Housing in the United States has never been more unaffordable. Nearly half of American renters are “cost burdened,” meaning they must pay at least 30% of their monthly income to afford an average rent. And at least 771,000 people were without stable housing on a given night in 2024. The Center on Budget and Policy Priorities’ Mari Castaldi explains how state leaders can help to solve the affordable housing crisis: 

Even amid challenging state budget environments and in the face of harmful federal funding cuts and policies, states can and must fund cost-effective, evidence-based policy strategies like rental and operating subsidies and protect their existing critical investments in housing and other basic needs. States can explore new sources of revenue, like progressive real estate transfer taxes among other options, to sustainably fund new housing investments.

How the megabill will impact young Americans

The recently enacted megabill will be a windfall for the richest Americans, but reduce income for the poorest. The law is also projected to add between $3.4 trillion and $4.1 trillion to the national debt over the next decade. Angie Sumo of the Institute on Taxation and Economic Policy explains how the legislation will impact the lives of young Americans: 

Meanwhile, deficit-fueled cuts to social programs shift costs onto younger taxpayers over time. The result is a generation facing steeper tax burdens, greater financial strain, and shrinking public investment, all while the richest earners get the bulk of immediate gains. … The new megabill functions less like a policy and more like a mega-IOU, one that today’s young adults are already inheriting. While this generation did not write the bill, it will bear the consequences for decades: higher taxes, mounting debt, and fewer opportunities.

We still need FEMA

The Trump administration is proposing to overhaul the Federal Emergency Management Agency by shifting most of the financial responsibility of recovering from natural disasters from the federal government to states. While FEMA’s response to Hurricane Katrina was disorganized and insufficient, some local leaders view this move as a mistake. Torrence Banks of NOTUS reports: 

Rep. Cleo Fields, who was a state senator when Katrina hit, told NOTUS he’s hopeful this “hurricane season won’t be that bad,” but called the administration’s discussions of cuts to FEMA “very scary.” “It really makes very little sense,” Fields said. “I’ve advocated from day one that when states need the help the most, they are not in a position to help themselves. Like in Katrina, we needed the federal government. We needed all the federal agencies to be on one page to help us. And to say that we’re going to do it through a block grant doesn’t make sense to me.”

Fortunately, it appears the White House no longer plans to dismantle the agency altogether: 

[Sen. Bill] Cassidy said he believes Trump’s visit to Texas last month shows his commitment to the agency, which he thinks is a good thing. “My impression is that related to his visit to Texas after the flooding, the president is acknowledging that there is the need for some sort of federal response, even when we reform FEMA,” Cassidy said.

Louisiana has received more than $2.4 billion from FEMA since 2015, which ranks second nationally. 

First came the floodwaters, then the megabill 

Last September, Ballad Health CEO Alan Levine vowed to rebuild the Unicoi County Hospital after floodwaters ravaged the rural-Tennessee facility. But the passage of the Trump megabill in July is threatening that promise. The sprawling legislation lowers provider taxes, an important financing tool that states use to fund health care services for people with low incomes, especially in rural areas. Ariel Wittenberg of E&E explains how this move puts rural hospitals at risk: 

That could push Ballad to close several hospitals, a scenario that threatens to have bigger effects on delivering health care to low-income communities than Helene’s flooding. “So, if you’re trying to decide to spend $50 million of capital to rebuild a hospital that may have to be closed in three years, it’s an illogical decision,” Levine said. The rural hospital fund established in the law won’t offset those losses, Levine said, noting that the $50 billion will be spread across 50 states over five years. “It doesn’t really solve the problem,” Levine said. “It’s a problem that Congress has to lock arms and solve.”

Number of the Day

$213 million – Amount of money it could cost Louisiana in 2026 to offer four new tax deductions for seniors, overtime, tips and car loan interest, which were included in the megabill. (Source: Tax Foundation via the Washington Post)