Take a peek at the first issue of State Legislatures magazine from 50 years ago, and the issues NCSL predicted states to address in 1975 will look awfully familiar.
Energy. Medicaid. Education.
Five decades later, those topics remain central for state legislatures. At a recent forum for NCSL Foundation members in Washington, D.C., Kate Blackman and Natalie Wood, NCSL vice presidents of state policy and research, shared their forecasts for key issues likely to dominate the 2025 legislative sessions.
About 137,000 bills have been introduced in state legislatures in 2024. And with every state legislature in the country, District of Columbia and territories meeting in 2025, similar numbers are expected next year.
Here’s a look at the top issues facing state legislatures in 2025 based on research requests and feedback on hot topics from legislators and legislative staff, surveys, trends from bill tracking databases and more.
Want to Dig Deeper?
Forecast ’25: A Look at 2025’s Trending Legislative Topics
This special report from State Legislatures News brings you in-depth insights from NCSL experts on what lies ahead for state lawmakers in 2025. Read the Forecast ’25 report.
Budget and Fiscal Health
State budgets, a perennial top issue, often drive policy priorities, Blackman says. With the wind-down of pandemic-related federal aid and economic uncertainties, states are preparing for a slowdown. However, replenished rainy day funds have helped maintain strong fiscal conditions. Key trends include:
- Tax reforms: States will continue exploring tax reforms, although likely at a slower rate, focusing on property tax relief and business investment incentives. “States use tax incentives to encourage investment in new projects, technology and infrastructure,” Wood says.
- Disaster mitigation: Increased natural disasters impact not only human life, but also state finances. “Disaster preparedness as part of budget development is new for states,” Blackman says. “Historically, it’s been more reactionary, so this is a newer trend we’re watching.”
Read NCSL’s full fiscal forecast.
NCSL’s Kate Blackman, left, and Natalie Wood speak to the organization’s foundation members.
Technology and Communication
Technology and communication issues will be prominent. Key areas include:
- Artificial intelligence: Significant legislative activity around AI is expected, including studying, defining and regulating its use. “In 2023, just over half of the states and two territories considered AI legislation," Wood says. "The number of bills and states looking at this topic sped up rapidly in 2024 and over half the states, Puerto Rico and the Virgin Islands enacted AI-related legislation.”
- Privacy and security: Expect an increase in legislation on personal data collection, use and disclosure, as well as cybersecurity.
- Online and social media: Lawmakers are focused on protecting children online, including on social media, through themes such as age verification requirements, parental consent and cellphone use in schools, though some recent laws face court challenges.
Read NCSL’s technology and communication forecast.
Health Policy
Health issues, particularly Medicaid, remain at the forefront. “Medicaid is the second-largest budget item for states,” Blackman says. “But the states are still trying to figure out where their budget estimates are landing following the end of Medicaid unwinding.” Other key areas include:
- Behavioral health: Look for a continued emphasis on mental health, particularly youth mental health and crisis response and the intersection with the criminal justice system.
- Health workforce: States are expected to address shortages in the health workforce, including behavioral health, nursing, direct-care and maternal health professionals.
Read NCSL’s health forecast.
Infrastructure
Infrastructure discussions include:
- Energy: Energy storage, carbon capture, fuel choice, geothermal energy and nuclear power, as well as the impact of energy on the construction and formation of data centers, are going to be big topics, Wood says.
- Transportation: States are exploring new revenue sources due to declining gas tax revenues. “Several states dedicated one-time funding to the issue of transportation in the last year, and several others are continuing to explore and enact new transportation revenue alternatives,” Wood says. “So, think EV public charging station fees or registration fees for hybrid or electric cars.”
- Broadband: Preparing for federal investments in high-speed internet infrastructure is a priority.
- Disaster risk and resilience: “Some states are initiating innovative projects whereby state governments are partnering with local and federal funding streams to diversify how they’re preparing and how they’re looking at mitigation strategies,” Wood says.
Read NCSL’s forecasts for energy, transportation and environmental policy.
Workforce
Workforce issues are critical, with states continuing to address recruitment and retention challenges. “States are still weathering the storm of workforce shortages, particularly in the public sector,” Blackman says. “Workforce is near the top of our predictions again this year because it’s felt everywhere. It impacts education, law enforcement, transit, child care workers, the construction workforce—which also impacts the housing crisis. Even the legislature itself is looking to recruit and retain legislative staff.” Key strategies include:
- Recruitment and retention: States are exploring skills-based hiring, short-term and nondegree credentials, and reemployment after retirement. “On the retention side, the government is competing with the private sector as always,” Blackman says. “So, lawmakers are evaluating things like employee benefit programs, paid leave, retirement wages, flexibility, career advancement, all the things we know workers want.”
- Legislative staff: Recruitment and retention have been hot topics among legislative staff members in particular, Wood adds. “Legislative leaders are really focused on it,” she says.
Read NCSL’s labor and employment forecast.
Education
Education remains a significant focus, with states addressing issues from early childhood to higher education. “Education is a big umbrella,” Blackman says. Expect states to continue looking at kindergarten readiness, financing, school choice, higher education value and financial aid. Other key areas include:
- Academic performance: States are addressing post-pandemic academic performance, which is exacerbated by missing school. “Legislatures are also trying to understand some of those root causes of chronic absenteeism,” Blackman says. “Is it lack of housing or transportation? Is it disengagement?”
- Mental Well-being: Expect states to continue to explore ways to support students’ mental health and emotional well-being, given the connections with academic achievement.
Read NCSL’s education forecast.
Additional Topics
Other critical issues states are expected to face in 2025:
- Child care: Addressing gaps left by the end of federal pandemic-era funding and workforce challenges.
- Housing: Tackling the housing crisis through zoning reforms and affordable housing incentives.
- Elections: Election worker recruitment and training, and the impact of AI on elections.
- Criminal and civil justice: Oversight of corrections conditions and intersections with health policies.
Lesley Kennedy is NCSL’s director of publishing and digital content.