President Trump will sign a comprehensive domestic policy measure on Friday, but the ink is not even dry yet. State governments are already preparing for the consequences as Washington places a large portion of the responsibility for food aid, health care, and other programs on them.
Illinois Democrat Governor JB Pritzker and lawmakers may convene a special session to address the new law, despite the fact that the newly approved state budget already provides $100 million to make up for federal funding gaps.
Governor Katie Hobbs of Arizona, another Democrat, has issued a warning that even her state’s $1.6 billion emergency reserve won’t be enough to weather the storm because, even if we reduce everything in the state, we won’t have the money to support all of these cuts.
State capitals were already struggling with a faltering economy and federal spending cuts imposed by Elon Musk’s Department of Government Efficiency prior to the bill’s final passage. Under the Affordable Care Act, they will now have to manage complicated new work requirements for food aid and Medicaid, restructure some state health insurance markets, and determine how much they can do to ensure that their citizens are fed and insured if they begin to lose federal support.
“Everything we’ve been working on is being undermined by what’s happening in Washington, D.C.,” said Democratic Governor Laura Kelly of Kansas.
Due to economic development, a record-breaking stock market that has produced more revenues than expected, and billions of dollars in COVID-19 relief funds, state budgets have been generally solid in recent years. Due in large part to the fact that employment gains in state and local government last month overshadowed flat job growth in the private sector, Thursday’s robust jobs report appeared more positive than anticipated.
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