In May, theWhite Housereleased its budget proposal for fiscal year 2026, which included $163 billion in cuts to non-defensespending. Consider This:Mark Cuban Warns of 'Red Rural Recession' — 4 States That Could Get Hit Hard Read More:How Middle-Class Earners Are Quietly Becoming Millionaires — and How You Can, Too 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. Trending Now:Suze Orman's Secret to a Wealthy Retirement--Have You Made This Money Move? 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 hasreshuffled federal fundsfor 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 byCNN. 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. Find Out:Trump Tells Sean Hannity Why He Took Away One of America's Favorite Tax Cuts TheOne 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 aburden on their budgetsthat many cannot handle," explains Tasha Preisner, tax law specialist withDeMar Consulting Group. For example, California tops the list for total Medicaid spending at $124.1 billion, perU.S. News and World Report. Following on their heels is New York, with $97.9 billion. The OBBBAcuts 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 theCenter on Budget and Policy Prioritiesestimates that over 2 million children will lose some or all of their food benefits. Aaron Razon, consumer budgeting expert withCouponSnake, 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." Under theWhite 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 toAxios, with Maryland not far behind. Originally, the Trump administration called for dismantling theDepartment of Educationentirely. On Jul. 14, the Supreme Court allowed the administration tocontinue laying off DOE workers, leaving the department's fate in limbo, perCNN. 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." Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 4 Things You Should Do if You Want To Retire Early 7 Wealth-Building Shortcuts Proven To Add $1K to Your Wallet This Month 5 Things You Must Do When Your Savings Reach $50,000 This article originally appeared onGOBankingRates.com:Federal Budget Cuts That Disproportionately Affect Blue States
