Federal News
States Implement Cost of Living Measures
March 20, 2026
State and local governments across the United States are actively adopting measures to address rising cost of living challenges, including tax pauses, minimum wage increases, and housing initiatives. These actions reflect a proactive approach at the state and municipal levels amid perceptions of limited federal intervention. Key states such as Georgia, California, Washington, and cities like New York are leading efforts to mitigate affordability pressures ahead of upcoming elections, signaling potential shifts in procurement priorities and funding allocations for social services and housing programs.
- Procurement professionals should anticipate increased demand for contracts related to affordable housing development, social service delivery, and wage administration support at state and local levels.
- Agencies may prioritize vendors capable of providing scalable solutions for housing infrastructure, community development, and economic assistance programs.
- This trend indicates a growing market for contractors specializing in public sector affordability initiatives, with opportunities concentrated in states like Georgia, California, and Washington.
- Organizations should evaluate how evolving state policies on cost of living adjustments could impact contract requirements, funding streams, and compliance obligations in affected jurisdictions.
Housing expenses are, typically speaking, the biggest single expense that a household will have, and itβs one of the most rapidly increasing expenses in terms of home price appreciation and in terms of rent increases over the last three to five years, so itβs a really significant issue.
— Thom Amdur, Lincoln Avenue Communities
It is a tough issue. If you look at when Joe Biden took office and where inflation was to when Donald Trump took office, and where it is now 1 theyve made a lot of progress. But theyll be the first to tell you they got more to do.
— Gov. Brian Kemp (R-Ga.)
People package their existing proposals and existing tools and levers and reframe it to be about prices. Certainly in the Biden administration, we did quite a bit of this, the Inflation Reduction Act and things like that.
— Alex Jacquez, Groundwork Collaborative
Agencies
State of Georgia, State of California, New York City, State of Washington, U.S. House of Representatives
Locations
Sources
- States Outpace Washington in Floating Cost of Living Fixes · Bloomberg Government News · Mar 20