The states have expanded their role in environmental protection over the past three decades and now implement most of the federal environmental statutes. With this heightened responsibility has come an increase in state financial commitments to pay for these programs and the states have met this responsibility for years. During the past few years, however, the fiscal crisis in the states, coupled with many new federal environmental rules and a lack of new federal money, has left the states with at least a $1 billion annual gap in the amounts they need to implement current federal law. These shortfalls have been documented in several studies. This situation, if not corrected, may lead to greater risks to the public from exposure to environmental hazards. The federal government should consider providing funding or other relief to the states for further implementation of federal rules.