State and local policymakers nationwide are facing a one-two punch entering 2026. For one, last summer’s harmful Republican megabill paired enormous tax breaks for wealthy households and corporations with historically deep cuts that will take away people’s vital health care and food assistance, all while foisting considerable new costs and responsibilities onto states and localities. The resulting damage to people and communities is expected to be significant. And it comes at a time when many states are also facing intensifying budget pressures from the second threat: their own recent policy choices, like widespread income tax cuts, costly private school voucher programs, and a growing trend of property tax cuts and caps.
February 28, 2026
Center on Budget and Policy Priorities: Sound State Revenue Choices Essential to Counteract Harmful Policies and Build Forward
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