The simple antidote to pessimism about the state of politics in Washington is to look beyond the Beltway. While many D.C. pathologies extend to the state level, there are also countless stories of policy reform that deserve more attention. In that spirit, The Post’s Editorial Board is beginning a new year-end tradition: naming our state of the year. The winner isn’t necessarily the best place in the country to live freely or start a business. Instead, it is the state that did the most to improve or otherwise act in a way worthy of emulation.
It’s inherently subjective, and several states could make a strong case. Mississippi earned praise for miraculous improvements in reading scores. Colorado continued to enact market-oriented reforms that will expand the supply of housing, and Ohio enacted a law that will transition the state to a flat income tax next year. Yet our three finalists stood out even more.
In blustery New England, New Hampshire remains a bastion of limited government, strong local control and low taxes. Gov. Kelly Ayotte (R) won last year by promising not to “Mass up” the Granite State. Her first year in power has been impressive.
New Hampshire took meaningful steps to ease a housing crisis — rolling back zoning and permitting requirements, encouraging mixed-use housing developments and streamlining the construction of accessory dwelling units. The state also became the 18th with a universal private school choice program by eliminating the income cap for its education savings accounts. Ayotte is following the formula for strong governance, but New Hampshire started from a strong baseline.
In contrast, California is one of the worst governed states in America. Democratic supermajorities in the legislature are keen to imitate European regulators. The Golden State has become the poster child for America’s inability to build, thanks to a toxic mix of radical environmentalists and strong unions. It remains one of the most overtaxed states in the country.
Enter Gov. Gavin Newsom (D). The all-but-declared 2028 presidential candidate, eager to demonstrate he’s not captive to the far left, embraced the abundance agenda that’s hot right now among pro-growth Democrats. After January’s wildfires, Newsom issued multiple executive orders to speed up recovery. He strongarmed the state Senate to pass a bill that exempts most urban housing projects from an outlandish environmental review process and preempted local zoning rules to allow dense housing near public transit stations. He established a fund to build new transmission lines and voiced support for nuclear power in a state that has long maintained a moratorium on new reactors. In education, California finally embraced phonics, which will mean fewer kids fall behind. On all this, execution will matter more than orders.
The biggest strike against California this year is that it joined the race to the bottom on mid-decade redistricting. Texas Republicans started it, and California at least put a referendum on the ballot to ask whether the state should abandon maps drawn by an independent commission in hopes of picking up five House seats for Democrats. Gerrymandering is unpredictable and doesn’t necessarily guarantee the end of democracy. But it’s an insult to the millions of Californians whose votes in the midterms have been effectively rendered moot.
This is a large part of why Indiana is The Post’s state of the year. Twenty-one principled conservatives in the state Senate resisted four months of intense threats, from primary challenges to federal funding cuts, but they never caved to demands from the Trump White House and Gov. Mike Braun (R) to redraw the congressional map. This act of political courage has emboldened others, including Maryland Senate President Bill Ferguson (D), who continues trying to fend off Gov. Wes Moore’s brazen power grab.
Critically, Indiana also made significant strides on policy. An estimated two-thirds of homeowners will pay less property taxes next year thanks to a broad overhaul in funding formulas — the sort of change a responsible state can make. Indeed, Indiana actually cut spending, not just the rate of growth, while increasing education funding. Like New Hampshire, the state dropped income limits so that next academic year, regardless of income, any student can access a state scholarship to attend a private school of their family’s choice. The legislature also removed zoning barriers that made it difficult to start charter schools. This creates competition that makes all schools better.
As new legislative sessions begin across America over the next few weeks, the competition is wide open to become the state of the year in 2026.
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