State lawmakers and governors will have decisions to make in 2026 about the budgets for their biggest social safety net programs. It comes in response to the tax cut and policy law that President Donald Trump signed last year. The measure imposes new work requirements for some people with Medicaid health coverage. It also raises the states' share of costs for the Supplemental Nutrition Assistance Program, or SNAP, which helps 1 in 8 Americans buy groceries. Many states could also decide whether to fall in line with tax cuts, including eliminating income taxes on tips and overtime.

Protests in Iran are intensifying due to the country's struggling economy, putting pressure on its theocracy. Tehran is still dealing with the aftermath of a 12-day war with Israel in June, which included U.S. bombings of nuclear sites. Economic pressure increased in September with the return of U.N. sanctions, causing Iran's currency to plummet. Activists say demonstrations have spread to over 220 locations across 26 provinces, with at least 20 people killed and more than 990 arrested. The protests began with economic concerns but have grown to include anti-government sentiments. Iran's nuclear program and tense relations with the U.S. are adding to Tehran's challenges.

Since returning to the White House in January, President Donald Trump has overturned decades of U.S. trade policy — building a wall of tariffs around what used to be a wide open economy. His double-digit taxes on imports from almost every country on earth have disrupted global commerce and strained the budgets of consumers and businesses worldwide. They have also raised tens of billions of dollars for the U.S. Treasury. Still, the erratic way the president rolled out his tariffs  made 2025 one of the most turbulent economic years in recent memory.

U.S. consumers were less confident in the economy in December as Americans remain anxious about still-high prices and the impact of President Donald Trump’s sweeping tariffs. The Conference Board said Tuesday that its consumer confidence index fell 3.8 points to 89.1 in December from November’s upwardly revised reading of 92.9. That reading was 85.7 in April, when Trump rolled out his import taxes on U.S. trading partners. A measure of Americans’ short-term expectations for their income, business conditions and the job market remained stable at 70.7, but remains well below 80, the marker that can signal a recession ahead. It was the 11th straight month that reading has come in under 80.

Tyson Foods is closing its beef plant in Lexington, Nebraska, laying off 3,200 workers next month in a town of just 11,000. Nearly a third of the town’s population will be out of work, causing spinoff layoffs in local businesses and threatening to unravel the small town. Workers who bought homes and sent their children to college will be stuck with bills they won’t be able to pay. Hundreds of families may be forced to pack up and leave. Local businesses struggling without enough customers may have to join them. State agencies are responding with the urgency of a natural disaster, but the workers still have no clear plan for what comes next.

Tyson Foods is closing its beef plant in Lexington, Nebraska, laying off 3,200 workers next month in a town of just 11,000. Nearly a third of the town’s population will be out of work, causing spinoff layoffs in local businesses and threatening to unravel the small town. Workers who bought homes and sent their children to college will be stuck with bills they won’t be able to pay. Hundreds of families may be forced to pack up and leave. Local businesses struggling without enough customers may have to join them. State agencies are responding with the urgency of a natural disaster, but the workers still have no clear plan for what comes next.

Lawmakers across the U.S. will be debating whether to adopt new federal tax breaks for tips, overtime and business expenses. The Trump administration is urging states to follow its lead by applying the federal tax cuts to state income taxes. But that decision varies by state. In some places, the tax breaks automatically apply unless legislatures opt out. In others, they won't occur unless legislatures opt in. States embracing all of President Donald Trump's tax cuts could offer significant savings to taxpayers but may also face financial strain. So far, only a few states have voted on these tax breaks, with Michigan being the first to opt in for tips and overtime.

Federal prosecutors say about half of the roughly $18 billion in federal funds that supported 14 Minnesota-run programs since 2018 may have been stolen. First Assistant U.S. Attorney Joe Thompson said Thursday that the scale of fraud in Minnesota puts services at risk for people who really need them. While prosecutors typically see fraud manifest as providers overbilling, Thompson says companies have been created to provide zero services while pocketing federal funds for international travel, luxury vehicles and lavish lifestyles. He says the “magnitude cannot be overstated,” and that the fraud is ”staggering."