Washington, Aug. 24 -- As American states prepare for President Donald Trump's highly controversial economic package, known as the "One Big Beautiful Bill" to kick in, states are already facing a financial fallout amid cuts in federal funding.
The legislation, which combines large federal tax cuts with sweeping reductions in government spending, is already rippling through state budgets, creating uncertainties regarding the maintenance of essential services.
Unlike the federal government, states are legally required to balance their budgets. For much of the past decade, buoyant tax revenues and sizeable federal transfers - particularly through Biden-era pandemic relief and infrastructure measures - allowed state governments to post surplu...