Mark Cuban predicts painful red rural recession — here are 4 states he says should brace for economic fallout

Time of India

03-06-2025

Billionaire entrepreneur and Shark Tank co-host
Mark Cuban
is warning of tough times ahead for people of
rural America
, as per a report. In a recent post on the social media platform BlueSky, Cuban predicted what he's calling a 'Red Rural Recession', which is a looming
economic downturn
he believes will hit Republican-leaning rural states the hardest if US president Donald Trump's federal budget cuts continue, according to GobankingRates report.
Mark Cuban's Warning
According to Cuban, the small towns are being disproportionately impacted by 'firings, cancelling of grants and contracts with companies, the closing of offices,' quoted GoBankingRates report.
His warning comes amid growing concern that budget cuts coming through the Department of Government Efficiency (DOGE) may be affecting the people that voted for Trump to come back to power.
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Here are four states Cuban says are especially vulnerable to the fallout, as compiled by GobaningRates:
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1. West Virginia
This state relies heavily on federal support, almost half of its annual budget comes from Washington, as per the report. But this year, the Trump administration slashed $500 million in funding for food banks that was supposed to come through the Local Food Purchase Assistance Cooperative Agreement Program, as per a Reuters report.
According to GobankingRates, a big government spending bill passed in March also left
West Virginia
without about $109 million in funds that were sought by the state's congressional delegation.
2. Leavenworth, Kansas
The state is going through a similar condition once again, as
Kansas
took a major hit during Trump's previous trade war, and now a $750,000 federal agricultural grant meant to support farm expansion is reportedly stalled, according to the Washington Post.
To make matters worse, the administration has reduced $1 billion from two key programs that helped supply locally sourced produce and meat to schools and food banks across the country, reported GoBankingRates report.
3. Pennsylvania
According to the report, much of
Pennsylvania
is rural, especially in the western and southwestern regions. These areas have been impacted by cancelled federal funding as the Environmental Protection Agency pulled at least $2 million in grants meant for community-based efforts like air and water quality monitoring and food security initiatives, according to Axios.
4. Kentucky
Kentucky
also gets close to half of its annual budget from federal dollars, as per Reuters. But the proposed federal budget cuts will hamper many programs like SNAP and Medicaid, plus environmental and clean energy funding, that are important to rural counties, reported GoBankingRates.
FAQs
What is the "
Red Rural Recession
" Mark Cuban is talking about?
It's a term Cuban is using to describe a potential economic downturn in rural, Republican-leaning areas if Trump's government budget cuts continue.
Why does Cuban think rural towns are at risk?
He says small towns are being hit with job losses, canceled grants, and office closures, making life harder for already struggling communities.