Whatever the right mix of policies in which case, the bottom-line is clear. With ambitious yet thoughtful revenue choices, states hold real potential to do a lot of good: to mitigate harm for millions & help lay the foundation for a more prosperous future. www.cbpp.org/research/sta...
Lastly, many states have a chance to show leadership by reclaiming revenue they’re already losing from prior regressive choices, like tax cuts & vouchers. This has precedent, like Kansas’s bipartisan course correction from disastrous tax cuts last decade. www.kcur.org/government/2...
Next, policymakers can move to refocus the conversation on raising new revenues, especially from wealthy households and corporations, to counteract budget cuts & invest in the future—as several states have shown significant payoff from in recent years www.cbpp.org/research/sta...
States can then further protect revenue by rejecting calls for additional costly and regressive state policies currently on the table in many state capitals, like moves to fully eliminate income or property taxes in places such as Georgia & Missouri. www.csmonitor.com/Business/202...
First states can preserve revenue by moving quickly to delink from as many of the “conformity” impacts from federal tax cuts as possible, especially expansive new tax breaks for corporations & venture capitalists, as many are already doing. www.governing.com/finance/stat...
But it doesn’t have to be that way. In the wake of deeply harmful federal policies & other fiscal strain, states can instead position revenues - rather than harmful, broad-based spending cuts - at the center of their policy approach. States can take 4 needed paths:
Together, that combo puts people & communities nationwide at significant risk: there’s real potential for steep S&L cuts not just to health care & food assistance, but also to a broad set of public services including education, housing, child care, & infrastructure.
Meanwhile, many states are also facing intensifying pressure from a second threat: regressive policy choices they themselves recently adopted like widespread income tax cuts, costly private school voucher programs, & a growing trend of property tax cuts and caps.
Here’s the rundown: President Trump & his allies have advanced an agenda that spells extensive new costs for states, like strict limits on how states fund Medicaid, a major new spending mandate for food benefits, & expensive spillover costs from federal tax cuts for the wealthy.
New report: States & localities in '26 are facing a one-two punch—fallout from harmful federal actions on one hand & regressive state policies on the other. The path forward? Protecting & raising revenues to mitigate harm & build forward. Here’s how: www.cbpp.org/research/sta...
State & local policymakers in all states should prioritize protecting and raising revenues in 2026 and beyond to counteract the harmful Republican megabill. Here are some sound choices they can make: www.cbpp.org/research/sta...
Those are just a few, but they and others show how states can help light a brighter path: by choosing bold revenue policies that meet current fiscal challenges and support affordability for all families and communities. Read the full report here: www.cbpp.org/research/sta...
And in New Jersey, lawmakers passed a graduated mansion tax for property sales of $1m or more and a new 2.5% fee on corporate income over $10m, with new funding aimed at boosting affordable housing and preventing harmful service cuts to public transit.
In 2022, Massachusetts voters approved a new 4% surtax on income over $1 million. It’s since seriously exceeded original revenue projections, allowing policymakers to make durable investments like free community college, universal school meals, fare-free buses, and road & bridge repair.
DC raised revenue from people with income over $250K and enacted an increased property tax rate for property valued over $2.5m. They were then able to raise childcare worker pay, which has increased childcare access and quality and help lift educators out of poverty.
Colorado voters reduced deductions for households making over $300K, to generate about $200m/yr to fund universal school meals. Lawmakers also shored up their corporate tax system to help the state prepare for impending damage from federal health and SNAP cuts.
Several other states though took a different approach, by raising new revenues from the wealthy and closing loopholes to ensure corporations pay their fair share. That’s allowed them to protect and expand a wide range of positive public investments. Here are a few:
Many states in the past 5 yrs have recklessly cut taxes, often masking the damage w/ temporary budget surpluses. They’re now staring down the full impact & harm of those cuts, right at the time new costs from the Republican megabill are poised to hit as well.
NEW REPORT: States in 2026 can take inspiration from these 11 states + D.C., by tackling current challenges with bold revenue policies that support vital public investment & make life more affordable for working families. Here’s the rundown: www.cbpp.org/research/sta...
As state policymakers convene for leg season, they'll face cutting funding for vital public services or preserving & raising revenue to meet constituents’ needs. @wesleytharpe.bsky.social highlights states that have raised revenues & how they can be a roadmap for others: www.cbpp.org/research/sta...
Literally no one:
Trump Administration: here's a tax plan that "if enacted by every state, would represent the single largest legislated transfer of wealth from the working class to the rich in the nation’s history."
itep.org/trump-counci...
The massive tax giveaways of this summer's federal megabill are out of step with what the American people want and need. But states don't have to take that sitting down. Here's how they can fight back. www.governing.com/finance/stat...
New must-read from @propublica.org. More than half of states slashed income taxes in recent years, especially for the wealthy. Now that bill is coming due, right when harmful federal budget cuts are about to hit states too. Time to reverse course.
This summer's sweeping Republican reconciliation bill is poised to do a historic amount of harm. But it's also now handed state policymakers a historic opportunity of their own: championing revenues to mitigate harm for millions, show a better course, & advance a brighter future.
With a huge unfunded mandate for #SNAP food benefits one step closer to becoming law, don't lose sight of the painful tradeoffs states will be facing: Do they raise taxes? Cut state funding for other vital services? Slash the number of eligible low-income people receiving food assistance?
And for more details on how both Senate & House Republican plans would further shift costs & force hard choices in states generally, we’ve got you here: www.cbpp.org/blog/trackin...
These are just a few examples, but they’re not unique: under the Republican reconciliation plan, *all* states will face serious new costs & painful tradeoffs. More state-specific SNAP cost-shift examples are available here: www.cbpp.org/research/foo...
And #NewYork’s annual #SNAP benefits’ bill could swell to nearly $1.1 billion, or about 3X annual state spending on the Department of Environmental Conservation, which protects the state's natural resources and prevents and abates water and air pollution.
#NewJersey could be on the hook for an estimated $287M, or nearly their annual state spending on county colleges, which serve more than 168,000 students.
#Colorado, meanwhile, could owe about $194M, equal to two-thirds their Department of Public Safety’s annual budget, which funds the state highway patrol, Bureau of Investigation, and fire prevention and code enforcement.
