The federal clawbacks are so significant that governors are warning they are entirely unable to make up the difference. "It's billions of dollars that we don't have," Hobbs said as the Senate passed the bill. "Even if we cut every single thing in the state, we don't have the money to backfill all these cuts."
By design, the bulk of the Medicaid and SNAP changes won't take effect until after the midterms, a legislative maneuver intended to shield Republicans from immediate electoral consequences that could also give governors more time to reconfigure state funding formulas. But state appropriators say they are already mapping out how to account for the steep federal losses, and may need to start moving around funds in next year's budgets.
"Do we fund food for hungry families, or do we fund our community colleges?'" said Arizona State Rep. Oscar De Los Santos, the Democratic minority leader. "Do we fund food for hungry families, or do we pay public school teachers? That is the position that Trump and the Republicans have put us in."…
https://www.politico.com/news/2025/07/14/trump-megabill-budget-nightmare-states-00449924