At the start of each year, we sit down with NCSL CEO Tim Storey to discuss the most important issues facing state legislatures in the upcoming session. 

While the November election did not bring big changes for state legislatures—there was minimal turnover at both the legislative and executive levels—the big change in the federal government may mean significant changes in the state-federal relationship.

State budgets, which determine much of what states can do in the new year, are stable in most states and rainy day funds generally are in good shape, Storey said. But revenues are not on the rise and, as is true at the federal level, that means less willingness by legislatures to fund new programs.

A trend of rising health care costs will also affect states through their Medicaid programs and likely result in a strong focus on controlling costs. Storey also discussed other key areas of policy, including K-12 education, social media and kids and AI. One wild card for states is immigration and how they will respond if the new administration follows through on aggressive plans for deporting people in the country without documents. 

Resources

• Special Report: A Look at 2025’s Trending Legislative Topics, NCSL