With the start of the new fiscal year, states across the country are finalizing budgets, implementing the laws passed in the 2025 legislative session, and adjusting priority frameworks for next year. This week featured major developments in state budgets, from New Jersey’s record-setting $58.8 billion plan to delayed negotiations in Michigan. In addition to fiscal developments, several states implemented laws on issues ranging from education and healthcare to cannabis regulation and tax policy.

Alabama

A temporary tax exemption on overtime pay expired on June 30 after lawmakers declined to extend it during the legislative session. House Bill 467 aimed to make the exemption permanent by removing a sunset clause, and although the proposal had bipartisan support and backing from policy groups, it failed to advance before the session ended. 

Learn more here

Alaska

Governor Mike Dunleavy (R) vetoed Senate Bill 39, citing access and enforcement challenges as barriers to implementation. The bill would have removed payday lenders – short-term, high-cost loans meant to be repaid on the borrower’s next payday – from a state exemption in lending laws, and placed a cap on interest rates and fees at an annual percentage rate of 36% for customers paying back these loans. 

Learn more here

Arizona

Governor Katie Hobbs (D) signed a bill to redirect what could be more than $1 billion in taxpayer dollars to improvements at the Arizona Diamondbacks’ home field. The bill shifts sales taxes paid on purchases at Chase Field from state, city, and county governments to the stadium to pay for improvements. Most of the income taxes paid by Diamondbacks players and those from visiting teams would also go to the upgrades. The bill shifts that tax money away from funding government services, including projects from road construction to operating K-12 schools. 

Learn more here

Arkansas

The Arkansas Attorney General rejected the Ballot Measure Rights Amendment for a second time on Tuesday because it failed to comply with Act 602 – a new law that prohibits ballot titles from being written above an eighth-grade reading level. The amendment would have changed Article 5, Section I of the state Constitution by designating the right of voters to make and repeal laws by petition as a “fundamental right.” 

Learn more here

California

Lawmakers approved changes to the California Environmental Quality Act, embedded in a last-minute budget bill that moved quickly through the Senate and the Assembly. The new law exempts nine types of projects from environmental reviews: child care centers, health clinics, food banks, farmworker housing, broadband, wildfire prevention, water infrastructure, public parks or trails, and, notably, advanced manufacturing. The changes in the law were forced by Governor Gavin Newsom (D), who said he would not approve the state’s $321 billion spending plan without them. 

Learn more here

Colorado

A slate of new state laws went into effect on Tuesday, July 1. House Bill 24-1130 creates new rules for how companies and employers that collect biometric data – face scans, finger prints, and voice recordings – protect the privacy of that information. Another piece of legislation, House Bill 24-1174, establishes new training requirements for gun owners who want to carry a concealed weapon. 

Learn more here

Connecticut

On Tuesday, Governor Ned Lamont (D) signed two climate-focused bills into law. House Bill 5004 set the state’s net-zero emissions target and added incentives for solar canopies, energy-efficient heating and cooling systems, green jobs, and sustainability-focused businesses. The other piece of legislation, Senate Bill 9, included several climate-resiliency measures and tougher restrictions on the use of rat poisons and neonicotinoids – a class of pesticides. 

Learn more here

Delaware

State officials announced on Tuesday that Delaware will begin recreational marijuana sales on August 1, 2025. The market’s launch was originally planned for April, but faced delays because the state could not secure FBI approval to conduct background checks on suppliers’ licenses. 

Learn more here

Florida

Governor Ron DeSantis (R) signed a bill on Monday that may help expand charter schools known as “schools of hope.” Senate Bill 2510, which is linked to the new state budget, changes the criteria for determining whether traditional public schools are persistently low-performing. In turn, this could increase the number of schools that receive the “persistently low-performing” designation, opening the door for more schools of hope. 

Learn more here

Georgia

Many new laws went into effect on Tuesday, July 1, impacting areas from education to public health, finance, and crime. House Bill 89 requires healthcare providers’ facilities and pharmacies to provide a Maternal Mortality Review Committee with clinical and psychiatric records to combat oversights. Another new law, Senate Bill 1, bans male students from participating in female sports competitions and female students from participating in male sports competitions. 

Learn more here

Hawaii

Governor Josh Green (D) signed several bills into law on Monday to further penalize those who kill or injure others with illegal fireworks. House Bill 1483 sets progressively harsher penalties depending on the scope of the offense, while House Bill 806 appropriated $1 million for the fiscal biennium to conduct covert fireworks sting operations. 

Learn more here

Idaho

Along with the start of the new fiscal year, several new laws went into effect on July 1, including a mandatory minimum fine for marijuana possession, a statewide ban against sleeping in public spaces, the ability to exceed the speed limit to make a pass on highway passing lanes, and higher pay for Idaho judges. 

Learn more here

Illinois

Governor JB Pritzker (D) signed a pair of health care-related bills on Tuesday. House Bill 1697, known as the Prescription Drug Affordability Act, imposes new restrictions on pharmacy benefit managers (PBMs) and establishes a grant program that will distribute $25 million a year in financial support for independent pharmacies. Additionally, House Bill 3019, known as the Healthcare Protection Expansion Act, requires insurance plans to cover a patient’s travel-related expenses whenever they have to travel long distances to receive in-network care. 

Learn more here

Indiana

Lawmakers approved more than a dozen new crimes and sentencing enhancements, set to take effect July 1. Among the changes are stricter sentences for fentanyl-related offenses, harsher penalties for resisting law enforcement, and criminalizing swatting – or falsely reporting an emergency. 

Learn more here

Iowa

Governor Kim Reynolds (R) signed an executive order directing Iowa universities to review their policies on antisemitic speech and actions, and review any antisemitic incidents that have taken place on campus and university responses. The first review must be completed by November, with a report due to Reynolds on December 1. Follow-up reviews will operate on the same timeline. 

Learn more here

Kansas

More than 100 new laws are going into effect this week in Kansas, affecting child care, education, and traffic laws, among other things. One new law, House Bill 2382, requires Kansas educators focused on sex education or human growth and development to include a fetal development presentation as part of their curriculum. 

Learn more here

Kentucky

A task force of Kentucky lawmakers met recently to review the Make America Healthy Again (MAHA) Commission Report. The legislators aim to use the findings in the report to improve the health of all Kentuckians when they are next in session. 

Learn more here

Louisiana

Governor Jeff Landry (R) signed House Bill 519, banning the use of cellphones and other wireless devices while operating a motor vehicle, unless used on hands-free systems. The law will go into effect on August 1, 2025, with violations resulting in a fine of up to $100 or up to $250 if the offense occurs in a school or highway construction zone. 

Learn more here

Maine

Maine lawmakers unanimously rejected a Democrat-led effort to ban dynamic pricing in restaurants and grocery stores throughout the state. The bill would have prevented the practice of adjusting product prices based on external factors, such as demand, weather, or consumer data. 

Learn more here

Massachusetts

Lawmakers submitted their budget plan for fiscal year 2026 to Governor Maura Healy (D) on Monday, June 30. The $61 billion plan abolishes mandatory tenant-paid broker’s fees, provides a 12% ($9 million) increase to Attorney General Campbell’s office, and overall relies more heavily on funds generated from the “millionaires tax.” 

Learn more here

Michigan

Michigan lawmakers missed the deadline on Tuesday for passing the state’s next budget, leaving schools and government agencies in limbo as a new fiscal year begins without a funding plan. Tensions between the Democratic-led Senate and Republican-controlled House have made it very difficult to decide how to allocate what is expected to be more than $84 billion in state spending. 

Learn more here

Minnesota

Several new laws went into effect this week in Minnesota, covering everything from the economy to education. Beginning Tuesday, July 1, ticketed events with at least 100 attendees will be required to provide access to free water, individuals 12 or older will need a watercraft operator’s permit to drive a motorboat or personal watercraft, and employers will be able to ask an employee for a doctor’s note if the employee has taken two or more days of earned time off, among other measures. 

Learn more here

Mississippi

A new state law raises Mississippi’s gasoline tax by 3 cents per gallon, but cuts the state grocery tax by 2%. The new rates will take effect on Tuesday, July 1, with proceeds set to go towards building and maintaining state roads. 

Learn more here

Missouri

Governor Mike Kehoe (R) signed into law a series of bills that make up the state’s budget for the upcoming fiscal year. The budget totals around $50.8 billion and includes money to fully fund the state’s K-12 public education foundation formula, and around $375 million to fully fund the state’s school transportation obligation. However, Kehoe vetoed over $3 million for teachers recruitment and retention state scholarships. 

Learn more here

Nevada

Nearly 200 new laws went into effect on Tuesday. Among the highlights are Senate Bill 347, setting procedures for law enforcement officers to temporarily confiscate a person’s firearms if the person is in a mental health crisis hold; Assembly bill 48, allowing a school board to transfer a perpetrator of bullying or other discrimination to another school in the district; and Senate Bill 293, allowing state universities to enter into name, image and likeness (NIL) contracts with student-athletes. 

Learn more here

New Hampshire

Governor Kelly Ayotte (R) signed the new state budget into law last Friday. A provision of the budget repeals a requirement that New Hampshire drivers must get their vehicles inspected, going into effect January 31, 2026. Emissions testing will also be done away with by the end of next September. 

Learn more here

New Jersey

On Monday, Governor Phil Murphy (D) signed into law the fiscal year 2026 budget, totaling around $58.8 billion – the largest in New Jersey’s history. Part of the new budget reallots $190 million from the state’s Clean Energy Fund to plug shortfalls in other areas. The funds meant to get clean energy projects like wind farms, solar arrays, and transportation electrification off the ground will now be going towards the New Jersey Transit budget and the general state budget. 

Learn more here

New Mexico

State Senator Joseph Cervantes (D- Las Cruces) met with other state lawmakers on the Legislature’s interim Courts and Criminal Justice Committee on Monday morning to discuss the proliferation of recreational marijuana shops across the state, as well as their hopes for a new band of cannabis officers tasked with enforcing recreational marijuana laws. 

Learn more here

New York

The State Assembly passed an energy bill to halt certain natural gas line expansions, and it now awaits Governor Kathy Hochul (D)’s signature. The bill is part of a broader effort to fully align New York’s gas utility system with its climate and affordability goals. 

Learn more here

North Carolina

Governor Josh Stein (D) signed House Bill 378 on Tuesday, shielding name, image, and likeness (NIL) contracts with public schools from public records. 

Learn more here

Ohio

The state operating budget passed last week makes changes to the way abortions will be reported in Ohio, and includes reductions to infant and maternal funding. According to the budget, data collection for the Ohio Department of Health’s annual and monthly abortion reports will now include the total number of Ohio residents versus non-Ohio residents who have “undergone an abortion and received post-abortion care.” 

Learn more here

Oklahoma

100 new laws went into effect on Tuesday, July 1, impacting areas from education to insurance, agriculture, and transportation. One of these new laws, the Protect Our Kids Act, closes loopholes for teachers under investigation for sexual misconduct by preventing teachers from leaving one school and going to another. 

Learn more here

Oregon

Senate Bill 243, banning rapid-fire activators such as bump stocks and Glock switches, passed the Senate on Friday and awaits Governor Tina Kotek’s (D) signature. If signed into law, the bill would also allow cities, counties, and school districts to bar people, including those with concealed gun licenses, from carrying their weapons into buildings where city council, county commission or school board meetings are held. 

Learn more here

Pennsylvania

The Pennsylvania Senate and House passed a bill allowing the Lottery to use more of its earnings on player payouts, boosting the number of games it sells with big-ticket prizes across the state. The bill may help bring in millions of additional dollars for programs benefiting senior citizens, such as low-cost prescriptions and rent rebates, given that Lottery profits fund these programs. 

Learn more here

Rhode Island

Rhode Island lawmakers sponsored a pair of bills aimed at protecting the public’s right to access the state’s shoreline, and Governor Dan McKee (D) has signed them into law. One of the new laws reduces the practice of limiting parking near Coastal Resources Management Council (CRMC) designated public rights of way by requiring individuals to submit a full parking plan, assess the impact under the Americans with Disabilities Act, and open a 30-day public comment period. 

Learn more here

South Carolina

South Carolina’s new budget for fiscal year 2026 took effect on July 1, with provisions for a permanent teacher certification process, a pay raise to teachers, and additional funding allocated for school resource officers in every public school. 

Learn more here

South Dakota

Around 200 bills took effect on July 1 in South Dakota. Notable new laws include House Bill 1052, banning the use of eminent domain by companies for the construction of carbon dioxide pipelines; House Bill 1259, segregating bathrooms in state-owned facilities by sex assigned at birth; and Senate Bill 164, requiring labels on political deepfakes within 90 days of an election. 

Learn more here

Tennessee

A new law passed by state lawmakers begins July 1, 2025, targeting minors who bully other students in schools. According to the new law, any minor found guilty of bullying or cyberbullying, following juvenile court proceedings, will lose their driving privileges for one year. 

Learn more here

Texas

On Sunday, Governor Greg Abbott (R) vetoed Senate Bill 3, which banned THC products in Texas. He vetoed the bill because of legal concerns, but called for a special session beginning July 21 for lawmakers to pass another bill to regulate the hemp industry in Texas. 

Learn more here

Vermont

Governor Phil Scott (R) signed the “education transformation” bill into law on July 1, addressing many of the state’s issues with its public education system including rising property taxes, declining test scores, and system inefficiency and inequity. The new law will switch Vermont to a different education funding method called a “foundation formula,” which gives the state the power to set statewide base spending instead of having taxpayers pass district budgets each year. 

Learn more here

Washington

Fee hikes for hunting and fishing licenses, workplace protections for immigrants, and increased requirements for gun dealers are among some of the new Washington state laws that went into effect on July 1. Dozens of other laws will go into effect July 27. 

Learn more here

West Virginia

According to state officials, West Virginia’s general revenue collections for fiscal year 2025 totaled $5.519 billion – $254.8 million above estimates. Despite the surplus, Governor Patrick Morrisey (R) warned of upcoming fiscal challenges for the state. 

Learn more here

Wisconsin

Lawmakers have reached an agreement with Governor Tony Evers (D) on the 2025-27 state budget with plans to invest hundreds of millions in the University of Wisconsin system, create new grant and payment programs for child care facilities, further boost investment in special education, and cut $1.3 billion in taxes. 

Learn more here

Wyoming

Nearly 100 laws were signed into law by Governor Mark Gordon (R), and many went into effect at the start of the new fiscal year on July 1. Among the new measures are election laws, new regulations on outdoor recreational activities, and several laws championed by the Wyoming Freedom Caucus. 

Learn more here

Latest News