Taxes

These states’ 2-year budgets must consider forthcoming federal cuts

Most states are still quantifying the Big Beautiful Bill’s impact on their social safety net.
Wyoming state Capitol in Cheyenne, Wyo. (Courtesy of the Wyoming Legislative Service Office)

Budget writers in Kentucky, Virginia and Wyoming are now planning for two years of state spending, from July 1, 2026 through June 30, 2028, making them the first state leaders to confront major One Big Beautiful Bill Act spending cuts that activate in October.

Preliminary discussions in the three states illustrate the federal law’s uneven impact and state leaders’ reluctance — or inability — to swiftly commit their own dollars to backfill lost federal dollars for food stamps and Medicaid.

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