ship passengers. Cruise Lines International Association had challenged the tax in a lawsuit, alleging it violated the Constitution. Gov. Josh Green (D) signed the tax into law in May. (Associated Press)
MORE: Washington State is expected to launch a Zero-Emission Incentive Program in the spring, a $126 million initiative to push commercial fleet operators to transition their fleets to electric or hydrogen power. Already, nearly one in five new medium- and heavy-duty vehicles sold in the state run on zero emission technology. (Washington State Standard)
In Politics & Business
MINNESOTA: Gov. Tim Walz (D) will hold a press conference Monday amid speculation about his bid for a third term in office. Walz has faced criticism over fraud in state-run social service programs. Walz met with Sen. Amy Klobuchar (D) on Sunday to discuss his plans. (MPR News)
IOWA: Democrat Renee Hardman won a special election to fill a Des Moines-area state Senate seat last week, denying Republicans a two-thirds majority in the upper chamber. Hardman led by about 43 percentage points in the heavily Democratic district. She becomes the first Black woman elected to the Iowa Senate. (Associated Press)
NEBRASKA: The Nebraska legislature is awaiting new evidence as it debates whether to expel Sen. Dan McKeon. The Legislature’s Executive Board unanimously recommended expulsion “in light of a demonstrated pattern of behavior” after legislative staffers accused him of improper actions. (Nebraska Examiner)
WISCONSIN: Milwaukee County Judge Hannah Dugan has resigned her seat following her felony conviction for interfering with federal agents seeking to arrest an undocumented immigrant in her courtroom. Lawmakers had threatened to impeach Dugan if she didn’t resign. (State Affairs)
By The Numbers
96,594: The number of Colorado workers who have taken advantage of a state-run retirement savings plan, up 38% from the end of last year. The average account holder has saved $1,866 in the program’s first three years. (Colorado Sun)
94%: The share of newly registered voters in Nevada’s Clark County who are designated nonpartisan. Nevada automatically registers people to vote at the DMV, but those new voters don’t get the option to select a party preference until they are mailed a form by their home counties. (Associated Press)
Off The Wall
Indiana Sen. Andy Zay (R) has introduced a bill naming the breaded tenderloin as the official state sandwich. Zay cited Nick’s Kitchen, a restaurant in his district that has been serving the sandwich since 1908. (Post-Tribune)
Betty Boop and “Blondie” are now in the public domain, after reaching the end of their 95-year copyright maximum under federal law. Also in the public domain are a trio of fictional sleuths: Nancy Drew, Sam Spade and Agatha Christie’s Miss Marple. (Associated Press)
Quote of the Day
“We’re coming back to the basic hierarchy of needs here.”
— Vermont Rep. Theresa Wood (D), chair of the House Committee on Human Services, who said federal funding cuts will force lawmakers into tough decisions over food and heating assistance programs. (VT Digger)