The West Virginia Senate unanimously passed House Bill 4667 on Monday, March 4, 2024. The bill would make it illegal for any syringe service program that seeks a license or wishes to maintain its license to distribute secure smoking paraphernalia to people who apply drugs. It now goes to the governor. (West Virginia Legislative Photography)
West Virginia state agencies—responsible for schools, road repairs, foster care and more—as well as the state Supreme Court were ordered by the Morrisey administration to cut their budgets by 2%.
Additionally an August memo The Treasury Department told authorities: “No additional state funding should be requested to replace lost federal funds.”
The spending cuts under President Donald Trump are likely to have an impact on states like West Virginia, which is constitutionally required to balance its budgets.
As West Virginia officials prepare budget requests for the next fiscal year, the state stands to lose hundreds of millions of federal dollars this year and in the years to come for critical programs like Medicaid and the Supplemental Nutrition Assistance Program, making it one of the states hit hardest by federal funding cuts.
West Virginia is the most federally dependent state in the country, meaning the state relies on federal money to run crucial programs.
West Virginia “cannot simply absorb any cuts or changes that might come from other places.” Gov. Patrick Morrisey told reporters on Jan. 5. The governor has focused on rooting out “wasteful spending” in state government by issuing a Implementing regulation It called on agencies to review their spending to identify inefficiencies.
“We have to live within our means, and I’m working to make sure there’s a sustained period of strength where we manage our budget very, very carefully,” Morrisey said, adding that his administration will continue to invest in issues like too many foster children sent out of state.
The Morrisey administration has not provided an estimate of how much federal funding the state lost last year.
Kelly Allen, The executive director of the West Virginia Center on Budget and Policy said there will be a significant impact on residents if the state doesn’t fill the gaps left by lost federal money.
“I understand the pressure and probably the frustration that state legislators are under because all of these federal costs are being shifted to the state budget,” Allen said. “If people don’t understand why services are suffering, then they’re blaming the wrong people, like the people in this agency, rather than people really understanding that it’s because of these federal cuts.”
A December report from the center said, “West Virginia’s revenue and economic numbers signal concerns about the fiscal year 2027 budget and the state’s ability to invest in programs proven to help families and workers thrive,” citing several years in which lawmakers passed tight budgets.
Along with the agency’s budget cuts, Morrisey called for state income tax cuts and the Republican-led Legislature have to agree his plan. Morrisey said the state was able to provide “significant tax relief without sacrificing essential services” because of his administration’s work on agency budgets last year.
West Virginia will lose millions of federal dollars for Medicaid, SNAP
Federal budget cuts are expected to have a significant impact on the West Virginia Department of Human Services, which oversees the state’s SNAP and Medicaid programs as well as other emergency assistance programs Care.
KFF estimates West Virginia will lose up to $1 billion per year in health funding after full implementation due to changes to Medicaid and the Affordable Care Act.
The DoHS is expected to bring in an additional $18 million per year modern SNAP administrative costs as a result of Trump’s One Big Beautiful Bill Act, Allen noted.
“If the state doesn’t step in and close this gap, we could see people relying on SNAP have more difficulty reaching customer service or getting help when they need it,” she said.
“The West Virginia Department of Human Services is currently in the process of drafting its budget for fiscal year 2027. However, this process is advisory and any program changes will not be communicated until the release of the governor’s budget in January,” said DoHS spokeswoman Angelica Hightower. Morrisey will present his budget proposal to lawmakers at Start of the legislative period this week in Charleston.
“All departments are encouraged to identify efficiencies to save taxpayer dollars and ensure we address the state’s long-term structural budget challenges,” Hightower continued. “The state is unable to absorb the federal government’s significant spending, but will seek to make strategic investments where they can benefit our citizens.”
Gailyn Markham, communications director for the state Department of Health, said the agency, which includes public health programs and the Office of Emergency Services, also said any program changes would not be communicated due to budgeting until Morrisey releases his budget proposal.
Markham emailed the same statement as Hightower.
The Department of Education sees a loss of $12 million in federal funding
The West Virginia Department of Education saw a reduction in federal funding of more than $12 million for the current fiscal year and received approximately $12 million127 million for this year.
“What [fiscal year 2027]We have not yet heard anything about when we can expect provisional allocations [United States Department of Education]said Elizabeth Younis, head of the state Department of Education Law on Primary and Secondary EducationImprovement and support.
“I know that if our enrollment goes down, our share of funding will go down,” she said.
State funding for schools has also fallen because student enrollment in West Virginia is tied to state funding levels. More than 70 public schools have closed throughout West Virginia since 2019 and further school closures and consolidations were proposed this year.
The Department of Education has submitted blanket budget requests for at least five years. Younis said.
“If funding is insufficient, the program would either look for ways to operate more efficiently to provide the same level of service or it would have to reduce the services provided.” Younis said. “As costs have increased over this period, these programs are shrinking due to the effects of inflation, making them a problem.”
Younis said local education officials have set aside some previous funding in anticipation of possible funding cuts to maintain services for students.
“LEAs are having more conversations about next year and how to deal with reduced budgets,” she said.
Courts inform the legislature of funding needs
West Virginia courts receive federal money to support some positions and programs, but changes in Washington, D.C. are not expected to impact their funding.
The Supreme Court and the judiciary were under budget pressure last year receive less funding than was required by the Legislature while more judicial positions were created throughout the state. They existed rising insurance costs for public employeesand the courts had reported a possible $7 million funding gap in the payroll.
“While we had preliminary concerns about the State Budget Office’s initial guidance, particularly in context and given the budget cuts the judiciary has had to endure in the current fiscal year, we have worked together on a fiscally responsible budget plan for fiscal year 2027,” said Jared Hunt, communications director for the West Virginia Supreme Court of Appeals.
“We continue to have an open and constructive dialogue about our funding needs,” he continued. “We are optimistic that we can work with legislators throughout the budget process during the upcoming legislative session to secure the necessary funding that will allow us to administer the justice system efficiently and effectively.”
Morrisey will deliver his State of the State address on the evening of Jan. 14, which will provide greater insight into the governor’s budget priorities. Individual state agency budgets are reviewed by lawmakers during the legislative session.
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