The Quiet Work Before 2026: Budgets, Courts, and Election Rules - Weekly States' Roundup

Dec 27, 2025

a large white building with a flag on top of it — Photo by Michael Hart on Unsplash

It’s Friday, December 26, 2025, and time for your Democracy in the States: Weekly Roundup.

With the new year approaching, lawmakers and governors are starting the early work that shapes the legislative cycle, such as budget planning, writing bills, and setting priorities. This week’s news shows how financial forecasts, court decisions, and administrative actions are already setting the stage for issues that will matter before the 2026 midterms.

Budgets, taxes, and state resources are getting more attention

Early talks are raising expected deficits, possible tax changes, and debates over how states should handle financial challenges.

Budget gaps and spending pressures

WEST VIRGINIA: Nonprofits report continued impacts from a prolonged federal government shutdown, including funding disruptions and uncertainty about service delivery.
WASHINGTON: Gov. Bob Ferguson proposed using the state’s reserve fund and revenue from climate legislation to address a projected budget shortfall.
MARYLAND: A legislative fiscal committee discussed approximately $600 million in ongoing budget cuts to address a projected deficit.

Tax policy and pre-session proposals

INDIANA: Lawmakers are considering whether to align state tax policy with federal changes tied to Trump-era tax cuts.
NORTH DAKOTA: New legislation would eliminate property taxes for roughly 50,000 households.
RHODE ISLAND: Updated projections reduced the state’s anticipated FY27 deficit by more than half.
OKLAHOMA: Early-filed bills include proposals related to taxes, education funding, and immigration.
SOUTH DAKOTA: An opinion piece argues for targeted budget reductions rather than broad cuts.
NEBRASKA: A commentary urges lawmakers and communities to prepare for an intensive legislative session.
WISCONSIN: Senate leadership conveyed confidence that Republicans will retain their majority in 2026.

Courts continue to shape how policy is implemented

Lawsuits and court orders are changing how funding decisions and new laws are handled.

Funding disputes and judicial intervention

KENTUCKY: Gov. Andy Beshear and other Democratic officials secured a temporary court order allowing federal housing funds to remain in effect while litigation proceeds.
NEW MEXICO: A federal judge ordered the restoration of funding for school-based mental health services serving about 5,000 students.
MICHIGAN: School districts appealed a ruling related to funding for safety and mental health programs.
SOUTH DAKOTA: A state law protecting hospital drug discount programs continue in effect while a lawsuit proceeds.

Statutory changes and legal consequences

MONTANA: Legislative changes eliminated gun-free school zones, described as an unintended consequence of more extensive firearms legislation.

Decisions about how elections are run are shaping the 2026 cycle

State rules for voting and district maps are still changing through new laws and court cases.

Election rules and administration

KANSAS: A report examining proof-of-citizenship laws highlights Kansas’ experience with voter registration requirements.
OKLAHOMA: Oklahoma’s closed primary system is expected to affect participation in the 2026 elections.
WISCONSIN: A town agreed to make voting machines available for voters with disabilities after previously discontinuing their use.
MICHIGAN: A judge ruled that 37 mishandled ballots should not be counted.
MICHIGAN: Secretary of State Jocelyn Benson declined to rule on the constitutionality of party endorsement conventions.
MAINE: Conservative groups filed a legal challenge to a Maine campaign finance law.
NEW MEXICO: Advocacy groups and residents filed a motion to intervene in a federal lawsuit involving voter data.
NORTH DAKOTA: State officials approved a ballot petition on school meals for circulation.
OHIO: A commentary criticizes Gov. Mike DeWine’s actions related to recent election legislation.
NATIONAL: A report analyzes how Republican redistricting strategies may affect election results.

Redistricting and map litigation

INDIANA: The Senate Judiciary Committee chair was removed following internal disagreements over redistricting.
MISSOURI: A lawsuit alleges state officials are violating the constitution by advancing a gerrymandered map.
MARYLAND: Gov. Wes Moore described the state’s redistricting commission as transparent.
NATIONAL: As the Supreme Court limits its role in partisan gerrymandering cases, state courts are increasingly deciding map disputes.

A few key issues are expected to lead legislative debates

States are still dealing with immigration enforcement, housing shortages, and infrastructure needs.

Immigration enforcement and civil liberties

WISCONSIN: A man with no criminal record has been detained by ICE for several months.
COLORADO: A judge ordered the release on bond of a detained immigrant rights activist.
ARIZONA: Family members and lawmakers called for the release of a woman detained by ICE who they say has serious health issues.
LOUISIANA: Educators and advocates report that immigration enforcement actions are affecting students’ mental health.
LOUISIANA: A commentary urges local officials to protect residents following the arrival of federal immigration agents.
IDAHO: A study links agricultural labor shortages to higher food prices.

Housing, homelessness, and local strain

OKLAHOMA: Policymakers are considering tiny homes as housing options for teens aging out of foster care.
NEW MEXICO: A Santa Fe homeless shelter warned that waitlists could double without federal funding.
NEW HAMPSHIRE: Cities and towns are making incremental changes to zoning laws intended to increase housing supply.
NORTH CAROLINA: An interview discusses affordability challenges and access to housing.
NATIONAL: Homeless youth report unmet needs from schools and social services.

Energy, data centers, and infrastructure

GEORGIA: Regulators approved a major expansion of the power grid to serve data centers.
UTAH: The BLM opened additional land for energy development, including areas tied to greater sage-grouse habitat.
FLORIDA: A bill described as an “AI Bill of Rights” was filed in the Florida Senate.

Discussion about this post

Ready for more?