State governments entered their 2027 fiscal years facing an increasingly difficult fiscal landscape. Legislatures across the country sought to address rising costs of housing, food, child care, utilities, and health care while managing slowing revenue growth, structural budget gaps, and declining fiscal flexibility. Although many states entered the budget cycle with stronger reserve balances than before the pandemic, those reserves are shrinking, ending balances have declined for three consecutive years, and policymakers are increasingly relying on one-time solutions to balance budgets rather than sustainable revenue growth.
This week, the Department of Homeland Security (DHS) released a new public charge rule that is likely to increase fear and uncertainty among immigrant and mixed-status families, including families already struggling to afford food.
The Community Eligibility Provision (CEP) has become one of the nation’s most effective tools for ensuring students have access to healthy school meals. CEP allows high-need schools and school districts to offer breakfast and lunch to all students at no charge, eliminating barriers that can prevent children from receiving nutritious meals during the school day.
