Texas has been identified as the most financially distressed state in the United States for the second consecutive year, according to data from WalletHub. The analysis reveals that red states generally have a higher proportion of residents experiencing financial hardship compared to blue states. This trend highlights ongoing economic challenges in states with Republican leadership. The findings were widely reported on July 16 and 17, 2025, emphasizing Texas's leading position in financial distress among U.S. states.