12/18/2025 | Press release | Distributed by Public on 12/18/2025 09:26
NCSL is tracking states budget shortfalls beginning with fiscal year 2026. The actions included in this database are tracked through news articles and enacted legislation. The database allows users to filter by state, type of budget cut, or type of revenue increase. This database is updated weekly.
| State | Shortfall Measure | Fiscal Year | Disposition | Effect | Description | Source | Link | Date |
| California | BCOther | 2026 | Enacted | Decrease | Closing a state prison | Cal Matters | Newsom Closed 4 Prisons and Trimmed Payroll | 11/21/2025 |
| California | Medicaid | 2026 | Enacted | Decrease | Pause on Medi-Cal enrollment for undocumented adults, added premiums for existing patients, and eliminated dental benefits | LAO | Medi-Cal Fiscal Outlook | 11/19/2025 |
| California | Medicaid | 2026 | Enacted | Decrease | Eliminating coverage for weight loss drugs | LAO | Enacted Budget Summary 2026 Health and Human Services | 5/14/2025 |
| California | Medicaid | 2026 | Enacted | Decrease | Delaying repayment of a loan for state Medicare providers | Associated Press | Here is how California Gov. Gavin Newsom plans to address a $12 billion budget shortfall | 5/14/2025 |
| California | ReserveFunds | 2026 | Enacted | Increase | Uses $7 billion from the state rainy-day fund | California State Budget | 2025-2026 California State Budget Summary | 6/25/2025 |
| California | EDHigherEd | 2026 | Enacted | Decrease | Defers funding for state university systems, requiring schools to take zero-interest loans from the general fund | California State Budget | 2025-2026 California State Budget Summary: Higher Education | |
| Colorado | BCOther | 2026 | Enacted | Decrease | Cut alternative transport funding tied to a bill | Colorado Politics | Colorado lawmakers finalize budget proposal. Here's what they cut to close $1.2B gap - and what they didn't. | 3/28/2025 |
| Colorado | BCOther | 2026 | Enacted | Decrease | General transportation funds cut | Colorado Sun | Colorado lawmakers finalize budget proposal. Here's what they cut to close $1.2B gap - and what they didn't. | 3/28/2025 |
| Colorado | BCOther | 2026 | Enacted | Decrease | Cut the Revitalizing Main Streets program | Colorado Sun | Colorado lawmakers finalize budget proposal. Here's what they cut to close $1.2B gap - and what they didn't. | 3/28/2025 |
| Colorado | BCOther | 2026 | Enacted | Decrease | Cut to a judicial department ombudsman program | Colorado Sun | Colorado lawmakers finalize budget proposal. Here's what they cut to close $1.2B gap - and what they didn't. | 3/28/2025 |
| Colorado | SEMisc | 2026 | Enacted | Decrease | Reducing the workforce by not filling vacancies | Colorado Politics | Colorado's unsustainable budget: A path to future cuts | News | coloradopolitics.com | 3/28/2025 |
| Colorado | SEMisc | 2026 | Enacted | Decrease | State hiring freeze | Sky-Hi News | Gov. Polis Extends Executive Order to Address Budget Shortfall | 11/30/2025 |
| Colorado | AcrossTheBoard | 2026 | Enacted | Decrease | Suspended specific programs implemented by the Department of Corrections (DOC), Department of Health Care Policy & Financing (HCPF), Department of Higher Education (CDHE), Department of Human Services (CDHS), Office of Information Technology (OIT), Department of Local Affairs (DOLA), Department of Public Health & Environment (CDPHE), and Department of Revenue (DOR). | State of Colorado | Executive Order | 11/30/2025 |
| Illinois | MotorFuel | 2026 | Enacted | Increase | Raising tax rates on gasoline, gasohol, and diesel fuel | My Journal Courier | Illinois gas, tobacco, sports betting taxes rising in July | 6/7/2025 |
| Illinois | ETTobacco | 2026 | Enacted | Increase | Raising the tax on tobacco products by 9 percentage points | My Journal Courier | Illinois gas, tobacco, sports betting taxes rising in July | 6/7/2025 |
| Indiana | ETTobacco | 2026 | Enacted | Increase | Tax increase on cigarettes | Fox 59 | Indiana faces $2.4 billion budget shortfall according to updated revenue forecast | Fox 59 | 4/17/2025 |
| Indiana | HealthOther | 2026 | Enacted | Decrease | Local public health funding cuts | CBPP | Roundup: State Budgets Increasingly Strained as House, Senate Republican Plans Would Impose Major Costs | Center on Budget and Policy Priorities | 6/24/2025 |
| Indiana | EDHigherEd | 2026 | Enacted | Decrease | Cuts to higher education funding | CBPP | Roundup: State Budgets Increasingly Strained as House, Senate Republican Plans Would Impose Major Costs | Center on Budget and Policy Priorities | 6/24/2025 |
| Indiana | ReserveFunds | 2026 | Enacted | Increase | Using budget reserves | CBPP | Roundup: State Budgets Increasingly Strained as House, Senate Republican Plans Would Impose Major Costs | Center on Budget and Policy Priorities | 6/24/2025 |
| Maryland | HealthOther | 2026 | Enacted | Decrease | Cuts increase to local health grants | Baltimore Sun | Maryland budget cuts: Here are the agencies, programs impacted | 3/26/2025 |
| Maryland | MTOther | 2026 | Enacted | Decrease | Film production tax credit cap lowered | Baltimore Sun | Maryland budget cuts: Here are the agencies, programs impacted | 3/26/2025 |
| Maryland | OtherRev | 2026 | Enacted | Decrease | Cut grant program for West Baltimore economic development | Baltimore Sun | Maryland budget cuts: Here are the agencies, programs impacted | 3/26/2025 |
| Maryland | SELayoffs | 2026 | Enacted | Decrease | Abolishing 212 state positions | Baltimore Sun | Maryland budget cuts: Here are the agencies, programs impacted | 3/26/2025 |
| Maryland | ETMarijuana | 2026 | Enacted | Increase | Tax increase on recreational cannabis | CBPP | Roundup: State Budgets Increasingly Strained as House, Senate Republican Plans Would Impose Major Costs | Center on Budget and Policy Priorities | 6/24/2025 |
| Maryland | MTGambling | 2026 | Enacted | Increase | Tax increase on sports betting | CBPP | Roundup: State Budgets Increasingly Strained as House, Senate Republican Plans Would Impose Major Costs | Center on Budget and Policy Priorities | 6/24/2025 |
| Maryland | MTOther | 2026 | Enacted | Increase | New capital gains tax | CBPP | Roundup: State Budgets Increasingly Strained as House, Senate Republican Plans Would Impose Major Costs | Center on Budget and Policy Priorities | 6/24/2025 |
| Massachusetts | HumServ | 2026 | Enacted | Decrease | Further cut to the Volunteer Income Tax Assistance program | Massachusetts Budget | Massachusetts Budget | 2/5/2025 |
| Massachusetts | HumServ | 2026 | Enacted | Decrease | Decrease in funding to the state emergency family shelter system | Massachusetts Budget | Massachusetts Budget | 2/5/2025 |
| New Hampshire | SELayoffs | 2026 | Enacted | Decrease |
Eliminates positions in agencies like the Department of Natural and Cultural Resources, Department of Administrative Services, Office of the Child Advocate, Department of Corrections, Department of Information Technology |
WMUR9 | New Hampshire Agencies Cut Positions as New State Budget Takes Effect | 4/10/2025 |
| New Hampshire | SEMisc | 2026 | Enacted | Decrease | State hiring freeze with specific exceptions | NHPR | Gov. Ayotte announces state hiring freeze, citing budget deficit | New Hampshire Public Radio | 1/22/2025 |
| New Jersey | GenSalesTax | 2026 | Enacted | Increase | Increased fees on property sales over $2 million | New Jersey Monitor | New Jersey lawmakers pass $58.8 billion budget • New Jersey Monitor | 6/30/2025 |
| New Jersey | MTGambling | 2026 | Enacted | Increase | Increased fees on online gaming wins | New Jersey Monitor | New Jersey lawmakers pass $58.8 billion budget • New Jersey Monitor | 6/30/2025 |
| New Jersey | ETTobacco | 2026 | Enacted | Increase | Increased fees on vape fluid | New Jersey Monitor | New Jersey lawmakers pass $58.8 billion budget • New Jersey Monitor | 6/30/2025 |