From education reforms and budget negotiations to infrastructure upgrades and emerging AI initiatives, state governments across the country have been busy shaping public policy this week. In this edition of the Weekly State of the States, we highlight significant legislative and executive actions from all 50 states. Whether it’s Alabama’s shift in school accountability, California’s proposed cuts to homelessness funding, or Pennsylvania’s potential historic public transit investment, this roundup captures the key developments state leaders are tackling as the summer of 2025 unfolds.

Alabama

Alabama’s new CHOOSE Act school choice program leaves it up to parents to monitor how well independent schools, now receiving public funds, are serving their children. Alabama lawmakers’ push for more testing, more transparency, and a sharper focus on student outcomes will no longer apply to private schools under this new law. 

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Alaska

Governor Mike Dunleavy (R) vetoed Senate Bill 183, which would have required the executive branch to provide reports to the Legislature’s auditors “in the form or format requested” by legislators. The legislation is a response to changes the Alaska Department of Revenue has made under Dunleavy – namely, they stopped providing reports that highlight the work of Revenue auditors who deal with disputes over oil and gas taxes. 

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Arizona

The Arizona Senate approved a $17.6 billion bipartisan budget deal negotiated by Republican leaders and Democratic Governor Katie Hobbs (D), featuring higher spending than a competing House GOP proposal. However, the plan’s final passage is delayed until next week, as the House adjourned unexpectedly until Monday.

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Arkansas

Lawmakers passed several bills during this year’s legislative session to upgrade and improve the state’s water and wastewater systems. One of the measures is Act 578, which would provide $500 million for projects through 2043, but must be approved by voters in the 2026 general election before going into effect. 

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California

Governor Gavin Newsom (D) and the Legislature have proposed gutting the state’s main source of homelessness funding in the 2025-2026 budget. With the state facing an expected deficit of $12 billion this year, the typical budget for the Homeless Housing, Assistance and Prevention program has been cut from $1 billion last year to $0 in the next fiscal year. Lawmakers passed a placeholder Friday, but the budget still has to undergo additional negotiations before it becomes final. 

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Colorado

In response to Colorado’s housing affordability crisis, state lawmakers expanded protections for renters and passed a handful of laws aimed at making it easier to build new housing. For example, House Bill 1090 mandates that landlords advertise the full cost of a lease, including mandatory charges, up front to renters in order to stop the proliferation of hidden “junk” fees. 

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Connecticut

Last month, Connecticut lawmakers acted to close a potentially expensive loophole in workers’ compensation benefits, created by a state Supreme Court decision in March. Lawmakers inserted a provision in a supplementary budget measure that removes an administrative law judge’s discretion to award temporary partial incapacity benefits, effectively avoiding the projected cost increases associated with the ruling. 

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Delaware

The Delaware legislature has advanced two bills, one mandating a financial literacy course for high schoolers, and the other requiring schools to adopt a policy around cell phone use during school hours. The financial literacy bill passed the House unanimously and will now be taken up by the Senate. The cell phone use bill passed unanimously among members present in the Senate and needs to clear the House before heading to Governor Matt Meyer (D) for signature.

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Florida

Legislators finalized the state spending and tax relief plans for the next fiscal year last Friday. Senate Appropriations Committee Chairman Ed Hooper, R-Clearwater, said that the spending plan is about $500 million less than what Governor Ron DeSantis (R) proposed in his $115.6 billion budget for state fiscal year 2025-2026. 

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Georgia

The House Study Committee on the Costs and Effects of Smoking met for the first time on Thursday, hearing from the American Cancer Society, the American Heart Association, and the Campaign for Tobacco-Free Kids. Lawmakers learned about the financial impact of smoking, from rising health care costs to reduced productivity at work. The consensus among those in attendance was that raising the cigarette tax would both discourage smoking and help to pay for the health consequences of those who continue smoking. 

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Hawaii

Several bills are being lobbied to create a legal gambling framework for Hawaii. Senator Glenn Wakai has proposed a 20-year casino licensing program for sites within the New Aloha Stadium Entertainment District and the Hawaii Convention Center. The plan also seeks to establish a Hawaii Gaming Control Commission to supervise all gambling activities, and to create a state gaming fund that would help education, infrastructure, and social services. 

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Idaho

Despite the fact that legislation passed this year made the over-the-counter sale of Ivermectin legal in Idaho, there has been uncertainty on how to do so while navigating other regulations in the industry. So far, one pharmacy in northern Idaho, co-owned by a state lawmaker, is among the few currently selling ivermectin over-the-counter. 

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Illinois

Lawmakers have strengthened Illinois’ longstanding sexual abuse survivors’ law in an effort to ensure patients receive critical care after sexual assault.​​ The proposed bill would allow the state to fine hospitals that fail to take corrective actions after violating the 49-year-old Illinois law requiring hospitals to provide key services to all rape victims. It also expands access to health care vouchers, which cover medications, exams and testing for sexually transmitted infections after a sexual assault. 

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Indiana

Lawmakers have passed bills to attract small modular reactors, the next generation in nuclear power generation. Governor Mike Braun (R) and other state officials believe there is potential to make Indiana a manufacturing hub for the next-generation reactors. 

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Iowa

Governor Kim Reynolds (R) vetoed a bill last Wednesday that would have imposed new limits on the use of eminent domain for a proposed massive carbon pipeline project. House File 639 would have increased insurance requirements for liquid pipelines, limited carbon pipeline permits to one 25-year term and changed the definition of a common carrier for pipelines, making it more difficult for the projects to use eminent domain. 

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Kansas

Governor Laura Kelly (D) signed Kansas House Bill 2061 into law, elevating the criminal consequences of intentional damage and trespassing to broadband infrastructure and reinforcing broadband’s essential role in public safety. Under HB 2061, vandalism or intentional damage to broadband infrastructure can now be prosecuted as a felony, with enhanced penalties for when they impact emergency services and public safety. 

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Kentucky

Several new laws passed during the 2025 legislative session will bring changes for Kentucky schools in the upcoming academic year, ranging from phone use and reading help to financial literacy and sports eligibility. 

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Louisiana

Currently on Governor Jeff Landry (D)’s desk is a piece of legislation that would make Louisiana the first state to raise taxes to fund college sports since a federal judge approved a landmark settlement with the NCAA on Friday allowing schools to directly pay athletes for use of their name, image, and likeness (NIL). Athletic directors from Louisiana universities met with lawmakers earlier this year to finalize a plan that would relieve some of their financial pressures by dividing a share of the state’s sports betting tax revenue. 

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Maine

Legislation that would prevent the state from being able to seize tribal land for public use passed with bipartisan support in the state Legislature on Friday. However, initial votes show that lawmakers may not have enough support to override an expected veto from Governor Janet Mills (D).

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Massachusetts

House members of the Cannabis Policy Committee unanimously advanced legislation on Wednesday to downsize and restructure the Cannabis Control Commission and to address a handful of industry pressure points like retail license limits, restrictions on medical marijuana businesses, and the emergence of intoxicating hemp products. The bill will head to the House Ways and Means Committee next. 

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Michigan

Legislation was introduced by federal Michigan lawmakers on Tuesday to prevent future administrations from shutting down the international energy pipeline, Line 5. Lawmakers cite Line 5 as an essential mechanism that provides low-cost energy to Michigan residents. 

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Minnesota

Dozens of AI-related bills were proposed in the 2025 legislative session, none of which passed on their own. Only two mentions of AI were included in an omnibus that went to the governor for signature. The rest of the proposed legislation is now back on the drawing board to be reevaluated by legislators. 

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Mississippi

Governor Tate Reeves (R) announced on Thursday the launch of the Mississippi AI Talent Accelerator Program (MAI-TAP), an initiative centered around the development of artificial intelligence, machine learning, and related technologies in the state’s higher education institutions. $9.1 million in grants will be made through the program and given to seven schools, hoping to directly benefit Mississippi’s future workforce capability and economic competitiveness. 

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Missouri

Governor Mike Kehoe (R) has officially signed into law a $1.5 billion stadium funding plan aimed at convincing the Kansas City Chiefs and Royals to stay in Missouri. The bill was the product of a two-week special legislative session called by Kehoe last month, designed to counter an offer by Kansas to fund up to 70% of the construction costs for new stadiums for the Chiefs and Royals if they moved across the state line. 

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Montana

Senate Bill 188 would have mandated that corporate-owned utilities connect with shared solar energy projects and provide project subscribers with credit on their bills. On Friday, Governor Greg Gianforte (R) sent a letter to the Senate President and Speaker of the House detailing his reasons for vetoing SB 188. Gianforte was mostly concerned about the lack of clear statutory guidelines and guardrails that could impose unreasonable costs on ratepayers. 

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Nebraska

Governor Jim Pillen (R) endorsed the elimination of daylight savings clock changes and instead using permanent standard time. Nebraska lawmakers considered three proposals this spring related to the position of the clocks and remained one vote away from sending a bill to Pillen. When lawmakers return in 2026, they will probably reconsider whether to lock the clocks at daylight savings time. 

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Nevada

Governor Joe Lombardo (R) has signed 515 bills into law since the Legislature adjourned on June 2nd. Among the new laws are Assembly Bill 214, prohibiting teenagers from working between 11 p.m. and 6 a.m. before a school day, and Assembly Bill 176, prohibiting governmental entities from imposing regulations that burden access to reproductive healthcare. 

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New Hampshire

Both the Senate and House agreed to pass Senate Bill 287, adding new documentation requirements to absentee voting. If signed by Governor Kelly Ayotte (R), people seeking to vote absentee in New Hampshire would be required to either bring a photo ID into a clerk’s office, send in a photocopy of their ID, or send in a notarized signature to request their absentee ballot. 

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New Jersey

Legislators advanced legislation on Monday to establish a statewide task force focused on reducing chronic absenteeism in schools. The task force would study root causes of chronic absenteeism, examine the role of mental health and school climate, research best practices elsewhere, and recommend ways to promote family engagement. The Senate unanimously passed the bill earlier this month. 

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New Mexico

Governor Michelle Lujan Grisham (D) issued an executive order warning of wildfire risk and direct drought planning, given the record-breaking drought currently gripping New Mexico. Grisham did not formally declare a state of emergency or acknowledge the role of climate change or the oil and gas industry in her executive order addressing the drought. 

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New York

The State Legislature passed a limited omnibus prison reform bill last Thursday night in response to mounting scandals in the state’s prison system. Lawmakers compiled a 23-bill package to address what they described as systemic issues underlying the death of Robert Brooks, a man seen on body-worn cameras being beaten to death by corrections officers. Most of the provisions in the omnibus legislation center on increasing oversight and transparency in prisons. 

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North Carolina

Governor Josh Stein (D) signed a bundle of six bills into law on Friday. House Bill 506 dictates that a five-person board of appointees will oversee North Carolina’s $127 billion pension fund. Other measures signed include changes to law enforcement officers’ separation allowances, easier licensing transfers for social workers, changes to Death Benefits in state retirement plans, updates to adopted childrens’ birth certificates, and changes to the Department of Natural Resources. 

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Ohio

Ohio librarians and advocates opposed a funding plan, which has now been included in the Ohio Senate’s budget plan and could be finalized. The funding plan proposes that public libraries receive monthly payments from the General Revenue Fund, meaning libraries would be funded with a percentage of the tax revenue received by the state. The budget draft also includes a provision to move certain materials deemed unfit for children. 

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Oklahoma

On Tuesday, Governor Kevin Stitt (R) approved House Bill 1087 extending the teacher salary schedule, which grants annual incremental pay raises, up to 35 years. He also signed House Bill 1727, opening the Oklahoma’s Promise college scholarship to the children of classroom teachers with at least ten years of experience. 

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Oregon

State lawmakers passed a bill to further limit annual rent increases in manufactured home parks and for floating homes in marinas. If signed by Governor Tina Kotek (D), the bill would restrict yearly rent increases in parks and marinas with more than 30 spaces to 6%, while smaller parks and marinas would remain subject to Oregon’s existing rent control law to 7% plus inflation, capped at 10%. 

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Pennsylvania

The Pennsylvania House this week passed a major transit funding bill that would invest nearly $300 million annually in public transportation statewide without raising taxes. Backed by Gov. Josh Shapiro, the measure boosts the share of sales tax allocated to transit and is expected to generate $1.5 billion over five years to support systems like SEPTA and improve infrastructure across all 67 counties.

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Rhode Island

The Legislature is poised to pass legislation that would cap the annual percentage rate for short-term, small-dollar loans at 36% – a sharp change from the up-to-260% APR that deferred deposit providers can currently charge. This payday lending reform appears bound for passage in the General Assembly this year after more than a decade of failed attempts. 

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South Carolina

Hurricane Helene damaged an estimated 900 homes last September. To aid in recovery, Legislators approved $40 million in the upcoming budget to replenish one of South Carolina’s own disaster recovery funds, a portion of which the Office of Resilience will use to rebuild homes in impacted counties not eligible for federal dollars. 

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South Dakota

On July 1, more than 197 of the bills passed in the Legislature and signed by Governor Larry Rhoden (R) will go into effect. Of the 210 bills Rhoden signed, 13 were signed with an emergency clause and went into effect immediately after being signed. Only two bills were vetoed: HB 1132 establishing a child care assistance program, and HB 1169 which would have established a geographic distribution requirement for petition signatures. 

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Tennessee

Governor Bill Lee (R) signed 177 bills into law, which will go into effect in Tennessee starting July 1. Those laws covered a wide range of issues, from the criminal justice system to child care, internet safety, women’s health, and immigration reform. 

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Texas

Legislators enacted a slew of bills aimed at clearing red tape and regulations that either serve as obstacles to building new homes or worsen the state’s housing shortage. Key measures include Senate Bill 15 limiting minimum lot sizes to 3,000 square feet for new single-family homes in major cities, Senate Bill 840 which allows apartments and mixed-use developments in retail corridors, and House Bill 24 which raises the threshold for re-zoning objections, making it harder for neighbors to block new housing projects. 

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Utah

Members of the Utah Legislature’s Education Interim Committee heard on Wednesday that English language learners are more likely than their native English-speaking peers to perform poorly on statewide tests. A performance auditor with the Office of the Legislative Auditor General presented the audit to lawmakers and announced a new online dashboard that the public can use to examine performance gaps in K-12 schools for themselves. 

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Vermont

The House and Senate both passed a slimmed-down version of House Bill 474, which would make many changes to the state’s election procedures. Among other measures, the election bill would require more people to file campaign finance disclosure information and prohibit candidates who lose a primary election from running in the general election under another party, or as an independent. 

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Virginia

Six new laws signed by Governor Glenn Youngkin (R) will go into effect in Virginia on July 1. The new laws require adults to wear seat belts in the backseat of a car, require public schools to adopt anti-cyberbullying policies, protect the identity of lottery-winners, classify mail theft as a Class 6 felony, increase penalties for drivers who don’t stop for pedestrians who lawfully cross the street, and give people with disabilities equal rights to the free and full use of public playgrounds. 

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Washington

Governor Bob Ferguson (D) signed off on a number of bills passed in the first legislative session of his term. A series of new laws will go into effect on July 1, ranging from changes to gas taxes, labor laws, and immigration protections. 

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West Virginia

Governor Patrick Morrisey (R) has signed into law a bill that will expand the list of vehicles covered in the state’s move-over law. The new law adds maintenance vehicles to the protected list, and includes any stationary vehicle displaying any type of warning signal such as emergency flashers, hazard lights, flare, or reflective warning signs. 

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Wisconsin

Lawmakers in both chambers of the State Legislature approved a bill on Wednesday that formally classifies gig drivers for transit apps, such as Uber or DoorDash, as independent contractors rather than employees. The bill states that drivers for transit apps are not direct employees of those companies, exempting them from receiving worker’s compensation, minimum wage requirements, or being eligible for unemployment insurance. The legislation gives workers more freedom to set their own hours and drive for multiple companies without restrictions. 

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Wyoming

The Select Committee on Capital Financing and Investments proposed an increase in gambling taxes, including a plan to double the state’s sports betting tax rate from 10% to 20%, aligning it with the national average. The Committee also recommended raising the tax on skill-based gaming from 20% to 25% and on historic horse racing from 1.5% to 2.5%. 

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