State legislatures were active this week, with governors signing key bills, lawmakers wrapping up their sessions, and budget deadlines fast approaching. From Florida’s recognition of gold and silver as legal tender to Hawaii’s new “green fee” on tourists, states tackled a wide array of issues. Some legislatures have achieved major policy wins, while others are racing to finalize budgets or prepare for special sessions. Here’s a look at what happened across the country this week.
Alabama
Governor Kay Ivey (R) recently signed House Bill 445, which imposes new restrictions on consumable hemp products. The law limits THC content to 10 milligrams per serving and restricts sales to certain venues, excluding convenience stores. It also establishes a licensing system under the Alcoholic Beverage Control Board. These measures introduce significant limitations, but also legitimize the sale of consumable hemp products under strict regulatory oversight, providing a clearer framework for the industry.
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Alaska
The Alaska Legislature adjourned on Tuesday, with Kodiak’s legislators adamantly pushing forward bills to bolster local fisheries and address industry challenges. Measures included streamlining commercial boat permitting processes to eliminate duplicative fees, and allowing funds from registered vessel sales to be directed towards local cleanup initiatives.
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Arizona
Arizona has less than 40 days remaining to complete a state budget before a government shutdown. Delays to the budget negotiation stem from uncertainties over state tax revenue and debates surrounding the extension of Proposition 123, which funds teacher salaries. Arizona lawmakers and Governor Katie Hobbs (D) are finally communicating on the matter, although on a rushed timeframe.
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Arkansas
Last month, Governor Sarah Huckabee Sanders (R) signed a new law banning Pharmacy Benefit Managers (PBMs) from owning or operating pharmacies starting in 2026. The Act essentially prohibits vertical integration between PBMs and pharmacies.
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California
The California State Assembly approved Assembly Bill 527, which will remove bureaucratic barriers for exploratory geothermal energy projects that meet strict environmental standards. The bill will streamline and accelerate the development of geothermal energy by exempting qualifying projects from the California Environmental Quality Act in an effort to expedite the state’s clean energy transition.
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Colorado
Colorado schools are funded on a per-pupil basis, making the recent decline in enrollment particularly problematic despite the fact that it stems from declining birth rates and alternative schooling options. To combat the issue of underfunded schools, Governor Jared Polis (D) signed House Bill 25-1320 into law, providing an additional $256 million to schools next year.
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Connecticut
House Bill 5002 narrowly passed 84-67 in the Connecticut House of Representatives on May 27. Likely the most consequential housing bill the Connecticut legislature has considered in years, HB 5002 tackles issues including zoning, transit-oriented development, parking, homelessness, and fair rent commissions.
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Delaware
House Bill 119, known as the Freedom to Read Act, passed the Delaware House with some bipartisan support. If signed into law, the bill will ensure books are not removed from public schools and school libraries for identity-based, ideological, or religious reasons.
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Florida
Governor Ron DeSantis (R) has signed House Bill 999, recognizing gold and silver as legal tender in Florida. Additionally, if ratified by the state legislature, these forms of currency would also be free from sales tax and would take effect on July 1, 2026.
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Georgia
Bureaucratic hurdles in Georgia have led to job shortages in vital sectors such as nursing, contracting and teaching. House Bill 579, set to go into effect on July 1, will remove many of these hurdles and allow individuals to enter the workforce faster. The legislation bypasses lengthy board review processes for issuing, renewing, and reinstating licenses. It also provides temporary licenses for qualified applicants and extends grace periods for expired licenses.
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Hawaii
Hawaii Governor Josh Green (D) has signed the country’s first-ever lodging tax, or “green fee,” into law. Starting January 1, 2026, visitors staying at Hawaii hotels and short-term rentals will have to pay an additional 0.75% to the existing transient accommodations tax. The fee is expected to raise around $100 million per year, which will be used for projects from combating erosion and invasive species to upgrading technology and fortifying firebreaks.
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Idaho
Governor Brad Little (R) and Lieutenant Governor Scott Bedke issued statements in support of a new $30 million water infrastructure funding plan to support farmers, approved by the Idaho Water Resource Board (IWRB) last Friday. The IWRB received the funds for this project from House Bill 445, dictating that in Fiscal Year 2026, $30 million must be spent on water projects in eastern Idaho and the Magic Valley under the new Eastern Snake Plain Aquifer Water Sustainability Projects Program.
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Illinois
The Senate passed House Bill 2517, which would require maternal health providers to complete one hour of implicit bias training before renewing their state licenses, going into effect July 2026. The bill aims to address racial disparities in maternal health outcomes, particularly the high mortality rates among Black women.
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Iowa
After passing in both the Iowa Senate and House of Representatives, S.F. 657 is now under consideration by Governor Kim Reynolds (R). The bill creates a tax credit to boost sustainable aviation fuel (SAF) production using in-state feedstocks like ethanol, corn oil, and soybean oil. If signed into law, the bill would offer a tax credit of 25-cent-per-gallon of SAF produced within the state if the SAF achieves at least a 50% reduction in lifecycle greenhouse gas emissions when compared to fossil jet fuel. The credit would be in place from 2026 to 2035, and would be capped at $1 per eligible business per year.
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Kentucky
Kentucky legislative leaders have announced five new task forces that will meet ahead of the 2026 legislative session to discuss possible policy proposals. The interim legislative task forces are Make America Healthy Again, Disaster Prevention and Resiliency, Artificial Intelligence, Housing, and Air Mobility and Aviation Economic Development. These task forces are expected to lay the groundwork for a more efficient and productive debate once the next legislative session commences.
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Louisiana
Louisians lawmakers approved a statewide ban on kratom. Senate Bill 154 is on its way to Governor Jeff Landry (R)’s desk and, if signed, will impose a $100 fine for possessing under 20 grams of kratom, while possession over 20 grams can lead to up to six months in jail or a $1,000 fine. Additionally, the bill makes distributing kratom punishable with 1 to 5 years in prison or a fine up to $50,000.
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Maine
Maine lawmakers approved a bill allowing prescription labels for abortion medications like mifepristone and misoprostol to list the prescribing facility instead of the provider’s name, aiming to protect clinicians from harassment or threats. The measure, awaiting Governor Janet Mills’ (D) signature, builds on Maine’s existing shield laws and aligns with similar efforts in New York and Washington.
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Maryland
Governor Wes Moore (D) vetoed a bill that would have established a commission to study reparations. More specifically, the commission would study federal, state, and local policies from 1877 until 1965, and both the post-Reconstruction and Jim Crow eras that created economic disparities.
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Massachusetts
Massachusetts lawmakers have reintroduced a bill to ban weight-based discrimination in the workplace. If passed, the legislation would make it illegal for employers to fire, refuse to hire, or otherwise discriminate against workers based on their weight.
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Michigan
A new package of bills in Michigan would authorize police officers to conduct roadside saliva drug tests on drivers suspected of impairment. The proposed legislation would expand existing pilot programs into a statewide practice, allowing any officer to administer the test.
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Minnesota
Minnesota lawmakers are weighing a proposal to extend existing sales tax exemptions on data center equipment purchases from expiring in 2042 to now expire in 2102. The exemption is projected to cost Minnesota over $100 million annually, with some lawmakers questioning whether such subsidies are appropriate in the midst of a growing budget deficit.
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Mississippi
Governor Tate Reeves (R) called a special session to start May 29th for lawmakers to pass a $7.135 billion state budget after failing to do so during the regular session. The plan keeps most agency funding the same as the previous fiscal year, with small increases for employee benefits.
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Missouri
Republican lawmakers advanced a ballot measure to overturn Missouri’s 2024 abortion rights amendment. The new proposal limits abortion to cases of rape, incest, or medical emergency and adds a ban on gender-affirming care for minors. Voters may decide on it in 2026.
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Montana
Governor Greg Gianforte (R) signed a revised version of Senate Bill 147, extending the Montana Indian Child Welfare Act through 2029. Originally aimed at strengthening cultural protections for Native children in foster care, the bill was significantly weakened due to cost concerns.
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Nebraska
Lawmakers advanced Legislative Bill 316 32-15 after overcoming a filibuster. If signed into law, LB 316 will ban THC in processed hemp (namely Delta-8 and synthetic hemp) and restrict raw hemp to concentrations under 0.3% THC. It also includes a “consumer safe harbor period” through the end of 2025 to give consumers time to discard any hemp deemed illegal under this new definition in LB 316.
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Nevada
Nevada lawmakers are considering a bill to increase penalties for fatal DUI crashes, namely through the imposition of harsher sentences. Supporters argue that stricter penalties will deter impaired driving and enhance public safety while critics express concerns about potential impacts on prison populations. The bill is currently under review in the state legislature.
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New Hampshire
Lawmakers passed a bill shielding gun manufacturers from most lawsuits over optional features on their weapons.
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New Jersey
State Senator Vin Gopal introduced a bill to allow casino games at Monmouth Park and Meadowlands racetracks, expanding gambling beyond Atlantic City. The proposal outlines a tax plan redirecting revenue toward property tax relief, education, pensions, and Atlantic City tourism. However, potential North Jersey casinos could face steep competition from upcoming New York City-area casinos. Atlantic City, already experiencing diminished revenue because of online gambling, may also feel an impact.
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New Mexico
Psilocybin, the naturally occurring psychoactive ingredient in “magic mushrooms” has shown to be a promising treatment in several studies, and there is a new wave of interest in the drug in popular culture. New Mexico plans to roll out a tightly regulated medical psilocybin program by late 2027, after Governor Michelle Lujan Grisham (D) signed into law Senate Bill 219, known as the Medical Psilocybin Act. The Act establishes a regulated program for the medical use of psilocybin to treat qualified medical conditions such as PTSD, treatment-resistant depression, and end-of-life care.
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New York
A bill introduced by Assemblywoman Linda Rosenthal of Manhattan and Senator Jabari Brisport of Brooklyn would bar the state from issuing any more Concentrated Animal Feeding Operation (CAFO) permits, which are necessary for operations holding more than 700 cows. The bill essentially prohibits dairy farms from expanding beyond 700 cows in an effort to protect the environment and preserve small, family-owned dairy farms.
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North Carolina
North Carolina lawmakers are advancing House Bill 442, which mandates a recreational flounder season, dictates commercial quotas, mandates a stock assessment report, and establishes a year-round red snapper season. The bill runs contradictory to the recommendations of state fishing regulators who are already concerned about the sustainability of the North Carolina fisheries.
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North Dakota
The North Dakota Legislature passed expanded regulations and penalties regarding pornography and deep fake content during the 2025 session. Governor Kelly Armstrong (R) signed Senate Bill 2380 and House Bill 1561 into law, both requiring age verification for websites containing pornographic material that could be harmful to minors. Armstrong also signed House Bill 1351 into law, making it a misdemeanor to create, possess, and distribute real, altered, or computer-generated deep fakes that show nude or partially nude figures without consent.
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Ohio
The Ohio Legislature is close to consensus on changes to the state’s cannabis law as dictated in Senate Bill 56. The bill modifies state marijuana law, limiting concentrations of THC in certain products. Other provisions of the bill target where Ohioans can purchase THC-containing products, where these products can be consumed, and how related tax revenues can be used.
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Oklahoma
Governor Kevin Stitt (R) signed House Bill 2764 into law, reducing the state’s top income tax bracket from 4.75% to 4.5% and collapsing the state’s six tax brackets into three. The fiscal impact is expected to be about $350 million.
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Oregon
Headed to Governor Tina Kotek (D)’s desk is Senate Bill 551, which will ensure that retailers and restaurants cannot offer any kind of plastic bags to customers. A bill passed in 2019 already banned single-use plastic bags, but left open the option that stores could offer thicker plastic bags that are technically considered reusable, but are often discarded after one use anyways. SB 551 eliminates this loophole, ensuring that bags are made of only recycled paper.
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Pennsylvania
State Senator Marty Flynn is spearheading the Keystone Cannabis Act, which would establish a regulatory framework for the cultivation, distribution, and retail sales of marijuana to adults 21 years and older. His plan also describes a Commonwealth community reinvestment fund, allowing revenues generated through cannabis sales to be directed to revitalizing rural communities, improving critical local infrastructure, and supporting law enforcement and educational programs focused on substance use prevention.
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Tennessee
Tennessee education is primarily funded through two sources of revenue: sports betting and Tennessee Lottery revenues. As the Tennessee Lottery revenues continue to decline while sports betting revenues increase, Governor Bill Lee (R) proposed diverting some of the sports betting revenue into a school construction fund. This effort is part of a larger legislative package Lee presented during a special session in January. Lawmakers amended his proposal, noting the importance of maintaining the same educational scholarships and programs that were funded by Tennessee Lottery revenues previously.
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Texas
Texas lawmakers passed a plan this week to invest billions of dollars into the state’s water infrastructure and future water supply over the next 20 years. House Joint Resolution 7 will send a proposal to voters in November to allot $1 billion a year, starting in 2027 and ending in 2047, to better secure the state’s water supply via various projects such as desalination, infrastructure reparation, water conservation, and flood mitigation projects. Before the legislation can be sent to Governor Greg Abbott (R)’s desk, the Senate and House need to approve each chamber’s amendments.
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West Virginia
West Virginia continues to lead the United States in its rate of overdose deaths. The state already has nine methadone clinics, but state law prohibits additional centers from opening. Despite the clear crisis, lawmakers left the 2025 legislative session without expanding access to methadone clinics, but rather introducing Senate Bill 204 to make opioid treatment programs unlawful and to impose fees for noncompliance.
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Wisconsin
On Wednesday, members of the Early Detection Saves Lives Coalition held a press conference at the Wisconsin State Capitol to advocate for Gail’s Law. The legislation focuses on reducing costs for supplemental screenings and diagnostic imaging for follow-ups for women with increased risk of metastatic breast cancer.
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