What states are going broke?

No U.S. states are officially "going broke," but recent reports from late 2024/2025 show New Jersey, Connecticut, Illinois, Massachusetts, and California face severe long-term fiscal challenges (sinkhole states), lacking funds for bills, while Texas and Florida show high personal financial distress, with residents struggling with debt and basic costs. Some states like North Dakota and Alaska remain fiscally strong with surpluses.

Which states are in financial trouble?

The top 5 financially distressed states

According to WalletHub's analysis of nine financial metrics across all 50 states, Texas ranks as the most financially distressed state in the U.S., followed by Florida, Louisiana, Nevada and South Carolina.

Which US states are in the most debt?

In states such as New York, New Jersey, Connecticut, Illinois, and Hawaii, total state and local government debt exceeds $26,000 per capita, making them the most indebted states in the country.

Where are Americans struggling?

Alabama and Texas round out the list, sharing struggles with high gas costs (56.3% in Alabama; 53.1% in Texas), household expenses (43.0% in Alabama; 40.7% in Texas), and food insecurity levels (both at 12.9%).

What is the best state to live in financially?

The best state for finances depends on your priorities (low taxes vs. high wages/opportunity), but top contenders often include Wyoming, Florida, Texas, Tennessee, and New Hampshire for low taxes/cost of living, while Utah, Colorado, and Washington rank highly for overall financial well-being, good wages, and affordability, with Iowa and Georgia offering strong fiscal stability and affordability too. 

Why 27 U.S. States Are Going Broke

What is the #1 cheapest state to live in?

Mississippi is consistently ranked as the #1 cheapest state to live in the U.S., primarily due to having the nation's lowest housing costs, along with very low transportation expenses, making overall living costs significantly below the national average, though it also faces high poverty rates. Other top contenders for affordability include West Virginia, Arkansas, Oklahoma, and Alabama, all offering low housing and everyday expenses. 

Which US states are not in debt?

The state governments with the lowest per capita debt at the end of 2023 were Tennessee, Utah, Nebraska, Idaho, South Dakota, Oklahoma, and Indiana, each with less than $3,000 in debt per resident.

What state is #1 in poverty?

Mississippi consistently ranks as the state with the highest poverty rate in the U.S., often followed by states like Louisiana, New Mexico, and West Virginia, according to World Population Review data from late 2024/early 2025 and U.S. Census data cited by FCNL and Visual Capitalist. Factors contributing to Mississippi's high poverty include low median household income, lower educational attainment, and higher rates of child poverty, though rates have seen some improvement over the years.
 

What has Joe Biden done to the economy?

The Biden administration has focused on "middle-out, bottom-up" economics, emphasizing job growth, manufacturing, and clean energy investments, leading to a strong labor market with low unemployment and significant private investment, alongside record small business formation, though inflation and increased national debt have also been major factors. Key achievements cited include millions of jobs added, historic manufacturing investment, falling inflation rates, and rising household wealth, with policies like the Inflation Reduction Act supporting these goals, while challenges included initial price surges. 

Is $40,000 a year considered poor?

$40,000 a year isn't technically "poverty" for a single person in most areas (as it's above the federal poverty level), but it's a tight budget in high-cost cities, qualifying as lower-middle class in many places, and struggles to support families, especially in expensive areas, though it can be comfortable in low-cost regions or for individuals with no dependents. 

Who owns over 70% of the US debt?

No single entity owns over 70% of U.S. debt, but roughly 70-80% is held domestically by U.S. investors and institutions like the Federal Reserve, Social Security, mutual funds, and banks, with the rest held by foreign investors, mainly Japan, China, and the U.K. It's a mix of internal (government-to-government) and public (investors) holdings, with domestic investors holding the largest share of the public debt.
 

What state has the worst credit card debt?

Alaska currently tops the list, with the average Alaskan consumer carrying $8,077 in credit-card debt as of Q3 2024. Alaska has historically ranked high in revolving-credit balances, but the latest increase reinforces that it remains the most indebted state on a per-consumer basis.

Which US state is the most financially stable?

There isn't one single "most" stable state, as rankings vary, but Utah, South Dakota, North Dakota, Florida, and Wyoming consistently rank high for government fiscal stability, showing strong cash, low debt, and funded pensions. For individual financial well-being, Colorado and Utah often lead due to rising incomes and high discretionary spending, while Vermont stands out for responsible resident borrowing habits. 

Is everyone struggling financially right now?

More than a quarter of US adults say they're struggling financially: 73% of Americans reported “living comfortably” or “doing okay,” according to October 2024 survey data from the Federal Reserve.

How many Americans have $20,000 in credit card debt?

While exact real-time figures vary, recent data from early 2025 suggests around 23% of Americans who have maxed out their credit cards owe over $20,000, indicating a significant portion of cardholders are in high debt, though the broader population figure is lower, with about 6% of all credit card holders holding balances above $20,000 as of late 2023. Overall, total U.S. credit card debt is over $1.2 trillion, with the average household carrying substantial debt, driven by inflation and everyday expenses. 

What states don't run a deficit?

The top “sinkhole states” — states lacking the funds to cover their costs — were New Jersey, Connecticut, Illinois, Massachusetts, and California. Conversely, 25 states touted a surplus of funds relative to their total costs and debts. The top surplus states were North Dakota, Alaska, Wyoming, Utah and Tennessee.

What has Joe Biden done that is good?

Other domestic legislation signed during his term included the Bipartisan Safer Communities Act, the first major federal gun control law in nearly three decades; the CHIPS and Science Act, bolstering the semiconductor and manufacturing industry; the Honoring our PACT Act, expanding health care for US veterans; the ...

Which president had the highest economic growth?

Determining the president with the "best" economic growth depends on the metric and time frame, but often Lyndon B. Johnson (LBJ), Bill Clinton, and Franklin D. Roosevelt (FDR) are cited for strong overall periods, while some analyses show Democrats generally presiding over higher average GDP growth than Republicans since WWII, though recent growth under Donald Trump and initial high growth under Joe Biden also stand out in some reports, highlighting complex factors beyond presidential control. 

What is considered a healthy inflation rate?

The Federal Reserve targets a 2% annual inflation rate as a sign of a healthy economy. Inflation can be caused by a variety of factors, such as increased production costs or high demand for goods and services, as well as expectations for higher inflation.

Which state has low poverty?

“According to the NITI Aayog's study in 2021, Kerala is the State with the lowest poverty rate in the country with a poverty rate of 0.7% of the total population. The government took the lead in reaching out to this small population and meeting their needs.

What is the poorest state in the U.S. 2025?

1. Mississippi: Poverty rate – 19.5% 2. Louisiana: Poverty rate – 17.9% 3. West Virginia: Poverty rate – 16.8% 4.

Is Tennessee a poor state?

Poverty Rate: Tennessee's poverty rate was 14% in 2023, up from 13.3% in 2022. The national poverty rate was 12.7% in 2023, up from 12.4% in 2022.

What state has the worst debt?

The report found that the California state government carries more debt than any other state with $497 billion in liability. The findings stem from 2023, the most recent year for which complete data was available, according to the Reason Foundation, a think tank with offices in Washington, D.C., and Los Angeles.

What states are operating at a surplus?

Alaska accumulated the largest 15-year surplus (126.9%), followed by North Dakota (124.6%), Wyoming (120.4%), Utah (113.3%), and New Mexico (110.3%). Montana was the only state to end each of the 15 years examined with a surplus.

What country owns most of the US debt?

Japan holds the most U.S. debt, followed by China and the United Kingdom, though figures fluctuate; Japan's holdings have been over $1 trillion, significantly more than China's, making it the largest foreign holder of U.S. Treasury securities as of 2024-2025 data, according to sources like the Peter G. Peterson Foundation, USAFacts, and Nasdaq.