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  "path": "/opinion/2026/05/25/utahs-state-budget-is-stronger-than-others/",
  "publishedAt": "2026-05-25T15:00:00.000Z",
  "site": "https://www.deseret.com",
  "tags": [
    "ninth most prepared state",
    "According to historical budget data",
    "According to the National Association of State Budget Officers",
    "What Trump’s proposed budget would mean for public lands in Utah and beyond",
    "Opinion: What it would take to keep debt from eating America alive",
    "passed HB249",
    "Rep. Blake Moore keeps fiscal priorities in closely watched primary"
  ],
  "textContent": "The fact that our federal budget is on an unsustainable path is quite well known. But how America’s fiscal trajectory will impact state budgets is less often discussed. State employees, local students and people who rely on Medicaid or other state-run welfare programs all have a stake in this.\n\nThankfully, Utah is in a better position than most, ranking as the ninth most prepared state for the eventuality of Washington tightening its belt. It’s also one of the few states making official preparations.\n\nState governments today are, broadly speaking, more dependent on funds from Washington than ever before. In the decade following World War II, federal grants to the states accounted for just a small percentage of total federal spending. Today, they account for almost 20 cents on the dollar. Most states now get about one-third of their revenues this way.\n\nAccording to historical budget data from the Office of Management and Budget, federal grants to states now exceed $1.2 trillion annually and are set to grow further. According to the National Association of State Budget Officers, by far the largest amount is spent on Medicaid (57.4%).\n\nWhat Trump’s proposed budget would mean for public lands in Utah and beyond\n\nAssuming that all this money will keep flowing is naive. Interest payments on the debt are set to be the single-largest federal budget item by 2048 — more than Medicare, Social Security or anything else. No viable tax increase can cover this. No politician can wish away the accounting. State governments should be at least assessing, and ideally preparing, for the possibility of a reduction in federal funding.\n\nUtah begins in a strong position. Many states only have enough assets to back 50% or 60% of the long-term pension and benefit commitments that have been promised to state employees. Utah has enough assets to back 94% of these promises.\n\nSimilarly, while most states rely on the federal government for well over 30% of their revenues, federal funding makes up less than 27% of Utah’s state revenue. Utah also has a relatively low tax burden, meaning if policymakers need to fill a budget gap left by a Washington fiscal retreat, they will have more space to raise additional revenues.\n\nOne area where Utah remains exposed is its lack of rainy-day reserves. It currently has enough to continue funding state operations for just 34 days. Texas has 90 days in reserves. Next-door neighbor Wyoming has 320 days in its rainy-day fund. In a scenario where the federal government reduces federal aid by 20% or 30%, 34 days isn’t going to buy much time to fill the funding gap.\n\nOpinion: What it would take to keep debt from eating America alive\n\nEncouragingly, Utah state policymakers are taking even more proactive steps. During the 2026 legislative session, lawmakers passed HB249, which directs the state’s legislative fiscal analyst to report the portion of each budget stress test that relates to federal funds. The Federalism Commission, created in 2011 to pursue research and legislation that addresses a range of federalism issues, is then tasked with reviewing those findings and, when appropriate, recommending legislation to improve Utah’s preparedness.\n\nThe bill also requires the creation and maintenance of a public dashboard showing the state’s dependence on federal funds. Finally, it requires the state to model economic scenarios that can inform contingency planning.\n\nThis is exactly the kind of forward-looking exercise that every state should be undertaking. Federal funds will not dry up overnight, but responsible budgeting requires asking hard questions before the money disappears, not after.\n\nRep. Blake Moore keeps fiscal priorities in closely watched primary\n\nUtah’s relatively strong fiscal position should not be an excuse for complacency. Even states on solid fiscal footing will face difficult tradeoffs if Washington significantly reduces aid to the states. But a comparatively low dependence on federal funds, strong pension funding and willingness to begin stress testing right away place the state in a far better position than many of its peers. Its leaders understand that fiscal resilience matters.\n\nIn an era of growing federal fiscal strain, Utah’s proactive approach is admirable — and unusual.",
  "title": "Opinion: When Washington cuts back, Utah will be in a stronger position than most"
}