Here's the current assessment from the National Weather Service's Climate Prediction Center:
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  Latest Seasonal Assessment -           Drought continued to slowly expand and locally intensify in a  broad area across the southern and southeastern states, the lower            Mississippi Valley, and the lower Ohio Valley northward  through Indiana and southern Michigan. Based on the Seasonal Outlook for             December 2010 - January 2011, which relies primarily on  climate anomalies typically observed during La Niña episodes, drought            persistence and broad expansion is expected from central and  southern Texas eastward along and near the Gulf Coast through the            southern Atlantic Seaboard. 
Chances for drought improvement  increase away from the coastal plains, with some improvement            forecast across the upper South, and broad-scale improvement  expected from southern portions of the middle Mississippi Valley            through the lower Ohio Valley and points north. As in areas  farther east, the drought region in northeastern Arizona is forecast            to persist and expand, covering large sections of the southern  Four Corners region by the end of February. The recently-expanded            drought across the central High Plains is also expected to  persist through this period, which is their driest time of year            climatologically. 
Farther west, limited drought improvement is  expected across central Nevada, but more substantial improvement            seems likely in western Wyoming and across the drought region  in northeast California, southern Oregon, and adjacent areas. In            Hawaii, the seasonal increase in rainfall and a modest tilt of  the odds toward a wetter than normal winter season should bring            limited improvement to the areas affected by drought, but the  large, long-term precipitation shortages recorded in these areas            will likely preclude any widespread, substantial improvement  by the end of the period.        
Forecasters: R. TinkerNext Outlook issued: December 2, 2010 at 8:30 AM EDT
Seasonal Drought Outlook Discussion
 
