In general, the effect of the pandemic on states’ budgets due to the wave of business, retail, and commerce shutdowns, as well as other reduced economic activity across the nation, is not entirely known, or too early to forecast; however, a number of states are beginning to experience the initial impacts of a substantial downturn. With several states having already enacted their 2020-21 budgets, special sessions are expected later this year to deal with declining revenues. Others ended sessions early without a new fiscal year spending plan in place.

Connecticut Gov. Ned Lamont launched the Community Investment Fund 2030 (CIF), a five-year grant program of up to $875 million to foster economic development in historically underserved communities across Connecticut.

The U.S. Department of the Treasury announced today that five states — Hawaii, Kansas, Maryland, Michigan and West Virginia — have had their State Small Business Credit Initiative (SSBCI) capital programs approved by the agency.

The U.S. Department of the Treasury announced nine additional states whose SSBCI plans have been approved: Arizona, Connecticut, Indiana, Maine, New Hampshire, Pennsylvania, South Carolina, South Dakota, and Vermont. This is in addition to the five states approved earlier this year: Hawaii, Kansas, Maryland, Michigan and West Virginia.

After a busy election season that saw gubernatorial elections in 36 states, newly elected and re-elected governors delivered their annual State of the State addresses, kicking off new programs and reviewing the conditions of their states. SSTI reviews the speeches every year and covers news of new developments and initiatives the governors have highlighted as they relate to the innovation economy. New programs are laid out here in the governors own words as excerpts from their State of the State or budget addresses.

As this week’s recent research article mentions, R&D tax credits work, so it isn’t surprising several states have either proposed, amended, or enacted research and development (R&D) tax credits for both the current fiscal (2025) and new (2026) fiscal year in efforts to encourage innovation and economic growth. Some specifically target life sciences or biotechnology sectors while others focus on attracting new or existing companies and startups or to further develop life sciences and/or biotech sectors and hubs.

With the start of the new year, most governors deliver State of the State addresses or Budget addresses laying out their priorities for the coming year. With revenues for many states relatively consistent with forecasters expectations, lawmakers, with a few exceptions, continue to maintain cautious or constrained views of their funding priorities and proposed initiatives. As a result, many governors in SSTI’s analysis of addresses delivered so far this season, are speaking more about previously implemented programs and their continued successes rather than rolling out many new programs.

Imagine tapping into a talent pool already familiar with your region's culture, values, and challenges. This scenario is the core idea behind affinity recruiting, a strategy where communities and businesses actively target former residents, alums, and individuals with a genuine connection to the area. These initiatives aim to entice them for job opportunities, entrepreneurial ventures, leadership roles, or investment.