State, Federal Budget Cuts Raise Property Taxes, Strain Social Services in Minnesota, D.C.

Budget cuts at both state and federal levels are prompting concerns about increased financial burdens on local governments and residents. In Minnesota, reductions in state aid and the elimination of local cannabis tax revenue are forcing counties and cities to consider property tax hikes or service cuts, with officials cautioning against overburdening vulnerable populations such as seniors and low-income residents. At the federal level, the 2025-26 budget introduces new taxes and levies on essential goods, fuel, electronics, and agricultural inputs, potentially raising costs for consumers while providing some relief to sectors like construction. In Los Angeles County, a $22.2 million budget reduction is leading to park closures two days a week, increased fees, and staff layoffs, impacting public amenities and programs. Additionally, proposed cuts in a House Republican reconciliation bill aim to reduce $546 billion in clean energy funding, which experts warn would increase energy costs for households and businesses and disproportionately harm low-income communities. These developments collectively signal a challenging fiscal environment with widespread implications for public services, energy affordability, and economic equity.