Federal Budget Cuts That Disproportionately Affect Blue States
Written by
G. Brian Davis
Edited by
Zuri Anderson
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In May, the White House released its budget proposal for fiscal year 2026, which included $163 billion in cuts to non-defense spending.
Critics contend that the cuts disproportionately affect blue states that typically vote Democrat. Keep an eye on the following proposed cuts, which could particularly bludgeon blue states.
Also find out how some federal budget cuts could disproportionately affect red states.
Infrastructure Funding
The budget proposal includes cutting $19.3 billion from the Department of Energy, specifically by slashing funding from the Infrastructure Investment and Jobs Act and the Office of Energy Efficiency and Renewable Energy. The states currently collecting the most funds for renewable energy include California, Michigan, New York, Washington, and Georgia.
But the changes to infrastructure spending don’t end there. The Administration has reshuffled federal funds for flooding and water construction budgets from blue to red states. The two biggest losers included California and Washington, which stand to lose a combined $606 million, according to a report by CNN.
Meanwhile, Texas stands to gain an extra $206 million. The budget proposal shifts civil works projects so that blue states receive just 33% of the funds, compared to 64% for red states.
Medicaid Cuts
The One Big Beautiful Bill Act (OBBBA) proposed over $600 billion in cuts to Medicaid, which could rise to $900 billion in the Senate version of the bill. The bill was signed into law on Jul. 4.
“Shifting Medicaid benefits over to the states will put a burden on their budgets that many cannot handle,” explains Tasha Preisner, tax law specialist with DeMar Consulting Group.
For example, California tops the list for total Medicaid spending at $124.1 billion, per U.S. News and World Report. Following on their heels is New York, with $97.9 billion.
SNAP (Food Stamp) Cuts
The OBBBA cuts funding for the Supplemental Nutrition Assistance Program (SNAP) by nearly $300 billion through 2034. The program provides food benefits for one in five children in the U.S., and the Center on Budget and Policy Priorities estimates that over 2 million children will lose some or all of their food benefits.
Aaron Razon, consumer budgeting expert with CouponSnake, expects many blue states to struggle with the cuts.
“Blue states like Massachusetts and California have a high cost of living and many residents who rely on social services,” Razon noted. “SNAP and other social support cuts would hit them hard, and potentially lead to greater food insecurity, poverty putting further strain on these states’ resources and social safety nets.”
Science and Health Research Cuts
Under the White House budget proposal, the National Institutes of Health (NIH) would lose $18 billion, or 41% of its funding. The numbers look even worse for the National Science Foundation (NSF), which stands to lose 57% of its annual funding ($5.2 billion).
Guess which states receive the most research funding from the NIH and NSF? California ($6.2 billion), New York ($4.1 billion) and Massachusetts ($4 billion) round out the top three, according to Axios, with Maryland not far behind.
Education Cuts
Originally, the Trump administration called for dismantling the Department of Education entirely. On Jul. 14, the Supreme Court allowed the administration to continue laying off DOE workers, leaving the department’s fate in limbo, per CNN.
The proposed White House budget cuts $12 billion in funding for the DOE. The administration particularly called for cuts to student aid and a new limit on Pell Grants, which provide subsidies to low-income students.
The budget eliminates the Federal Supplemental Educational Opportunity Grant (FSEOG), along with all $910 million in funding. The TRIO programs and Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) programs also get the axe, and the Federal Work-Study (FWS) program loses $980 million in funding.
It proves another blow to blue states like Maryland whose economies largely run on “eds, meds, and feds.”
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