States remain in dire straits due to the COVID-19 pandemic and resulting economic crisis; we estimate that their budget shortfalls will total $555 billion over state fiscal years 2020-2022. These figures underscore the continued urgency of the President and Congress enacting substantially more fiscal relief and maintaining it for as long as economic conditions warrant.
Here are some recent CBPP pieces detailing the need for state fiscal relief, the harmful budget cuts states are already beginning to make, and why recent proposals from Senate Republicans are severely inadequate.
States Continue to Face Large Shortfalls Due to COVID-19 Effects
We now project that the state budget shortfalls expected from COVID-19’s economic fallout will total a cumulative $555 billion over state fiscal years 2020-2022.
CBPP
JULY 27, 2020 AT 4:30 PM