State reserves shrank in fiscal year 2025, for the first time since the Great Recession. According the National Association of State Budget Officers (NASBO) and analysis from the Pew Charitable Trusts’ Fiscal 50 project, which provides data and research on state fiscal conditions, the capacity of states’ rainy day funds—the number of days they could cover state operations—fell for the first time since the Great Recession of 2007-09. According to estimates at the end of fiscal 2025, the median state could run operations for 46.9 days, down from the fiscal 2024 record high of 53.2 days. And while the decrease represents a major shift, most states have more money in their rainy-day funds than they did before the pandemic.
Alabama Gov. Kay Ivey recently announced the establishment of the Technology Quality Assurance Board, which seeks to ensure the responsible, secure and effective deployment of emerging technologies across Alabama executive-branch agencies, including cybersecurity oversight guidelines for the use of AI within state agencies.
Minnesota Gov. Tim Walz announced a $10 million one-time emergency relief proposal aimed to assist the state’s small businesses that have been impacted by federal ICE operations throughout the state, especially in Minneapolis. The funding will be part of the Governor's 2026 legislative session package and would be administered through the Minnesota Department of Employment and Economic Development (DEED).