Kansas went from leading the nation in economic growth to growing at less than half the national rate in just two quarters. That should get every Kansas policymaker’s attention.
Kansas real GDP surged 6.5 percent at an annual rate in the third quarter of 2025, the fastest growth in the country and well above the 4.4 percent U.S. rate. By the first quarter of 2026, however, Kansas real GDP growth had slowed to just 1.0 percent, compared with 2.1 percent nationally.
There’s good news in the latest Kansas economy. But these swings are a reminder that one great quarter, especially one heavily influenced by agriculture, isn’t the same thing as sustained economic growth. And sustained growth is what Kansas needs to compete for workers, families, businesses, and investment.
Kansas did outperform some neighbors in the first quarter. Colorado grew 1.4 percent, while real GDP declined 0.9 percent in Nebraska and 0.1 percent in Iowa.
Income is where Kansas really stood out. Kansas personal income increased an impressive 7.7 percent annualized in the first quarter, more than twice the 3.4 percent national rate. Kansas matched Iowa’s 7.7 percent growth, though Nebraska did even better at 8.8 percent.
That’s good news for Kansans. But we want those income gains accompanied by stronger production, productivity, and job creation so they can continue. And jobs are where I’d be most concerned.
The latest BLS numbers show Kansas had about 1.47 million nonfarm jobs in July, up just 0.4 percent from a year earlier. Construction was a bright spot at 5.0 percent growth, but the overall job market isn’t expanding quickly.
The unemployment rate was a solid 3.8 percent. But Kansas’ labor force declined from roughly 1.58 million in February to 1.56 million in July. So, yes, celebrate low unemployment. But Kansas needs more people working, starting businesses, and moving here.
That becomes even clearer when we look beyond our immediate neighbors. Kansas has roughly 3 million people, putting it in the same general class as Iowa, Arkansas, Mississippi, Nevada, and Utah. Some of those states have done a much better job attracting people and capital.
Kansas ranks only 30th in economic outlook in the latest Rich States, Poor States rankings. That’s not terrible, but Kansas shouldn’t settle for the middle of the pack.
So what should policymakers do?
I wouldn’t respond with more subsidies, targeted tax breaks, or other flawed government attempts to pick the next winning industry. Those policies favor some businesses at everyone else’s expense.
I’d start with spending.
The Responsible Kansas Budget shows state-funded spending increased from $7.2 billion in FY2005 to $22.3 billion in FY2026. Had spending followed population growth plus inflation, it would have been about $12.6 billion. That benchmark matters because population growth plus inflation roughly reflects growth in the average taxpayer’s ability to fund government. Government shouldn’t consistently grow faster than the people paying for it.
Reduce and restrain spending, then use surpluses to permanently lower income-tax rates toward zero. Reduce property taxes, regulatory, occupational-licensing, and housing barriers. Expand education freedom so children can develop the skills needed for tomorrow’s economy.
Kansas doesn’t need government to create prosperity. It needs government to provide the conditions for Kansans to create it.
Kansas has the workers, businesses, agriculture, manufacturing, energy, and communities to compete with anyone. Give Kansans more freedom to work, invest, build, and innovate, and let people prosper.
