US stocks add a bit more to their all-time high

US stocks add a bit more to their all-time high

By STAN CHOE AP Business Writer

NEW YORK (AP) — The U.S. stock market added to its record on Monday as Wall Street closed out a second straight winning month.

The S&P 500 rose 0.5% in its first trading after completing a stunning recovery from its springtime sell-off of roughly 20%. The Dow Jones Industrial Average added 275 points, or 0.6%, and the Nasdaq composite gained 0.5%.

Stocks got a boost after Canada said it’s rescinding a planned tax on U.S. technology firms and resuming talks on trade with the United States. On Friday, U.S. President Donald Trump had said he was suspending talks with Canada because of his anger with the tax, which he called “a direct and blatant attack on our country.”

One of the main reasons U.S. stocks came back so quickly from their springtime swoon has been hope that Trump will reach deals with other countries to lower his stiff proposed tariffs. Otherwise, the fear is that trade wars could stifle the economy and send inflation higher.

Many of Trump’s announced tariffs are currently on pause, and they’re scheduled to kick back into effect in a little more than a week.

The U.S. stock market being back at a record high could actually raise the risk of renewed escalations on tariffs, according to strategists at Deutsche Bank led by Parag Thatte and Binky Chadha. They point to the pattern in 2018 and 2019 of rallies for the market prompting escalations for tariffs, which then drove the market lower and led to subsequent pullbacks on tariffs, which then sparked rallies again.

“Despite the rhetoric to the contrary, this dynamic looks alive and well,” the strategists wrote in a report. “In our view, beyond the market reaction, if negative impacts of tariffs on growth, earnings or inflation start to materialize, we will get further relents.”

On Wall Street, Oracle’s 4% rise was one of the strongest forces lifting the S&P 500. CEO Safra Catz said the tech giant “is off to a strong start” in its fiscal year and that it signed multiple large cloud services agreements, including one that could contribute over $30 billion in annual revenue two fiscal years from now.

GMS’ stock jumped 11.7% after the supplier of specialty building products said it agreed to sell itself to a Home Depot subsidiary in a deal that would pay $110.00 per share in cash. That would give it a total value of roughly $5.5 billion, including debt.

Less than two weeks ago, another company, QXO, said it was offering to buy GMS for $95.20 per share in cash. After the announcement of the Home Depot bid, QXO’s stock rose 3.9%, and Home Depot’s stock slipped 0.6%.

Hewlett Packard Enterprise rallied 11.1% and Juniper Networks climbed 8.4% after saying they had reached an agreement with the U.S. Department of Justice that could clear the way for their merger go through, subject to court approval. HPE is trying to buy Juniper in a $14 billion deal.

Bank stocks were also solid after the Federal Reserve said on Friday that they are financially strong enough to survive a downturn in the economy. JPMorgan Chase climbed 1%, and Citigroup gained 0.9%.

All told, the S&P 500 rose 31.88 points to 6,204.95. The Dow Jones Industrial Average added 275.50 to 44,094.77, and the Nasdaq composite gained 96.27 to 20,369.73.

In the bond market, Treasury yields fell ahead of several major economic reports later in the week. The highlight will be Thursday’s jobs report. It’s often the most anticipated economic data of each month, and it will come a day earlier than usual because of Friday’s Fourth of July holiday.

The job market has remained relatively steady recently, even in the face of tariffs, but hiring has slowed. Economists expect Thursday’s data to show another step down in overall hiring, down to 115,000 jobs in June from 139,000 in May.

Such data has helped keep the Federal Reserve on hold this year when it comes to interest rates. Fed Chair Jerome Powell has said repeatedly that it’s waiting for more data to show how tariffs will affect the economy and inflation before resuming its cuts to interest rates. That’s because lower rates can fan inflation higher, along with giving the economy a boost.

Trump, meanwhile, has been pushing for more cuts to rates and for them to happen soon. Two of his appointees to the Fed have said recently they could consider cutting rates as soon as the Fed’s next meeting in less than a month.

The yield on the 10-year Treasury fell to 4.23% from 4.29% late Friday.

In stock markets abroad, indexes dipped modestly in Europe following a more mixed finish in Asia.

Stocks fell 0.9% in Hong Kong but rose 0.6% in Shanghai after China reported its factory activity improved slightly in June after Beijing and Washington agreed in May to postpone imposing higher tariffs on each others’ exports, though manufacturing remained in contraction.

___

AP Business Writer Elaine Kurtenbach contributed.

Sen. Thom Tillis in stepping aside goes the way of other Republicans who have challenged Trump

Sen. Thom Tillis in stepping aside goes the way of other Republicans who have challenged Trump

By LISA MASCARO AP Congressional Correspondent

WASHINGTON (AP) — Flake. Corker. Romney.

And now, Sen. Thom Tillis.

The roll call of Republican senators in the U.S. Congress who have called it quits, rather than endure a political career sideways with President Donald Trump, is long, notable — and apparently, still growing.

Tillis, the GOP senator from North Carolina, announced his decision not to seek reelection Sunday, a stunning moment, given its timing.

It arrived a day after Trump trashed Tillis online, threatening to campaign against him, after the senator revealed he would oppose Trump’s big tax breaks bill because of its deep cuts to Medicaid that he warned would devastate his state.

“My goal is not to undermine the president,” Tillis told the Associated Press and others late Sunday night at the U.S. Capitol.

“But why not do it right? And why not take the time to make sure that we’re not going to have unintended consequences, which will also have, I think, substantial political consequences next year if we’re not careful.”

The senator, like others before him, has run up against the limits of his own perceived truth-telling, particularly when it goes against the views of the president or threatens the White House agenda.A tough reelection became tougher

Tillis’ reelection in the Tar Heel State was already expected to be difficult, a $600 million campaign, he said he was told. Democrats see the state as a prime pick-up opportunity in next year’s elections as they try to flip the seat and retake majority control of the Senate from Republicans.

Turning 65 later this year, Tillis said he had been weighing his decision, and having put a cancer diagnosis behind him was charting the next phase of his life. A former House speaker in North Carolina, he noted he has been in office for some 20 years.

But Trump’s unchallenged grip on the party, and his singular ability to not only tank political careers but also deeply influence the views of Republican voters, leaves little room for dissent.

Most GOP senators who confronted Trump during his first term – Arizona’s Jeff Flake, Tennessee’s Bob Corker and Utah’s Mitt Romney, who was the only Republican to vote to convict Trump in both of his Senate impeachment trials – have long since stepped aside.

Tillis bristled at those comparisons.

“No, no, no. Look, I am an unlikely senator,” Tillis said.

He insisted, “I don’t like any of the trappings that many senators like up here. I like doing work. I like going home, and I like being with my family. That’s me.”Tillis wants Trump to succeed

Tillis, as he walked back to his Senate office, told the story of living in a trailer park in Nashville as a teen with his family, before branching out on his own.

At about 16, he had been a cook at a roadside diner, “like a Denny’s,” he said, but found that the waiters made more money with tips, so he switched. He was grossing about $10,000 a year. Then he moved on to a warehouse job, earning about the same pay, and was able to move into the trailer of his own.

That’s one reason why he opposes Trump’s tax bill: he says it’s not the kind of relief the president is promising for working Americans. Take the president’s no tax on tips plan, he said.

“Thom Tillis the waiter gets a tax break. Thom Tills the warehouse worker doesn’t,” he said.

“Why can’t we figure out a way to give it to both of them versus something that catches an applause line in Las Vegas?”

Tillis went on, “I would love to have told the president this story. Instead of people getting gimmicky and targeting things — and not looking at the inherent unfairness of that policy and the additional billions of dollars we have to spend on that — which is forcing the Medicaid debate.”

He said, exasperated, “Folks, pull back.”Trump and Tillis talk

Tillis did talk with Trump over the past several days. On Friday night he said he had a good call with the president and shared his concerns with the bill.

But once the president lashed out against him Saturday night, that was about it.

“I told the president after that post that it’d probably be a good time for him to start looking for replacements,” Tillis said

In a speech later Sunday, Tillis appeared somewhat liberated, free to publicly call the bill as he saw it, a betrayal of Trump’s promises.

“I’m telling the president that you have been misinformed: You supporting the Senate mark will hurt people who are eligible and qualified for Medicaid,” he thundered from the chamber floor.

Colleagues have been taking notice. Democrats in particular can’t help but remember another pivotal moment when Republicans were trying to cut health care and a single GOP senator stood up and said no.Tillis, McCain and health care

Sen. John McCain famously voted thumbs down against the Republican plan to “repeal and replace” the Affordable Care Act, or Obamacare, in a stunning setback during Trump’s first term in the summer of 2017.

Tillis brushed off that comparison, too.

“We’re gonna get the tax bill done,” he said.

But he said, the president has advisers that are “politically too cute by half, and they’re having fun while we’re having to implement suboptimal policy that will degrade the enormous impact and the legacy that this president could otherwise have.”

And as he heads for the exits next year, Tillis said “if they continue to do this, I’ll start spending some time focusing on just who those people are.“

____

This story has been corrected to fix the Tillis quote in the ‘Trump and Tillis talk’ sub-headline, with quote beginning, ‘I’m telling the president,’ to change misled to misinformed.

New x-ray tech could make airport security faster—and smarter

New x-ray tech could make airport security faster—and smarter

RALEIGH, N.C. (WPTF) – Tired of dumping your drink and holding up the line at TSA? A Duke University spinout, Quadridox, is working on new tech that could speed up airport security—and let you keep your water bottle too. Joel Greenberg, the President of Quadridox, says the initial groundwork for Quadridox was done when he was a professor at Duke.

“My and some of my co-founders started Quadridox to commercialize and deploy some of the technology that we had developed to support the TSA and the traveling public,” said Greenberg

Stated in Duke Today, Quadridox uses X-rays, but not the way doctors detect broken bones. Those X-rays make pictures by passing straight through objects. Quadridox’s X-ray diffraction imaging, on the other hand, is used to analyze the structure of materials by observing how X-rays bounce off atoms within them, providing greater specificity of the materials being viewed.

“We developed a new kind of X-Ray technology that lets us make images like the X-Rays you would see in the hospital, but at the same time it also lets us determine what each of the items in your bag is actually made of,” said Greenberg.

Having that information will make going through airport security quicker, resulting in more accuracy and fewer delays. Potentially, Greenberg says their technology offers the potential for people to bring liquids on flights again.

“For the Quadridox product we’re focused right now on checked baggage,” said Greenburg. “The first and most important impact is that it means that the TSA is less likely to open your bag, it means that your bags more likely to make it where you actually end up and it also helps make the TSA’s job a lot easier.”

But it’s not just about how this X-Ray technology will help the aviation industry, the same technology they’ve been using has helped develop a comparable product that focuses on medical imaging.

“It helps identify cancerous regions in breast biopsies and lumpectomies,” said Greenburg. “So by better analyzing what a sample is made of we can either apply it to the aviation security space or improve cancer detection.”

In a press release from Duke University, Greenberg said Quadridox would not be where it is today without support from Duke and sustained federal funding.

Junk fees, subscriptions and overspending: why now is the time to audit your wallet

Junk fees, subscriptions and overspending: why now is the time to audit your wallet

RALEIGH, N.C. (WPTF) – It’s wild to think tomorrow marks the halfway point of 2025. And while you might be coasting through this short holiday week, CBS News Business Analyst Jill Schlesinger says now’s the perfect time to consider giving your finances a checkup.

“A lot has happened and you may have reacted to some of those things that happened, maybe you didn’t, but I just think this is a perfect time of year to kind of take a deep breath and see where you stand, personally, with your finances,” said Schlesinger.

The important thing is to spend time on things that you can control. Schlesinger says the first place to start is to look at how the first six months have gone in terms of your spending.

“You know, it’s true, you’re right, a lot of people start the beginning of the year with great aspirations like being on a budget but sometimes life does happen to interfere with those plans,” said Schlesinger.

If you want to do this the way Schlesinger suggests, you should pull your credit card bills, bank statements, automatic subscriptions and more to maybe find some money there waiting for you. However, she’s not saying you have to stop spending money on subscriptions, but the average adult unfortunately spends over $1000 a year on them.

“I just know all of us spend probably some money on some subscription that you really don’t want, need or use anymore and maybe if you eliminate that you free things up a little bit so you can spend more freely, save or pay down some debt,” said Schlesinger.

While you’re looking at your bills it’s also a good time to look at some of the fees getting charged, especially junk fees. Last year, the Biden Administration enacted a ban on Junk Fees and the Trump Administration has kept many of those in place, but there is no CSPB to oversee the ban being upheld.

“So, who are you going to complain to? That’s the problem,” said Schlesinger. “That’s why I think it really does become important for us to fight these fees by viewing all of the categories where they pop-in.”

Schlesinger wants people looking through their bank statements and credit card fees. Are there any late payments being levied? Are there some strange hotel fees you don’t know about?

Remember, the important thing to do is to spend your time on the things that you can control and not on the things you can’t, especially when it comes to your finances.

My Go-To Southern Fried Catfish

My Go-To Southern Fried Catfish

This fried catfish recipe is one of my favorites—it’s crispy, golden, and packed with flavor. Perfect for a weekend cookout or a cozy dinner at home. The buttermilk marinade keeps the fish tender, while the cornmeal crust gives it that irresistible crunch.

Ingredients

For the fish:

  • 2 cups buttermilk
  • 1 tablespoon hot sauce (plus extra if you like it spicy)
  • 1 teaspoon kosher salt
  • 1 teaspoon freshly ground black pepper
  • 1½ pounds catfish fillets
  • Vegetable oil (enough for deep frying)
  • Lemon wedges, for serving

For the dredge:

  • 1½ cups yellow cornmeal
  • ¼ cup all-purpose flour
  • 1 tablespoon kosher salt
  • 1 teaspoon freshly ground black pepper
  • ½ teaspoon paprika
  • ½ teaspoon garlic powder

Instructions

1. Marinate the Fish:
In a large bowl or a zip-top bag, mix the buttermilk, hot sauce, salt, and pepper. Add the catfish fillets and make sure they’re fully coated. Cover and refrigerate for at least 2 hours… 8 hours if you’ve got the time. This step really helps the flavors soak in.

2. Get the Dredge Ready:
In a wide bowl or shallow dish, whisk together the cornmeal, flour, salt, pepper, paprika, and garlic powder. Take each piece of catfish out of the marinade and let the excess drip off. Dredge the fish in the cornmeal mix until it’s well coated, then set it aside.

3. Time to Fry:
Pour vegetable oil into a large pot or Dutch oven until it’s about halfway full. Heat the oil to 350°F. Fry the fish in batches so you don’t crowd the pot—each batch should take about 5 to 6 minutes, until the fish is a beautiful golden brown. Transfer to a plate lined with paper towels and sprinkle with a little salt right away.

Serve it up hot with lemon wedges and a dash of extra hot sauce on the side. Trust me. This one’s a crowd-pleaser.

Hailstorm and hackers disrupt southeast air travel ahead of Fourth of July

Hailstorm and hackers disrupt southeast air travel ahead of Fourth of July

RALEIGH, N.C. (WPTF) – A sudden hailstorm slammed into Atlanta’s main travel hub, forcing the diversion of 90 flights and throwing travel plans into chaos across the Southeast. Aviation Analyst Jay Ratliff says it’s one thing when our cars are subjected to a hailstorm but it’s quite another when it involves aircraft.

“You [even] had the airplanes that were on the ground in Atlanta, of course that’s a major hub for delta, and they had 100 airplanes sustain some kind of damage. Of course when that happens the aircraft has to be checked out by a mechanic before they allow it to fly,” said Ratliff.

According to WBTV, Friday, June 27, 731 flights were delayed and 135 were canceled at Charlotte airport. During a busy travel season, taking over 100 airplanes off the schedule is going to cause some problems.

“It was inconvenient for passengers through the weekend, yes, but when you’re dealing with an issue of safety, it’s a needed step by Delta and certainly well done,” said Ratliff.

While hailstorms of this magnitude are not very common, Ratliff says they come on so quickly the airlines don’t have a chance to prepare.

Along with unpredicted hailstorms, a notorious cybercriminal group is taking aim at U.S. airlines—threatening chaos in an already high-stress season for flyers. Ratliff says the group is called ScatteredSpider and came on the scene around two-to-three years ago taking on Las Vegas casinos.

“We’ve had WestJet, Alaskan Airlines and a couple of others that had announced that they had issues and we’re being told it’s not a safety issue, not something that’s going to cause an airplane to crash or anything like that, but it could certainly slow things down which is what we’ve seen,” said Ratliff.

According to Akamai.com, the reason why the airline industry is a target is because airlines keep logs of extensive sensitive information such as payment data, critical flight operations to even passenger details. A data breach for any of these areas can have major consequences such as financial fraud, identity theft or even widespread operational disruptions and cancellations of various flights that could affect thousands of travelers.

To complicate matters even further, cyberattacks not only threaten airlines’ reputations but can also lead to cascading effects and disruptions across the broader aviation ecosystem.

“A lot of times you have Delta, American, United, SouthWest, they’ve gobbled up like Pac-Man several other airlines and instead of completely redoing the computers they will patch them all together,” said Ratliff.

Ratliff says the lack of most recent technology for firewalls and things of this nature many times leaves the industry susceptible to these things.

Right now what passengers and flight crews are looking at is the airlines simply trying to deal with the problem.

Future of NASCAR’s downtown Chicago weekend is unclear going into the third year of contract

Future of NASCAR’s downtown Chicago weekend is unclear going into the third year of contract

By JAY COHEN AP Sports Writer

CHICAGO (AP) — When it comes to NASCAR’s upcoming return to downtown Chicago, Julie Giese has a long list of responsibilities. The track president is monitoring an ambitious construction schedule for the street course, to go along with everything else that goes into the busy weekend.

What happens next is going to have to wait.

The future of NASCAR in Chicago is murky going into its third edition on the first weekend in July. The three-year contract between the motorsports organization and the city that was announced in 2022 has two mutual options, and their fate is unclear.

Giese said there have been “good conversations” between NASCAR and the city, and there is time to work on the possibilities beyond the event.

“So really right now the focus is on let’s execute a really great 2025,” Giese said. “We’ll continue to have the conversations with the city. But right now, honestly, the more consistent conversations are the planning conversations.”

Messages were left by The Associated Press seeking comment from Mayor Brandon Johnson’s office. Johnson’s predecessor, Lori Lightfoot, was in charge when the original agreement between NASCAR and the city was finalized.

The Athletic reported on June 18 that NASCAR was nearing an agreement to put a street race in the San Diego area next year. An announcement could come as soon as July.

Asked if she had spoken with NASCAR or anyone in the San Diego area about a Southern California street race, Giese said her focus is on Chicago. She also said she feels there is room for multiple street courses on NASCAR’s calendar.

“We have multiple road course races on the schedule,” she said. “So I mean … I’ve not ever heard where it has to be one or the other. I mean there is room. This event, we went into it that first year knowing full well it was a proof of concept. And we showed that it is possible.”

The Xfinity and Cup Series races in Chicago — held on a 12-turn, 2.2-mile course against the backdrop of Lake Michigan and Grant Park — are the main events in a festival-like weekend that also includes music and entertainment options.

It is geared as much to a new audience in one of NASCAR’s most important regions as it is to the most ardent racing fans. NASCAR used to race at Chicagoland Speedway in Joliet, a 45-mile drive from downtown, but it pulled out after the 2019 season.

“This is a top-three market for us, worldwide frankly, for NASCAR fans,” NASCAR executive Ben Kennedy said when the Chicago event was announced in 2022.

There was some concern for drivers and their teams about the course ahead of the first weekend, and it wasn’t exactly warmly received by local businesses and residents because of the street closures in a heavily trafficked area for tourists in the summer.

But organizers have shrunk the construction schedule from 43 days in 2023 to 25 this year. Based on input from fans, they also have made adjustments to the race viewing areas and moved the concert stage to the start-finish line. Admission is free for kids 12 and under on Saturday and Sunday this year.

The weekend also has won over at least some people inside of NASCAR.

“This was very different. But now it’s fun to see and hear from people in the industry that are coming in early, and they’re going to just enjoy the city for a few days,” Giese said. “The one piece that I hear from our drivers, especially, is they love just staying right at a hotel right across the street. They’re walking across Michigan Avenue and they’re at the course.”

Quite often with an umbrella. Wet weather had a major effect on each of the first two editions. Heavy rain nearly scuttled the inaugural weekend, and last year’s Cup Series race was shortened because of a rain delay and fading sunlight.

When the drivers were on the course, the racing was compelling. Shane van Gisbergen outdueled Justin Haley and Chase Elliott on his way to a historic Cup victory in 2023, and Alex Bowman stopped an 80-race drought with his victory last year.

“I think they’ve been up against it as far as conditions are concerned,” Joe Gibbs Racing driver Denny Hamlin said. “The track has been good, it’s been racy and has passing zones and the scenery is fantastic as far as the backdrop we are racing in. There’s a lot of positives for the Chicago Street Race.

“It will probably move around in the future, but it’s in the mold in which I would like to see any street race they continue to implement in the future.”

Jury begins deliberating in Sean ‘Diddy’ Combs’ sex trafficking trial

Jury begins deliberating in Sean ‘Diddy’ Combs’ sex trafficking trial

By MICHAEL R. SISAK and LARRY NEUMEISTER Associated Press

NEW YORK (AP) — Jurors started deliberating Monday in Sean “Diddy” Combs’ sex trafficking case, weighing charges that could put the hip-hop mogul in prison for life.

After receiving legal instructions from federal Judge Arun Subramanian for more than 2 hours, the jury of eight men and four women headed behind closed doors to deliberate. They’ll be sifting through seven weeks of sometimes graphic and emotional testimony about the rap, fashion and reality TV impresario ’s propensity for violence and his sexual predilections, including drug-fueled sex marathons dubbed “ freak-offs ” or “hotel nights.”

Combs, 55, has pleaded not guilty to federal charges of racketeering conspiracy, two counts of sex trafficking — relating to two of his ex-girlfriends — and two counts of transportation to engage in prostitution for allegedly arranging to fly sex workers across state lines.

In closing arguments last week, federal prosecutors and Combs’ defense team took their last shots at convincing jurors to convict or acquit the Grammy Award-winning founder of Bad Boy Records.

“The defendant used power, violence and fear to get what he wanted,” Assistant U.S. Attorney Christy Slavik said. “He thought that his fame, wealth and power put him above the law.”

She said that he used his “close inner circle and a small army of personal staff, who made it their mission to meet the defendant’s every desire, promote his power and protect his reputation at all costs.”

Defense lawyer Marc Agnifilo countered, “This isn’t about crime. It’s about money.” He noted that one of Combs’ accusers in the criminal case also sued him in civil court.

“He is not a racketeer. He is not a conspirator to commit racketeering. He is none of these things. He is innocent. He sits there innocent. Return him to his family, who have been waiting for him,” the lawyer told jurors.

In all, 34 witnesses testified, headlined by Combs’ former girlfriends Cassie — the R&B singer born Casandra Ventura — and “ Jane,” who testified under a pseudonym. Both women said he often was violent toward them. Cassie said he forced her into hundreds of sexual encounters with paid male sex workers while Jane recounted numerous “hotel nights.”

Jurors also saw now-infamous security camera video of Combs beating, kicking and dragging Cassie at a Los Angeles hotel in 2016 and clips from videos of sexual encounters.

Combs chose not to testify, and his lawyers didn’t call any witnesses in their defense case. His attorneys elected instead to challenge the accusers’ credibility during lengthy cross-examination questioning.

The defense has acknowledged that Combs veered into violence, but his lawyers maintain that the sex acts were consensual. They contend that prosecutors are intruding in Combs’ personal life and that he’s done nothing to warrant the charges against him.

States brace for impact as Trump’s big bill nears completion in Congress

States brace for impact as Trump’s big bill nears completion in Congress

By DAVID A. LIEB Associated Press

JEFFERSON CITY, Mo. (AP) — President Donald Trump’s big bill to cut taxes and reduce federal spending on some social safety net programs could have large implications for states, but for many it’s too late to do much about it this year.

Tuesday marks the start of a new budget year in 46 states. Though some legislatures are still working, most already have adjourned and finalized their spending plans without knowing whether federal funding will be cut and, if so, by how much.

“The ebb and flow of rumors and reality have created great uncertainty and some anxiety in state governments,” said David Adkins, executive director of The Council of State Governments.

Several states have taken preemptive steps, setting aside money in reserves or tasking committees to monitor the impact of federal funding reductions. Others are tentatively planning to return in special sessions this year to account for potential funding cuts to joint federal-state programs such as Medicaid and the Supplemental Nutrition Assistance Program, or SNAP. Others will have to wait until their legislatures are back in session next year.What’s at stake for states?

“If there are significant cuts, states wouldn’t be able to fully absorb those,” said Brian Sigritz, director of state fiscal studies at the National Association of State Budget Officers.

Nationally, the Medicaid health care program for lower-income residents accounts for 30% of total state expenditures, according to the health policy research organization KFF. That makes it the costliest program in many states, ahead of even K-12 education. The bulk of Medicaid money comes from the federal government, meaning any changes in federal policy can create big ripples for states.

Legislation pending in Congress would affect Medicaid in several ways. New work requirements are expected to reduce enrollment by millions of people, while other proposed changes also could reduce federal payments to states.

Until now the federal government also has covered the full cost of SNAP benefits and half the administrative costs. Trump’s bill would shift more of those costs to states, leaving them to either divert money from other purposes or trim back their food assistance programs.

The Medicaid and SNAP changes are just the latest in a series of Trump policies affecting state finances, including the rollback of grants for transportation and high-speed internet projects and attempts to withhold federal funds from sanctuary jurisdictions that limit cooperation with federal immigration authorities.Some legislatures are stocking up on savings

A surge in federal aid and state tax revenue during the coronavirus pandemic led to booming budgets and historic cash surpluses in many states. As revenues slow and those surpluses get spent, some states now are trying to guard against federal funding reductions.

New Mexico enacted a law this year creating a Medicaid trust fund gradually stocked with up to $2 billion that can be tapped to prop up the program if federal funding cuts would otherwise cause a reduction in coverage or benefits.

Hawaii lawmakers, in crafting the state’s budget, left an extra $200 million in the general fund as a contingency against federal funding uncertainty. They plan to return for a special session.

And Vermont’s budget sets aside up to $110 million in case federal funding is cut. That includes $50 million that can be spent while the Legislature is not in session and up to $60 million that could be appropriated in the future to address federal funding shortfalls.

Though not necessarily tied to federal cuts, Florida lawmakers approved a proposed constitutional amendment that would set aside $750 million a year — or an amount equal to up to 25% of the state’s general revenue, whichever is less — in a reserve fund that lawmakers could use for emergencies. That measure still must go before voters.Some governors are cutting back on spending

Because of legislative deadlines, some state lawmakers had to craft budgets well before the details of Trump’s bill took shape.

Virginia lawmakers passed a budget in February for their fiscal year that starts Tuesday. Republican Gov. Glenn Youngkin announced several dozen line-item vetoes in May with the goal of creating a roughly $900 million financial cushion.

“There are some short-term risks as President Trump resets both fiscal spending in Washington and trade policies that require us to be prudent and not spend all of the projected surplus before we bank it,” Youngkin said in a statement.

Other states also have left money unspent, even though it has not always been touted as a buffer against federal cuts.

States are “enacting really cautious budgets, knowing that they may have to kind of revise them in special sessions or address changes in next year’s sessions,” said Erica MacKellar, a fiscal affairs program principal at the National Conference of State Legislatures.Some are taking a wait-and-see approach

Before adjourning their sessions, some state legislatures established procedures to monitor federal funding cuts and recommend budgetary changes.

Montana’s budget includes $50,000 for an analysis of the financial implications of federal actions, but that spending kicks in only upon the cancellation of at least $50 million of previously approved federal funding or the anticipated loss of at least $100 million of future revenue.

If federal funding to Maryland decreases by at least $1 billion, a provision approved by lawmakers requires the state budget office to submit a report to the General Assembly with proposed actions and potential spending reductions.

The spending plan passed by Connecticut lawmakers also requires the state budget office to respond quickly to federal reductions by identifying state funds that could be used to preserve programs, particularly those providing health care, food assistance, education and other priorities.

North Dakota lawmakers left room for more work. They adjourned their biennial session six days shy of their 80-day limit, allowing time to reconvene if needed.

Hidden Gems of North Carolina

Hidden Gems of North Carolina

Go Explore Our State

Asheville Pinball Machine Museum

Do you remember when arcades were everywhere and you could go and spend hours roaming the games and racking up points? One of those games was the pinball machine and some people have become masters of the flippers. But did you know there is a place to go explore over 80 games in one location for the pinball game? Asheville has a museum for the pinball machine and was awarded the “Best Arcade” award of 2025.

Photo by Getty Images

Graveyard of the Atlantic Museum

North Carolina’s coast is nicknamed the Graveyard of the Atlantic because of the thousands of ships found along the shores. This maritime museum honors those shipwrecks and gives great information about the recovery and preservation of the history just below the water’s surface.

Photo by Getty Images

Sylvan Heights Bird Park

Take a trip to the world’s largest waterfowl park which features over 2,500 birds located in Scotland Neck, North Carolina. These birds come from all over the world and some are even endangered. There is fun for all ages at this adventure.

Photo by Getty Images

Wheels Through Time Transportation Museum

Have you ever been to Maggie Valley, North Carolina? Have you ever heard of the Wheels Through Time Transportation Museum? Well you should take a quick trip down to this fun museum that is all about rare American motorcycles and memorabilia. Many folks who visit say that you might need two days to view and experience everything.

Photo by Getty Images

Recent News

Powered By SoCast