I haven't seen a good comparison, and you have to be careful not to confuse correlation with causation, but there seems to be a pretty strong connection between places that are really good for businesses and really bad for the people living there.
And it seems like a bad sign that Arkansas gets a grade of D- on livability, while being one of the most improved states.
Could be some really bad shit comin'.
Key Points
- Crime rates, air quality, healthcare access, worker protections, and civil rights laws are among factors that can hurt a state in quality of life rankings.
- With more states touting their quality of life when trying to attract business, CNBC is giving it more weight in the 2026 America’s Top States for Business rankings.
- Based on the data, quality of life in some states does not make the grade.
“Quality of place, especially investing in quality of place, is the top thing you can do for talent attraction and retention,” said site selection consultant Larry Gigerich, managing executive director of Ginovus in Indianapolis, and chairman of the Site Selectors Guild.
CNBC is placing increasing emphasis on Quality of Life, one of the 10 categories of competitiveness in our annual America’s Top States for Business study. It is our annual ranking of every state’s business climate, now in its 20th year. Under this year’s methodology, the category makes up 11.6% of a state’s overall score, up from about ten percent last year.
To score the states for quality of life, we use hard data on factors like crime rates, air quality and healthcare. We also consider the cost and availability of childcare, inclusiveness of state laws, and reproductive rights. Some states offer exemplary quality of life. But these ten states do not make the grade.
Arkansas
- Strengths: Childcare, Air Quality
- Weaknesses: Crime, Health, Inclusiveness
- 2026 Quality of Life score: 103 out of 290 points (Top States grade: D–)
Arkansas is a most-improved state overall this year in our annual rankings, but nearly 19% of its households lack the resources to put adequate food on the table, placing the Natural State dead last for food insecurity, according to the United Health Foundation. Last year, Gov. Sarah Huckabee Sanders signed legislation guaranteeing free breakfast in public schools, but there is clearly more work to do. Arkansas also has one of the highest violent crime rates in the nation, according to FBI statistics, and among the weakest protections against discrimination, according to the National Conference of State Legislatures.
Oklahoma
Oklahoma
- Strengths: Childcare, Air Quality
- Weaknesses: Reproductive Rights, Worker Protections
- 2026 Quality of Life score: 103 out of 290 points (Top States grade: D–)
Oklahoma imposes one of America’s strictest bans on abortion, even though studies, including one by the National Bureau of Economic Research last year, found abortion bans increase net migration outflows, particularly among single adults. The Sooner State ranked 40th for worker protections last year, according to Oxfam America, which said that the state’s $7.25 minimum wage covers only about 19% of the cost of living for a family of four, and noted that state law prohibits municipalities from setting their minimum wages any higher. A ballot measure last month to have voters approve a minimum wage increase failed.
Alabama
Alabama
- Strengths: Childcare, Air Quality
- Weaknesses: Worker Protections, Health, Inclusiveness
- 2026 Quality of Life score: 99 out of 290 points (Top States grade: D–)
Alabama ranks dead last for mental health providers per capita, even though nearly a quarter of residents have been told by a health professional that they have a depressive disorder. Alabama also ranks at the bottom for its worker protections, which include only two of the 16 measures that Oxfam America considers critical (mandating equal pay by gender and race, and restricting access to salary history). Workers lack other basic protections including mandatory paid sick leave and protections against sexual harassment. Alabama is one of five states with no public accommodation law protecting non-disabled people against discrimination, according to the National Conference of State Legislatures.
Missouri
Missouri
- Strengths: Air Quality, Worker Protections
- Weaknesses: Crime, Health, Inclusiveness
- 2026 Quality of Life score: 98 out of 290 points (Top States grade: D–)
With 462 violent offenses per 100,000 residents in 2024, according to FBI crime statistics, Missouri is among America’s most violent states. The Show-Me State also ranked in the top 10 for firearm deaths last year. In June, Gov. Mike Kehoe signed a sweeping crime bill aimed at helping to get the situation under control. It includes tougher sentences, a greater ability to charge juveniles as adults, and several new offenses involving cyberstalking and the use of drones.
Utah
Utah
- Strength: Crime
- Weaknesses: Health, Childcare, Worker Protections, Air Quality
- 2026 Quality of Life score: 95 out of 290 points (Top States grade: F)
For all its natural beauty, Utah is not the healthiest place to live, ranking No. 47 for primary care providers. Air quality leaves something to be desired, with high ozone levels, according to the American Lung Association. The Beehive State gets its nickname from the industriousness of its workers. But the state doesn’t do much to make their lives easier. The state minimum wage of $7.25 an hour covers just 16.5% of the cost of living for a family of four, according to Oxfam America. And Utah has just 513 licensed childcare centers in a state with 3.5 million people, according to Child Care Aware of America.
Georgia
Georgia
- Strength: Childcare
- Weaknesses: Inclusiveness, Health, Worker Protections
- 2026 Quality of Life score: 89 out of 290 points (Top States grade: F)
Georgia offers few protections for LGBTQ+ people, making it one of America’s least inclusive states.
“Georgia still remains a state where there is no place for hate, and I can assure all Georgians of that today,” Republican Gov. Brian Kemp said in April, when he signed a bill aimed at protecting religious freedom.
But critics feared the law could be used to permit other types of discrimination, especially because Georgia is another of the five states with no public accommodation law protecting non-disabled people.
The Peach State offers minimal worker protections, particularly when it comes to the right to organize.
Louisiana
“Georgia still remains a state where there is no place for hate, and I can assure all Georgians of that today,” Republican Gov. Brian Kemp said in April, when he signed a bill aimed at protecting religious freedom.
But critics feared the law could be used to permit other types of discrimination, especially because Georgia is another of the five states with no public accommodation law protecting non-disabled people.
The Peach State offers minimal worker protections, particularly when it comes to the right to organize.
Louisiana
- Strengths: Childcare, Air Quality
- Weaknesses: Crime, Inclusiveness, Reproductive Rights
- 2026 Quality of Life score: 89 out of 290 points (Top States grade: F)
Louisiana has the nation’s fifth-highest violent crime rate. The state recorded 495 homicides in 2024, and it has the nation’s second-highest firearm death rate after neighboring Mississippi. Louisiana has among the nation’s strictest abortion bans, enshrined in the state constitution. Gov. Jeff Landry, a Republican, has been on a rampage against diversity, equity and inclusion policies, which he calls “woke” and discriminatory.
In January, he announced on Facebook that he was removing affirmative action requirements from the state’s civil service code, to be replaced by hiring “strictly on the basis of merit.” And he asked the U.S. Department of Education’s civil rights division to expand its investigation of DEI policies at colleges and universities in the Pelican State.
While Landry contends the changes make the state “color blind,” critics say they freeze in place the disadvantages minority Louisianans continue to face.
Indiana
In January, he announced on Facebook that he was removing affirmative action requirements from the state’s civil service code, to be replaced by hiring “strictly on the basis of merit.” And he asked the U.S. Department of Education’s civil rights division to expand its investigation of DEI policies at colleges and universities in the Pelican State.
While Landry contends the changes make the state “color blind,” critics say they freeze in place the disadvantages minority Louisianans continue to face.
Indiana
- Strength: Crime
- Weaknesses: Childcare, Air Quality, Health
- 2026 Quality of Life score: 82 out of 290 points (Top States grade: F)
With just 779 licensed childcare facilities in a state with nearly 7 million people, Indiana finishes at the bottom for childcare availability on a per capita basis. And what is available is expensive, eating up 15% of the median income for a household with two working parents in the Hoosier State. In June, Indiana’s childcare agency unveiled a sweeping new policy proposal aimed at expanding access by, among other things, easing licensing requirements. Critics allege the proposal sacrifices quality.
Texas
Texas
- Strengths: Childcare, Air Quality
- Weaknesses: Health, Crime, Inclusiveness, Worker Protections, Reproductive Rights
- 2026 Quality of Life score: 78 out of 290 points (Top States grade: F)
While Texas continues to lead the nation in attracting workers, those workers are finding a broad array of challenges when they get there. The Lone Star State has America’s highest rate of people without health insurance at 16.7%, according to the United Health Foundation, more than twice the national average. More than 17% of Texas adults said they had to forgo a doctor visit that they needed in the past year because of the cost. Even those who do have health insurance can have trouble finding a doctor. The state finishes dead last in primary care physicians per capita.
In May, Republican Gov. Greg Abbott announced $56 million in federal grants to rural hospitals. “We will deliver state-of-the-art treatment for everyone who calls Texas home,” the governor said in a statement. Some 31 million people call Texas home, so the grants amount to about $1.80 apiece, or about $350,000 for each of the state’s nearly 160 rural hospitals.
America’s Worst Place to Live in 2026: Tennessee
“The nuclear family, consisting of one husband, one wife, and any biological, adopted, or fostered children, is God’s design for familial structure and has been the bedrock of society since the creation of the world,” the resolution states.
Its sponsors deliberately timed the observance to coincide with the month when Tennessee’s more than 300,000 LGBTQ+ people celebrate Pride.
Inclusiveness isn’t the only area where the Volunteer State falls short. Tennessee also has one of the highest violent crime rates in the nation, according to FBI statistics. And it has the third-highest rate of drug deaths, according to the United Health Foundation.
The 10 worst state economies in America in 2026
Key Points
States know it, too, so many continue to market themselves as economic havens.
“Companies can thrive in a world-class business environment with the most diverse economy in the nation,” Illinois’ economic development site proclaims.
“In Michigan, you’ll find a global network of leading companies across numerous industries,” its state site notes. “From Fortune 500 companies to fast-growing startups and hundreds of thousands of small businesses, companies of all sizes are driving economic opportunity in every corner of our state.”
CNBC analyzes every state’s marketing pitch as part of our annual America’s Top States for Business study. This year, we found the economy to be the second most frequently mentioned attribute (after infrastructure). So, under our methodology, the Economy category carries the second-heaviest weight in 2026—worth 16.6% of a state’s total score.
To measure each state’s economy, we consider job growth, economic growth, and the number of major companies headquartered in the state. We also measure each state’s fiscal health, including its budget situation, its long-term obligations and its debt ratings, as well as the health of the residential real estate market. We also consider the impact of tariffs, the potential impact of federal budget cuts, and small business survival rates.
Some states clearly deliver on their economic promises, but these are not those states. Here are America’s worst state economies in 2026.
10. Oklahoma
Oklahoma is among the most dependent on federal funding, according to the National Association of State Budget Officers. More than 40% of state spending in Oklahoma comes from Washington, D.C., putting the state in the top 10 for reliance on the feds.
“That’s not rugged individualism; that’s a subsidy,” wrote Shiloh Kantz of the Oklahoma Policy Institute in August. “And it means that the hard fiscal choices some of our leaders brag about are possible only because someone else is footing the bill.”
It also leaves the Sooner State vulnerable to potential federal cuts.
Economic growth was moderate last year, which is leaving the housing market under some stress.
2026 Economy score: 172 out of 415 points (Top States grade: D)
Real GDP (2025): $213.5 billion (+1.5%)
Debt Rating and outlook (Moody’s): Aa1, Stable
Share of state spending from federal funds: 40.4%
International goods trade: $24.9 billion (9% of GDP)
Major corporations: Paycom Software, ONEOK, The Williams Companies
9. North Dakota
The days of North Dakota’s oil frenzy back in the early 2000s and 2010s are long gone, and even the surge in oil prices at the start of the Iran war earlier this year was not enough to get companies to resume drilling in the Bakken Shale in a meaningful way. Economic growth in the Peace Garden State was the lowest in the nation last year. New business formations were also among the lowest. One thing the state did right was to build up its reserves during the flush times. The state could last nearly a year on its total fund balance if all else failed, according to the Pew Charitable Trusts.
2026 Economy score: 171 out of 415 points (Top States grade: D)
Real GDP (2025): $63.6 billion (+0.3%)
Debt Rating and outlook (Moody’s): Aa1, Stable
Share of state spending from federal funds: 34.5%
International goods trade: $14.5 billion (17.6% of GDP)
Major corporations: None
8. New Hampshire
New Hampshire’s fiscal situation is anything but rock solid. The Granite State’s spending outpaces revenues, according to the most recent financial disclosures. New Hampshire’s public employee retirement systems are underfunded to the tune of more than $5.5 billion, among the worst pension gaps in the country. Job growth is tepid, and the survival rate for new businesses is among the lowest in the country, according to data provided to CNBC by business research firm Construction Coverage. The state’s economy is growing at a healthy pace, however, with the help of new residents fleeing higher taxes in neighboring states like Massachusetts.
2026 Economy score: 170 out of 415 points (Top States grade: D)
Real GDP (2025): $96.87 billion (+2.1%)
Debt Rating and outlook (Moody’s): Aa1, Stable
Share of state spending from federal funds: 39.4%
International goods trade: $17.2 billion (13.7% of GDP)
Major corporation: Iron Mountain
7. Alaska
Alaska is heavily dependent on the federal government, which accounts for more than 45% of state spending. Only Louisiana (48.6%) and Indiana (46.3%) rely more on Uncle Sam. The Last Frontier also has among the largest percentages of federal employees in its workforce. Alaska did turn in solid economic growth last year, even before the surge in oil prices this past February. And optimism is growing as the Trump administration moves to expand drilling in the North Slope and pursues an 807-mile natural gas pipeline to deliver gas from Prudhoe Bay on the North Slope to the Kenai Peninsula and the world.
“Alignment of state and federal leadership means potential for major moves in Alaska’s mining and oil and gas development,” wrote state economist Karinne Wiebold in January, though the pipeline — and any economic windfall that comes with it — is still years away.
2026 Economy score: 169 out of 415 points (Top States grade: D–)
Real GDP (2025): $57.5 billion (+2.8%)
Debt Rating and outlook (Moody’s): Aa2, Stable
Share of state spending from federal funds: 45.3%
International goods trade: $9.8 billion (13.1% of GDP)
Major corporations: None
6. South Dakota
Economic growth was modest last year in South Dakota, but to hear state officials tell it, things are looking up — and they are not referring to the Mount Rushmore State’s most famous, lofty attraction. Earlier this year, in her first-quarter economic update, Secretary of State Monae Johnson pointed to nearly 4,000 new business filings in the quarter, “surpassing first-quarter filing totals from each of the previous six years.” She did not mention that the comparisons were relatively easy. According to Census data, South Dakota ranked 35th in new business formations per capita last year, growing only about 4% from 2024. Once businesses do get off the ground in South Dakota, however, they stand a good chance of surviving. The state ranks No. 15 in Construction Coverage’s small business survival index.
2026 Economy score: 168 out of 415 points (Top States grade: D–)
Real GDP (2025): $58.5 billion (+1.4%)
Debt Rating and outlook (Moody’s): Aaa, Stable
Share of state spending from federal funds: 42.4%
International goods trade: $4.88 billion (6% of GDP)
Major corporations: None
5. Kansas
The housing market in Kansas is a study in contrasts. Inventory is tight, with around a two-month supply of homes on the market as of May, according to Redfin. Yet, price appreciation has been modest, and seller gains have been weak, according to ATTOM Data Solutions. It all means that the real estate market is not the economic engine it might normally be. One reason may be that the Sunflower State is not doing well in attracting workers, according to data from labor market analytics firm Lightcast. Job growth in the state is weak, though overall economic growth was reasonably good last year.
2026 Economy score: 162 out of 415 points (Top States grade: D–)
Real GDP (2025): $185.1 billion (+2%)
Debt Rating and outlook (Moody’s): Aa2, Stable
Share of state spending from federal funds: 27.4%
International goods trade: $29.4 billion (12.2% of GDP)
Major corporations: None
4. Louisiana
Louisiana faces serious exposure to a pair of stiff headwinds in the economy: tariffs, and a shrinking federal government in a state that disproportionately relies on Washington. No state has more of its spending funded by the federal government. And with nearly one-third of the Pelican State’s GDP made up of international goods trade, Louisiana’s tariff costs have skyrocketed, according to Washington, D.C.-based research firm Trade Partnership Worldwide, which provided data to CNBC. Perhaps as a result, Louisiana has seen some of the weakest economic growth in the nation. Overall job growth has been strong but uneven. The latest forecast from Louisiana State University’s E.J. Ourso College of Business, through the first quarter of next year, calls for more job growth, “but employment in only 4 of the state’s metro areas is forecast to grow at a rate of 1% or greater.” The forecast calls for modest improvement in GDP, growing at a rate of about 1.5% into the beginning of 2027.
2026 Economy score: 160 out of 415 points (Top States grade: D–)
Real GDP (2025): $259.9 billion (+1.1%)
Debt Rating and outlook (Moody’s): Aa2, Stable
Share of state spending from federal funds: 48.6%
International goods trade: $109.4 billion (32.2% of GDP)
Major corporations: Pool, Entergy
3. West Virginia
West Virginia is not handling the transition from a coal-centered economy to whatever comes next well. The Mountain State’s labor force participation rate is the lowest in the nation, even as prices rise — putting more and more everyday needs out of reach. Economic growth and job growth rank near the bottom. One potential bright spot — and maybe a lifeline — is the state’s housing market. Inventory is near optimum, affordability is good, and yet prices are appreciating well.
2026 Economy score: 146 out of 415 points (Top States grade: F)
Real GDP (2025): $83.2 billion (+0.5%)
Debt Rating and outlook (Moody’s): Aa2, Positive
Share of state spending from federal funds: 20.5%
International goods trade: $9.5 billion (8.7% of GDP)
Major corporations: None
2. Maryland
Economic growth and job growth nearly flatlined in Maryland over the past year. The Old Line State’s deep connection with the federal government next door has a lot to do with that, as Gov. Wes Moore pointed out in his State of the State address in February.
“In just the last year, the federal government has fired around 25,000 Marylanders who have federal jobs in our state alone,” said Moore, a Democrat. “It’s the biggest federal job cut of any state in the country.”
But the Maryland Chamber of Commerce also blames “high costs, unpredictable taxes, and growing regulatory burdens.”
“If we want a stronger future, we must prioritize an economy that supports business investment, expansion, and long-term growth,” the organization said.
Whatever the reason, Maryland finds itself in a deep hole in 2026, with no easy way out of it.
2026 Economy score: 143 out of 415 points (Top States grade: F)
Real GDP (2025): $436.17 billion (+0.7%)
Debt rating and outlook (Moody’s): Aa1, Stable
Share of state spending from federal funds: 31.2%
International goods trade: $56.6 billion (10% of GDP)
Major corporations: McCormick and Company, Lockheed Martin, Marriott International
1. Rhode Island
To hear Rhode Island Gov. Dan McKee tell it, the state is about to have its moment. McKee, a Democrat, writes on a website devoted to what he calls the RI 2030 Plan that “National shifts in defense spending, the return of advanced manufacturing, and rapid technological innovation are aligning with Rhode Island’s long-standing strengths in defense, ocean technology, and the life sciences.”
But if, indeed, the Ocean State’s ship is about to come in, it is taking a long time getting there. In the meantime, economic growth was the ninth weakest in the country last year. Foreign direct investment was practically nonexistent, as were new business formations.
Rhode Island is also especially vulnerable to tariffs. Costs skyrocketed last year in a state where international goods trade makes up over 18% of nominal GDP.
2026 Economy score: 121 out of 415 points (Top States grade: F)
Real GDP (2025): $64.2 billion (+1.1%)
Debt rating and outlook (Moody’s): Aa2, Stable
Share of state spending from federal funds: 38.5%
International goods trade: $15.5 billion (18.5% of GDP)
Major corporations: Hasbro, Citizens Financial Group, CVS Health
In May, Republican Gov. Greg Abbott announced $56 million in federal grants to rural hospitals. “We will deliver state-of-the-art treatment for everyone who calls Texas home,” the governor said in a statement. Some 31 million people call Texas home, so the grants amount to about $1.80 apiece, or about $350,000 for each of the state’s nearly 160 rural hospitals.
America’s Worst Place to Live in 2026: Tennessee
- Strength: Air Quality
- Weaknesses: Crime, Inclusiveness, Worker Protections
- 2026 Quality of Life score: 64 out of 290 points (Top States grade: F)
“The nuclear family, consisting of one husband, one wife, and any biological, adopted, or fostered children, is God’s design for familial structure and has been the bedrock of society since the creation of the world,” the resolution states.
Its sponsors deliberately timed the observance to coincide with the month when Tennessee’s more than 300,000 LGBTQ+ people celebrate Pride.
Inclusiveness isn’t the only area where the Volunteer State falls short. Tennessee also has one of the highest violent crime rates in the nation, according to FBI statistics. And it has the third-highest rate of drug deaths, according to the United Health Foundation.
Key Points
- While fears of a recession have subsided, lingering concerns about inflation, geopolitical tensions and an AI bubble have companies considering the local economy when deciding where to set up shop.
- State economic development organizations are touting their states’ economic strength and stability in their pitches to lure businesses.
- Economy is a key category in CNBC’s America’s Top States for Business study, now in its 20th year. It finds some states do better than others — and some do substantially worse.
States know it, too, so many continue to market themselves as economic havens.
“Companies can thrive in a world-class business environment with the most diverse economy in the nation,” Illinois’ economic development site proclaims.
“In Michigan, you’ll find a global network of leading companies across numerous industries,” its state site notes. “From Fortune 500 companies to fast-growing startups and hundreds of thousands of small businesses, companies of all sizes are driving economic opportunity in every corner of our state.”
CNBC analyzes every state’s marketing pitch as part of our annual America’s Top States for Business study. This year, we found the economy to be the second most frequently mentioned attribute (after infrastructure). So, under our methodology, the Economy category carries the second-heaviest weight in 2026—worth 16.6% of a state’s total score.
To measure each state’s economy, we consider job growth, economic growth, and the number of major companies headquartered in the state. We also measure each state’s fiscal health, including its budget situation, its long-term obligations and its debt ratings, as well as the health of the residential real estate market. We also consider the impact of tariffs, the potential impact of federal budget cuts, and small business survival rates.
Some states clearly deliver on their economic promises, but these are not those states. Here are America’s worst state economies in 2026.
10. Oklahoma
Oklahoma is among the most dependent on federal funding, according to the National Association of State Budget Officers. More than 40% of state spending in Oklahoma comes from Washington, D.C., putting the state in the top 10 for reliance on the feds.
“That’s not rugged individualism; that’s a subsidy,” wrote Shiloh Kantz of the Oklahoma Policy Institute in August. “And it means that the hard fiscal choices some of our leaders brag about are possible only because someone else is footing the bill.”
It also leaves the Sooner State vulnerable to potential federal cuts.
Economic growth was moderate last year, which is leaving the housing market under some stress.
2026 Economy score: 172 out of 415 points (Top States grade: D)
Real GDP (2025): $213.5 billion (+1.5%)
Debt Rating and outlook (Moody’s): Aa1, Stable
Share of state spending from federal funds: 40.4%
International goods trade: $24.9 billion (9% of GDP)
Major corporations: Paycom Software, ONEOK, The Williams Companies
9. North Dakota
The days of North Dakota’s oil frenzy back in the early 2000s and 2010s are long gone, and even the surge in oil prices at the start of the Iran war earlier this year was not enough to get companies to resume drilling in the Bakken Shale in a meaningful way. Economic growth in the Peace Garden State was the lowest in the nation last year. New business formations were also among the lowest. One thing the state did right was to build up its reserves during the flush times. The state could last nearly a year on its total fund balance if all else failed, according to the Pew Charitable Trusts.
2026 Economy score: 171 out of 415 points (Top States grade: D)
Real GDP (2025): $63.6 billion (+0.3%)
Debt Rating and outlook (Moody’s): Aa1, Stable
Share of state spending from federal funds: 34.5%
International goods trade: $14.5 billion (17.6% of GDP)
Major corporations: None
8. New Hampshire
New Hampshire’s fiscal situation is anything but rock solid. The Granite State’s spending outpaces revenues, according to the most recent financial disclosures. New Hampshire’s public employee retirement systems are underfunded to the tune of more than $5.5 billion, among the worst pension gaps in the country. Job growth is tepid, and the survival rate for new businesses is among the lowest in the country, according to data provided to CNBC by business research firm Construction Coverage. The state’s economy is growing at a healthy pace, however, with the help of new residents fleeing higher taxes in neighboring states like Massachusetts.
2026 Economy score: 170 out of 415 points (Top States grade: D)
Real GDP (2025): $96.87 billion (+2.1%)
Debt Rating and outlook (Moody’s): Aa1, Stable
Share of state spending from federal funds: 39.4%
International goods trade: $17.2 billion (13.7% of GDP)
Major corporation: Iron Mountain
7. Alaska
Alaska is heavily dependent on the federal government, which accounts for more than 45% of state spending. Only Louisiana (48.6%) and Indiana (46.3%) rely more on Uncle Sam. The Last Frontier also has among the largest percentages of federal employees in its workforce. Alaska did turn in solid economic growth last year, even before the surge in oil prices this past February. And optimism is growing as the Trump administration moves to expand drilling in the North Slope and pursues an 807-mile natural gas pipeline to deliver gas from Prudhoe Bay on the North Slope to the Kenai Peninsula and the world.
“Alignment of state and federal leadership means potential for major moves in Alaska’s mining and oil and gas development,” wrote state economist Karinne Wiebold in January, though the pipeline — and any economic windfall that comes with it — is still years away.
2026 Economy score: 169 out of 415 points (Top States grade: D–)
Real GDP (2025): $57.5 billion (+2.8%)
Debt Rating and outlook (Moody’s): Aa2, Stable
Share of state spending from federal funds: 45.3%
International goods trade: $9.8 billion (13.1% of GDP)
Major corporations: None
6. South Dakota
Economic growth was modest last year in South Dakota, but to hear state officials tell it, things are looking up — and they are not referring to the Mount Rushmore State’s most famous, lofty attraction. Earlier this year, in her first-quarter economic update, Secretary of State Monae Johnson pointed to nearly 4,000 new business filings in the quarter, “surpassing first-quarter filing totals from each of the previous six years.” She did not mention that the comparisons were relatively easy. According to Census data, South Dakota ranked 35th in new business formations per capita last year, growing only about 4% from 2024. Once businesses do get off the ground in South Dakota, however, they stand a good chance of surviving. The state ranks No. 15 in Construction Coverage’s small business survival index.
2026 Economy score: 168 out of 415 points (Top States grade: D–)
Real GDP (2025): $58.5 billion (+1.4%)
Debt Rating and outlook (Moody’s): Aaa, Stable
Share of state spending from federal funds: 42.4%
International goods trade: $4.88 billion (6% of GDP)
Major corporations: None
5. Kansas
The housing market in Kansas is a study in contrasts. Inventory is tight, with around a two-month supply of homes on the market as of May, according to Redfin. Yet, price appreciation has been modest, and seller gains have been weak, according to ATTOM Data Solutions. It all means that the real estate market is not the economic engine it might normally be. One reason may be that the Sunflower State is not doing well in attracting workers, according to data from labor market analytics firm Lightcast. Job growth in the state is weak, though overall economic growth was reasonably good last year.
2026 Economy score: 162 out of 415 points (Top States grade: D–)
Real GDP (2025): $185.1 billion (+2%)
Debt Rating and outlook (Moody’s): Aa2, Stable
Share of state spending from federal funds: 27.4%
International goods trade: $29.4 billion (12.2% of GDP)
Major corporations: None
4. Louisiana
Louisiana faces serious exposure to a pair of stiff headwinds in the economy: tariffs, and a shrinking federal government in a state that disproportionately relies on Washington. No state has more of its spending funded by the federal government. And with nearly one-third of the Pelican State’s GDP made up of international goods trade, Louisiana’s tariff costs have skyrocketed, according to Washington, D.C.-based research firm Trade Partnership Worldwide, which provided data to CNBC. Perhaps as a result, Louisiana has seen some of the weakest economic growth in the nation. Overall job growth has been strong but uneven. The latest forecast from Louisiana State University’s E.J. Ourso College of Business, through the first quarter of next year, calls for more job growth, “but employment in only 4 of the state’s metro areas is forecast to grow at a rate of 1% or greater.” The forecast calls for modest improvement in GDP, growing at a rate of about 1.5% into the beginning of 2027.
2026 Economy score: 160 out of 415 points (Top States grade: D–)
Real GDP (2025): $259.9 billion (+1.1%)
Debt Rating and outlook (Moody’s): Aa2, Stable
Share of state spending from federal funds: 48.6%
International goods trade: $109.4 billion (32.2% of GDP)
Major corporations: Pool, Entergy
3. West Virginia
West Virginia is not handling the transition from a coal-centered economy to whatever comes next well. The Mountain State’s labor force participation rate is the lowest in the nation, even as prices rise — putting more and more everyday needs out of reach. Economic growth and job growth rank near the bottom. One potential bright spot — and maybe a lifeline — is the state’s housing market. Inventory is near optimum, affordability is good, and yet prices are appreciating well.
2026 Economy score: 146 out of 415 points (Top States grade: F)
Real GDP (2025): $83.2 billion (+0.5%)
Debt Rating and outlook (Moody’s): Aa2, Positive
Share of state spending from federal funds: 20.5%
International goods trade: $9.5 billion (8.7% of GDP)
Major corporations: None
2. Maryland
Economic growth and job growth nearly flatlined in Maryland over the past year. The Old Line State’s deep connection with the federal government next door has a lot to do with that, as Gov. Wes Moore pointed out in his State of the State address in February.
“In just the last year, the federal government has fired around 25,000 Marylanders who have federal jobs in our state alone,” said Moore, a Democrat. “It’s the biggest federal job cut of any state in the country.”
But the Maryland Chamber of Commerce also blames “high costs, unpredictable taxes, and growing regulatory burdens.”
“If we want a stronger future, we must prioritize an economy that supports business investment, expansion, and long-term growth,” the organization said.
Whatever the reason, Maryland finds itself in a deep hole in 2026, with no easy way out of it.
2026 Economy score: 143 out of 415 points (Top States grade: F)
Real GDP (2025): $436.17 billion (+0.7%)
Debt rating and outlook (Moody’s): Aa1, Stable
Share of state spending from federal funds: 31.2%
International goods trade: $56.6 billion (10% of GDP)
Major corporations: McCormick and Company, Lockheed Martin, Marriott International
1. Rhode Island
To hear Rhode Island Gov. Dan McKee tell it, the state is about to have its moment. McKee, a Democrat, writes on a website devoted to what he calls the RI 2030 Plan that “National shifts in defense spending, the return of advanced manufacturing, and rapid technological innovation are aligning with Rhode Island’s long-standing strengths in defense, ocean technology, and the life sciences.”
But if, indeed, the Ocean State’s ship is about to come in, it is taking a long time getting there. In the meantime, economic growth was the ninth weakest in the country last year. Foreign direct investment was practically nonexistent, as were new business formations.
Rhode Island is also especially vulnerable to tariffs. Costs skyrocketed last year in a state where international goods trade makes up over 18% of nominal GDP.
2026 Economy score: 121 out of 415 points (Top States grade: F)
Real GDP (2025): $64.2 billion (+1.1%)
Debt rating and outlook (Moody’s): Aa2, Stable
Share of state spending from federal funds: 38.5%
International goods trade: $15.5 billion (18.5% of GDP)
Major corporations: Hasbro, Citizens Financial Group, CVS Health
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