As spring unfolds across the United States, state legislatures are buzzing with activity, tackling a diverse array of issues from public safety and economic innovation to energy policy and health care affordability. 

This week’s DMGS State of the States brings you the latest legislative highlights from coast to coast. From Alabama’s crackdown on “Glock switches” to Wyoming’s robust wildfire recovery funding, and from New Jersey’s push for sustainable AI data centers to New York’s ongoing battle over utility bill relief, lawmakers are shaping policies that reflect both local priorities and broader national trends. Dive into this week’s edition to see how states are navigating the challenges and opportunities of 2025.

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Alabama

Alabama Governor Kay Ivey (R) signed a bill banning “Glock switches,” devices that turn semi-automatics into fully automatics. Possession or sale of these devices is now a Class C felony, punishable by up to 10 years in prison and a $15,000 fine. 

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Arizona

Arizona Republicans have advanced bills to make cryptocurrency “legal tender” and establish a digital assets reserve fund. The bills allow state funds to invest up to 10% in digital assets annually, aiming to embrace cryptocurrency despite concerns about its volatility.

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Arkansas

Arkansas lawmakers have passed legislation designed to mitigate electricity rate increases by allowing utility companies to recover construction costs for new power plants during the building phase. Senate Bill 307 aims to ease price spikes and provide more oversight, while also attracting economic development projects like data centers to the state. 

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Connecticut

Connecticut lawmakers are debating a bill that would give police more discretion to pursue suspects involved in felony crimes. The proposal aims to allow officers to chase suspects in cases beyond violent crimes, like non-violent felonies, but has sparked concerns from Democrats about safety risks and the complexity of cross-jurisdiction pursuits. Some Republicans argue the bill is needed to address increasing car thefts and crime.

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Maryland

On Maryland’s Crossover Day, Governor Wes Moore (D) announced that two controversial tax proposals— a broad business-to-business (B2B) tax and a sugary drinks tax— would not be included in the state’s final budget. The B2B tax, which faced strong opposition, would have generated $1 billion in revenue, while the sugary drink tax was intended to fund free school meals and childcare subsidies. However, some form of sales tax on services is still under discussion as negotiations continue.

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Michigan

Michigan lawmakers are divided on tax cuts, with the Republican-led House passing a bill to reduce the state’s flat income tax from 4.25% to 4.05%, while Senate Democrats have proposed targeted relief, including expanded child care subsidies and tax credits for low-income families. 

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Missouri

Missouri House Bill 939, passed in early March, seeks to prevent local governments from enforcing green building standards that increase construction costs, citing the impact on affordability. 

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New Jersey

A new bill in New Jersey, which passed the state Senate Environment and Energy Committee, aims to require AI data centers to source their energy from clean, renewable sources and submit an energy usage plan to the Board of Public Utilities. This legislation seeks to ensure that AI growth doesn’t burden the state’s energy grid or ratepayers. 

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New York

New Yorkers rallied at the state Capitol to support the NY HEAT Act, which aims to reduce the financial burden of rising utility bills by capping rates and preventing future hikes. The Senate has included the bill in its budget proposal for the third year, but the Assembly has yet to act. The legislation seeks to modernize state laws, reduce fossil fuel dependency, and offer cleaner, cheaper heating alternatives. 

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Ohio

Ohio small business owners are urging lawmakers to address the growing health insurance affordability crisis. According to the National Federation of Independent Business (NFIB), health insurance premiums for small businesses have surged by over 120% in the last two decades, leading to fewer businesses offering coverage. Proposed legislation, such as House Bill 133 and Senate Bill 129, aims to provide tax credits to employers with fewer than 50 employees to help offset these rising costs.

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Pennsylvania

A bipartisan paid family leave bill, House Bill 200, has advanced in the Pennsylvania House after passing the Labor & Industry Committee with a 14-12 vote. The proposed legislation would offer eligible workers between 12 and 20 weeks of paid leave, funded through payroll contributions, for various family and medical reasons. 

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West Virginia

West Virginia is set to become one of the first states to ban synthetic food dyes in school meals under House Bill 2354, which takes effect on August 1. The bill prohibits dyes like Red No. 3, Yellow No. 5, and Blue No. 1 in public school meals, with exemptions for school fundraisers. If signed into law, the bill will also label foods containing certain harmful additives as “adulterated” by 2028, imposing penalties on manufacturers.

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Wyoming

Wyoming lawmakers have approved funding to support wildfire recovery efforts, including $49 million in grants and up to $25 million in loans. These funds will help landowners restore habitats, prevent invasive species, and rebuild damaged properties. The grants are aimed at addressing the impacts of the 2024 wildfire season, which burned 850,000 acres, with the majority on state and private lands. Governor Mark Gordon (R) emphasized the importance of grants for efficient recovery, while lawmakers balanced the funding approach with loans for small businesses affected by natural disasters.

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