Even with overwhelming opposition, Congress recently passed a disastrous budget that will decimate vital programs and raise costs for workers to benefit billionaires and corporations. States now carry the burden of a fragile democracy as our communities prepare for the devastation this reckless budget will cause.
State legislators have been, and will continue to be, the leaders that our communities deserve as the fascist takeover of our federal government continues. Many of you have fought back in the states for years, where the destructive policies of Project 2025 were first tested. We’ve done this together before and we will continue this difficult defensive work.
We know that true transformation demands more than resistance: it requires us to imagine and build towards a new future where everyone can thrive. When communities and legislators work as true partners, we build solutions that address problems and transform lives.
That’s why we’re kicking off a new series: The State Legislator’s Guide to the 2025 Federal Budget unpacks the full impact of the federal budget bill and equips state legislators with the resources and strategies they need to lead at this critical moment.
Get started by reviewing the State Power to Protect Immigrant Communities toolkit, a resource designed to help legislators develop proactive policies, strengthen worker protections, and expand access to critical services.
Throughout the year, we’ll be sharing bi-weekly updates to the guide, diving deeper into topics like revenue and taxes, public assistance programs, and more. Until then, we want to hear from you!
What questions do you have about the budget reconciliation bill? What ideas are you working on with colleagues and partners in your state that we should share with the SiX network?
If you missed our latest briefing, Funding our Futures: Tax Justice in the States, catch up on the recording and materials here. In the webinar, we look back at tax bills and lessons learned from 2025 legislative sessions, overview the possibility of special sessions in response to federal actions, and build for continued momentum into 2026 and beyond.
We’ll dig into key takeaways for state legislators over the coming weeks. In the meantime, check out some of the sources that our staff has been reading:
In July, Congress passed H.R. 1 (the Big Ugly Bill), a sweeping law that threatens to devastate health care for millions of Americans. The bill will hit the most vulnerable communities hardest. By cutting and capping federal Medicaid funding, the Big Ugly Bill puts enormous pressure on state budgets, forcing difficult choices about which programs and services to maintain.
This means:
🚨 $1.02 trillion cut from Medicaid and Children’s Health Insurance Program (CHIP) by 2034.
🚨 At least 10.5 million people projected to lose coverage.
🚨 States forced into impossible budget choices about which services to keep.
New federal Medicaid limits will leave millions uninsured and force states to raise revenue or cut services, often starting with home- and community-based care. These cuts will spare no one and will lead to hospital closures, layoffs, and less access to care. Medicaid, covering nearly half of all births and supporting many with chronic and mental health needs, faces a manufactured crisis risking over 16 million people.
State lawmakers have the power to act. By defending Medicaid and advancing policies that keep people covered, that strengthen provider networks, and ensure access to care, states can protect vulnerable populations and safeguard the future of healthcare. Protecting Medicaid is about more than budgets and numbers—it's about building a future where everyone can thrive.
As Medicaid is administered at the state level, many states designate their programs using alternative titles. Find the state-by-state “alternative names” for Medicaid here, or a ready-to-share reel here.
Check out our Medicaid Defense Toolkit, designed to provide legislators, advocates, and organizations with the resources needed to act swiftly and protect health coverage in 2025 special sessions and into the 2026 legislative sessions.
Join SiX’s Reproductive Freedom Leadership Council, our national initiative that supports legislators across the country in their commitment to ensuring healthcare remains accessible and equitable.
On October 1st, the U.S. federal government shut down and put approximately 750,000 federal employees on unpaid leave for as-yet an unknown amount of time—on the heels of a $4.5 trillion tax cut for the wealthy at the expense of lifesaving programs like Medicaid and food assistance.
As the 2025 shutdown stretches into a fourth week, states and communities are feeling the direct impacts of the partisan gridlock in Washington.
While many states are able to pull from rainy day funds to cover the initial gap in federal funding for vital programs, states have reported that they only have enough funds for a limited period of time, often a few weeks to a month. If the shutdown continues, critical programs that help people access food may have to be stopped.
States are also staring down billions of dollars in lost economic revenue from furloughed federal employees and in tax revenue, all with no guarantee of backpay once the shutdown ends.
With the uncertainty of this shutdown, states are worried they will be left “holding the bag” when lifesaving programs shutter, compounding an already challenging situation after months of mass layoffs and budget cuts from the Trump administration.
The U.S. Department of Agriculture (USDA) recently directed states to pause the issuance of Supplemental Nutrition Assistance Program (SNAP) benefits in November, and at least 25 states have already announced plans to pause payments next month. But the suffering is preventable: the administration already has the authority to draw from emergency contingency funds to protect nearly 42 million Americans from hunger.
Without federal or state action, Women, Infants, and Children (WIC) programs across the country are at risk of turning away millions of children and expecting parents from nutrition and breastfeeding support. States can provide stopgap funding that would ensure that WIC programs can continue to operate through the shutdown.
Farmers can’t access loans, disaster relief, and other help already promised by the USDA. Payments for conservation programs and critical information about livestock and commodity prices have ceased.
Public lands will remain open, but visitor centers and services are closed. Prolonged closure will harm tourism and local economies that depend on visitor spending. Wildfire prevention work is suspended, increasing fire risk in vulnerable areas.
Shutdowns also have a severe impact on Tribal communities due to the federal government’s trust obligations for providing essential services, including healthcare, education, and public safety to Tribes. This destabilizes and delays vital services, creating widespread and compounding crises.
Over 80% of federal workers live outside Washington, D.C., and the shutdown impacts every state and congressional district. Furloughs are causing immediate financial strain due to missed paychecks and they can lead to long-term economic hardship.
Small Business Administration (SBA) loans are suspended, halting approximately $100 million in daily capital access for businesses that rely on these funds for growth and operations. Federal contracts are frozen, jeopardizing contractors and leading to potential layoffs across various industries.
On Saturday, November 1, SNAP benefits were cut off due to the ongoing federal government shutdown, leaving 42 million Americans without necessary food assistance.
While judges have mandated that the USDA use emergency reserves by Monday, November 3, to develop a funding plan, benefits will still be significantly delayed as the technical process of loading EBT cards typically takes one to two weeks. States, communities, and neighbors continue stepping up to feed families during this uncertain transition period.
Here is a snapshot of what states are doing as of November 3rd, 2025:
With the ongoing shutdown, this is a big opportunity to message about the issues that our community cares about. Prior to the shutdown, Rural Democracy Initiative reported that only a third of Americans had heard much about a possible shutdown, leaving a huge opportunity to shape viewpoints.
When messaging on the shutdown, it is important to name our priorities and focus on building a federal budget that supports existing vital programs rather than starting from zero.
Remember to make clear what part of the opposition agenda you’re fighting to stop, and don’t focus on process opposition (like recissions). Instead, make the conversation about substantive priorities that are worth fighting for and that will support your state and community.
And when speaking about solutions and demands, frame them as a desired compromise to keep the government funded and our communities supported, not as just an opposition to Trump and conservatives.
Earlier this year, Congress passed H.R.1, “The Big Ugly Bill,” a sweeping law that cuts federal investments in climate and environmental protection while steering more resources to polluters and the fossil fuel industry. These changes will make energy less reliable and more expensive for families at a time when the climate crisis is accelerating.
State legislators now have a critical window to lead. They can protect their communities, safeguard clean-energy progress, and continue building the foundation for good, green, union jobs in every state.
State Innovation Exchange and We Build Progress have partnered to break down what this new law means on the ground and outline the steps state leaders can take before the end of the year to keep clean-energy investments flowing and frontline communities protected. Let’s dive in.
We want to hear from you! What questions do you have about the budget reconciliation bill? What strategies or ideas are you working on with colleagues and partners in your state that we should share with the SiX network?
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