Welcome to the August 1st, 2025 edition of DMGS State of the States! As we enter a new month, state legislatures and executive leaders across the country are making significant policy moves—from tax reform proposals and housing legislation to AI regulation and public health initiatives. This week’s roundup features key developments in nearly every state, including Arkansas’ ivermectin law, Pennsylvania’s ongoing transportation budget battle, and California’s potential Glock switch ban. Stay up to date on the latest state-level policy trends shaping the nation.

Alabama

The Alabama Legislature’s education budget and policy committees will begin meeting in late August to analyze options for adding an outcomes-based funding formula to four-year colleges’ annual appropriations. In order to drive improvement in institutions, some state funding may be tied to the universities’ performance, including possibly graduation and retention rates. 

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Alaska

Governor Mike Dunleavy (R) allowed three bills to become law this week without his signature. Two of the bills ease regulations for fishing boats and commercial fishing cooperatives, while the other new law lowers training requirements for new accountants if they can substitute experience for classroom time. 

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Arizona

After passing new groundwater legislation, Arizona lawmakers are now setting their sights on getting Colorado River negotiations finalized in 2026. Governor Katie Hobbs (D) is focusing on ensuring Arizona gets its fair share of Colorado River water, which is currently shared with California, Nevada, Colorado, New Mexico, Utah, and Wyoming. 

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Arkansas

Beginning August 5, 2025, a new state law will take effect, legalizing ivermectin for over-the-counter sale. However, the Arkansas State Board of Pharmacy said the availability of ivermectin will depend on the federal government, regardless of state law, since federal rules determine what is sold over-the-counter at pharmacies. 

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California

The California Assembly is considering legislation to ban gun shops from selling Glock-brand handguns that can become fully automatic if someone inserts a converter, commonly known as a Glock switch. Governor Gavin Newsom (D) has not said whether he will sign the bill. 

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Colorado

State lawmakers are expected to meet in a special session next month to review the impact of the new federal budget bill, specifically focusing on how it impacts health issues in Colorado. The special session will take place during the week of August 18. 

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Connecticut

A bipartisan group of Connecticut lawmakers, state officials and advocates is seeking new ways to provide student loan debt relief for over 500,000 state residents. The group has several goals, including establishing a debt data dashboard to track statewide trends related to student loan debt, creating a pilot Connecticut student loan default prevention program, and drafting a “borrower’s bill of rights.”

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Delaware

Speaker of the House Melissa Minor-Brown (D) is calling lawmakers into a special session on August 12 to discuss relief efforts for residents affected by the recent property reassessment process. 

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Florida

The 2025 state budget passed by the Florida legislature eliminated the state’s two disaster preparedness tax holidays that usually run in June at the beginning of the hurricane season, and from August to September, with each one lasting two weeks. Instead, this year’s budget eliminated the sales tax on certain items all year long rather than during the two-week periods. 

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Georgia

The Georgia Senate is considering legislation to eliminate the state income tax. A committee chaired by Senator Blake Tillery (R) will meet later this summer to investigate how other states have reduced tax rates. 

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Hawaii

A Maui County Council committee passed a bill this week to eliminate more than 7,000 short-term vacation rentals in response to housing shortages following last year’s Lahaina wildfire. The legislation aims to return properties to the long-term housing market and prioritize local residents displaced by the fire. 

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Idaho

The Idaho Legislature’s DOGE Task Force – inspired by the federal Department of Government Efficiency – met for the first time last Friday afternoon at the Idaho State Capitol. The task force is looking to do one of the first major state government reorganizations since the 1970s in order to reduce its size and improve efficiency. 

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Illinois

Governor JB Pritzker (D) signed two bills into law on Monday to improve gun safety. Senate Bill 8, known as the Safe Gun Storage Act, requires safe storage of guns to protect children, while House Bill 1373 expands firearm tracing by police. 

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Indiana

Many new laws went into effect in Indiana this July, including boosting tax cuts, allocating additional funding to education, and preserving the integrity of women’s sports at the collegiate level 

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Kansas

A provision slipped into the Kansas state budget eliminated all diversity, equity and inclusion (DEI) practices in all forms of state government, including universities. The provision goes into effect on Friday, August 1, 2025. 

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Kentucky

State lawmakers are exploring solutions to address Kentucky’s housing shortage. On Monday, the Kentucky Housing Task force met with stakeholders from the business and banking sectors to discuss proposals to solve the crisis. 

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Louisiana

A new state law, Act 24, will require a person driving less than the speed limit on Louisiana highways to stay in the furthest right lane. The new law will also increase traffic fines for people driving too slowly in the left lane. 

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Maine

The Maine Public Health Association will continue to work over the summer on a bill seeking to require medical cannabis to be tested. The bill would make medical cannabis regulated the same as recreational cannabis, ensuring it is tested for pesticides, mold, and metals. 

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Massachusetts

Lawmakers announced a deal to increase pay for attorneys who represent indigent defendants. The agreement boosts bar advocate pay by $20 per hour over two years and grants an additional $40 million to the Committee for Public Counsel Services, which lawmakers said will allow it to more than double its existing workforce. 

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Michigan

House Bill 4141, which would have prohibited cell phone use in schools during instructional hours, died on the House floor last Thursday. However, the Republican sponsor behind the bill said he is going back to the drawing board to rewrite the legislation.

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Minnesota

On July 31, the Minnesota Consumer Data Privacy Act will go into effect, creating new protections for the personal data of Minnesota residents. Under the law, Minnesotans will have a right to know what data a business has collected and a list of any third parties that their data has been sold to. 

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Mississippi

Lawmakers are holding a hearing in August to determine whether a bill allowing FDA trials of Ibogaine should be introduced in the Mississippi Legislature next session. The drug is said to be able to help people overcome addiction, PTSD, trauma, and even alleviate the symptoms of Parkinson’s. The public hearing will include testimony from patents, medical professionals, and veterans concerning the efficacy of Ibogaine. 

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Montana

As Montana leaders brainstorm ways to encourage artificial intelligence developments, lawmakers are looking into the state’s power generation capacity as part of the Energy and Technology Interim Committee. The committee met on Monday to determine priorities and to hear concerns about data centers and power load. 

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Nebraska

A constitutional amendment that seeks to legalize online sports betting in Nebraska is heading to the Senate floor. If constitutional amendment LR 20CA wins enough votes in the Senate, the issue of legalizing online sports betting in the state will be included on the November 2026 state ballot. 

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New Hampshire

Governor Kelly Ayotte (R) signed a bill into law this month to allow K-12 schools to hire faculty from New Hampshire’s colleges and universities to teach up to 20 hours a week of classes. The bill empowers community colleges to expand their high school dual enrollment partnerships and allows students to earn credit to save time and money in college. 

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New Jersey

Representative Dan Hutchinson has proposed Bill 15971, which would amend the state’s sports betting laws to prohibit licensed online sportsbooks from offering “micro bets,” or in-play proposition sports bets. 

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New Mexico

Lawmakers on the Science, Technology, and Telecommunications interim committee met on Tuesday to debate how, and even if, the state should regulate artificial intelligence (AI) technology. The committee addressed an array of concerns at the meeting, including hackers using AI tools, phishing emails used to obtain sensitive information, and AI-generated deepfakes or voice clones used to scam people. 

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New York

State lawmakers are preparing to introduce a resolution to amend the state constitution. The amendment would allow New York to redraw its house lines in the middle of the decade if other states move forward with redistricting. 

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North Carolina

North Carolina lawmakers drafted a bill to create an all-in-one disaster response agency, governed by bipartisan appointees. The agency, outlined under House Bill 907 released Monday, would be called the North Carolina Commission for Preparedness and Recovery. Its exact duties and structure could change as discussions about the bill continue. 

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North Dakota

North Dakota’s Legislative Task Force on Government Efficiency, similar to the federal government’s DOGE, is poised to begin work this week. The 10-member group is meeting for the first time on Wednesday, July 30, to begin looking for potential inefficiencies in state government. 

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Ohio

Governor Mike DeWine (R) vetoed a measure in the state budget requiring public libraries to limit access to books related to sexual orientation or gender identity. Republican lawmakers are now seeking to override that veto. 

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Oklahoma

During the interim, the Oklahoma House is holding 127 studies to help shape legislative priorities for their next session. The House plans to look at dark money in elections, abandoned medical marijuana facilities, water depletion, and the use of artificial intelligence in certain fields, among pressing topics. 

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Oregon

Governor Tina Kotek (D) signed five new laws on Monday that are meant to spur the construction of “middle housing” such as duplexes, triplexes and townhomes, modular homes, and to make it easier for developers to build quickly. 

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Pennsylvania

Pennsylvania’s budget is stalled over a standoff on transportation funding: Republicans want more money for roads and bridges, while Democrats push for additional funding for public transit. A bill passed in the House aims to fund both, but with tensions high and no Senate action yet, the state’s infrastructure future remains uncertain. 

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South Carolina

To tackle South Carolina’s persistent teacher shortage, state lawmakers passed a new law establishing a five-year pilot program that will allow public schools to hire non-certified teachers to fill in the gaps. The pilot program is set to begin this academic year. 

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South Dakota

Governor Larry Rhoden (R) announced a new public safety initiative in Sioux Falls that expands state trooper patrols and commits National Guard and prison resources to assisting federal immigration enforcement, including deportations. 

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Tennessee

A legislative task force designed to study federal regulations on school funding met for the first time on Tuesday to gauge the state’s reliance on federal grants and determine whether those grants come with too many restrictions. 

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Texas

Texas lawmakers will hold a hearing on Thursday to examine how local authorities responded to the deadly July 4 floods. The hearing will be the first chance for newly formed legislative committees on disaster preparedness and flooding to question local officials involved in active recovery operations. 

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Utah

Representative Tyler Clancy (R) is proposing a bill to prevent price discrimination based on a consumer’s personal data, after Delta Air Lines announced it would use artificial intelligence to set airfares. The bill aims to protect consumers by requiring consent for personalized pricing. 

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Vermont

A bill that passed unanimously through both state chambers this spring is now beginning to be implemented, and will erase up to $100 million in medical debt. S.27 will primarily aid low- and moderate-income Vermont residents and will prevent all medical debt in the future from affecting Vermonters’ credit scores, thereby improving access to healthcare across socioeconomic classes. 

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Washington

A new law in Washington now protects individuals from civil liability if they break into a vehicle to save someone in danger. The bill goes into effect next Monday. 

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West Virginia

House Bill 2354 was signed into law by Governor Patrick Morrisey (R) in March and is set to take effect this Friday, August 1. The new law prohibits the use of synthetic food dyes and preservatives in food served in West Virginia schools. 

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Wisconsin

Representative Sheila Stubbs (D-Madison) is advocating for the creation of a task force to examine the violence that African American women and girls face. The goal of the task force would be to create a report on the issue and develop policy solutions to prevent others from going missing and being murdered. 

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Wyoming

State lawmakers will consider drafting legislation this week to allow manufacturers of “advanced nuclear reactors” to store high-level radioactive waste at their Wyoming facilities. If the bill makes its way into law, this would be the second exception to the state’s decades-long ban on nuclear fuel waste storage in Wyoming. 

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