Update: As of July 4, four states have yet to enact a full-year budget for fiscal 2026 (MI, NC, OR, and PA).
As of July 1, 44 states have enacted a full-year budget for fiscal 2026, while in several states the governor is currently reviewing the budget bill(s). This is in line with last year when 46 states had enacted a full-year fiscal 2025 budget by July 1.
Governors in 47 states (compared to 34 last year), the territories, and the District of Columbia are enacting a new budget for fiscal 2026. Thirty-one states are approving a one-year budget for fiscal 2026, while 16 states are enacting a two-year budget for fiscal 2026 and fiscal 2027. Kentucky, Virginia, and Wyoming previously enacted a biennial budget for both fiscal 2025 and fiscal 2026, with Virginia approving revisions to its current biennial budget. Forty-six states begin their fiscal year on July 1 (New York begins its fiscal year on April 1, Texas on September 1, and Alabama and Michigan on October 1). Puerto Rico begins its fiscal year on July 1, while the District of Columbia, Guam, and the U.S. Virgin Islands begin their fiscal year on October 1.
Below is additional information on states that have yet to enact a full-year budget for fiscal 2026. Additionally, Table 12 of NASBO’s Budget Processes in the States has information on procedures if no budget is enacted by the start of the fiscal year.
- Massachusetts – The legislature finalized the budget on June 30, and the governor has 10 days to review the budget bill. Massachusetts is operating under a temporary budget for the month of July.
- Michigan – The legislature has yet to finalize the state’s budget bills for fiscal 2026. Michigan’s fiscal year does not begin until October 1.
- North Carolina – The legislature has not passed the state’s budget for fiscal 2026-2027. State law allows spending to continue at current levels until a new budget is enacted.
- Oregon – The governor is continuing to review the agency budget bills. The state will operate under a continuing resolution for the unsigned bills.
- Pennsylvania – The legislature has yet to reach a budget agreement for fiscal 2026. An enacted budget is required by the start of the year to maintain full spending authority,
- Wisconsin – The legislature reached an agreement on June 30. Spending will continue at current levels until the new budget is enacted.
As states enter fiscal 2026, they are contending with a combination of increasing spending demands, slowing revenue growth, and federal fiscal uncertainty. They are facing budget pressures in a number of areas such as Medicaid, employee health care, education, housing affordability, and disaster preparation and response. According to NASBO’s Spring 2025 Fiscal Survey of States, governors recommended holding general fund spending flat in fiscal 2026. Additionally, slow revenue growth is expected to continue for a fourth consecutive year, and a number of states have recently revised revenue forecasts downward for fiscal 2026. While expenditure and revenue growth is expected to remain slow in fiscal 2026, most states are projected to maintain or increase the size of their rainy day fund balances in dollars.
Please click here for links to proposed and enacted budgets, as well as prior budget summaries.