States and policymakers are seeking a better understanding of the risks and vulnerabilities of extreme heat and its associated weather events; and, in doing so, are beginning to develop strategies for a hotter future, including anticipated fiscal impacts. Arizona, California, Delaware, New Jersey, New York, North Carolina and Wisconsin have all developed and begun implementing those heat action plans. Meanwhile, a recent report on the impact of extreme heat found that Mississippi is among the states with the largest heat-related economic losses. The United States loses an average of $100 billion annually from heat-induced declines in labor productivity.
Arizona lawmakers recently repealed the state’s Quality Jobs Incentive Program, also known as the Quality Jobs Tax Credit, in its new FY 2027 budget. The program was a long‑standing economic development tool that offered incentives to businesses creating high‑wage positions in the state. Critics of the change are concerned that removing the credit could weaken Arizona’s competitiveness for attracting corporate headquarters and high‑wage employers.
Hawaii Gov. Josh Green has signed a new measure that designates the state as an ocean cluster and establishes the Office of Marine Affairs, a new office, along with a governing board and a Marine Affairs Coordinator position within the Hawaii Technology Development Corporation, all of which will be dedicated to strengthening the state’s blue economy and improving coordination across ocean-related industries and policy areas.
New York Gov. Kathy Hochul recently announced the launch of the state’s new Semiconductor Manufacturing Workforce Training Incentive Program. The program, administered by Empire State Development, is designed to connect workforce training programs to careers in New York’s growing semiconductor industry sector, and supports eligible semiconductor manufacturers and manufacturing businesses by offsetting the costs of training employees for high-demand manufacturing careers, and assists those companies in building the skilled workforce needed to support continued industry growth across New York State.
Defense and national security concerns are receiving ramped up attention in two more states. North Carolina Gov. Josh Stein and the North Carolina Department of Commerce announced the launch of NC ALIGN (North Carolina Advisory Leaders for Innovation Growth in National Security). This new statewide advisory council builds upon recommendations first identified through North Carolina’s Advancing Defense Innovation initiative, and seeks to strengthen the state’s position in defense research, innovation, advanced manufacturing, and technology commercialization. Meanwhile, Massachusetts Gov. Maura Healey also released the Strategic Hub for Innovation, Exchange and Leadership in Defense (SHIELD)—a working group report that presents a statewide strategy to strengthen Massachusetts' defense innovation ecosystem, drive economic growth, create high-quality jobs, and reinforce national security. Developed over eight months with input from more than 100 convenings and a 40-member working group, the report outlines a roadmap to position Massachusetts as the nation's premier hub for defense innovation.
Tennessee Gov. Bill Lee and TNECD Commissioner Stuart C. McWhorter announced a $3 million commitment to attract NSF X‑Labs quantum teams to the state for research, commercialization, and business operations. The investment will help teams accelerate their path to market by tapping into Tennessee’s nationally recognized quantum ecosystem, including Oak Ridge National Laboratory, Tennessee Valley Authority, EPB (Electric Power Board Chattanooga), leading research universities, and the state’s growing innovation and manufacturing base. In addition, LaunchTN will offer additional support to assist X‑Labs teams in establishing roots in Tennessee. Any X‑Labs awardee that relocates to the state—and any company emerging from the program—will receive priority consideration for LaunchTN’s SBIR/STTR Matching Fund.