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    Home » To fight Trump’s funding freezes, states try a new gambit: Withholding federal payments
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    To fight Trump’s funding freezes, states try a new gambit: Withholding federal payments

    morshediBy morshediJune 29, 2025No Comments6 Mins Read
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    To fight Trump’s funding freezes, states try a new gambit: Withholding federal payments
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    Democratic legislators principally in blue states are trying to fight back against President Donald Trump’s efforts to withhold funding from their states with payments that goal to offer the federal authorities a style of its personal drugs.

    The novel and untested strategy — up to now launched in Connecticut, Maryland, New York and Wisconsin — would primarily enable states to withhold federal funds if lawmakers decide the federal authorities is delinquent in funding owed to them. Democrats in Washington state mentioned they’re within the strategy of drafting the same measure.

    These payments nonetheless have a protracted option to go earlier than changing into regulation, and authorized consultants mentioned they’d face obstacles. However they mark the newest efforts by Democrats on the state stage to counter what they are saying is an enormous overreach by the Trump administration to stop offering federal funding for an array of packages which have helped states pay for well being care, meals help and environmental protections.

    “Trump is illegally withholding funds which were beforehand accepted,” mentioned David Moon, the Democratic majority chief in Maryland’s Home of Delegates. “With out these funds, we’re going to see Maryland residents severely harmed — we would have liked extra choices on the desk for the way Maryland might reply and shield its residents.”

    Moon mentioned the 2 payments are in response to varied Trump actions which have withheld federal funding for packages that pay to help with kids’s psychological well being and flood wall protections. He in contrast the payments he’s launched to conventional “collections” actions that one would take in opposition to a “deadbeat debtor.” Even when they had been to not transfer ahead, Moon mentioned the payments would assist to result in an audit and accounting of federal cash to the state.

    Early in his second time period, Trump’s Division of Authorities Effectivity unilaterally froze billions of {dollars} in funding for programs that states rely on. He’s additionally threatened to withhold federal funding from states that implement insurance policies he politically disagrees with, together with “sanctuary” insurance policies for undocumented immigrants, although some such freezes have been halted by courts.

    A Trump White Home spokesperson didn’t reply to questions for this story.

    Wisconsin state Rep. Renuka Mayadev, a Democrat, launched two near-identical payments that she mentioned would search to compel the federal authorities to launch cash it has withheld that had beforehand been paying for Division of Agriculture packages that assist farmers, and for baby care facilities that principally serve low-income households.

    “We’ve seen the Trump administration is willfully breaking the regulation by holding again federal funds to which Wisconsinites are legally entitled. So these payments are actually about offering for a authorized treatment and defending Wisconsinites,” she mentioned.

    In all 4 states, the payments direct state officers to withhold funds owed by the states to the federal authorities if federal companies have acted in contravention of judicial orders or have taken illegal actions to withhold funds beforehand appropriated by Congress. Funds accessible for withholding embody the federal taxes collected from the paychecks of state workers, in addition to grant funds owed again to the federal authorities.

    In Wisconsin, the payments are unlikely to maneuver ahead as a result of Republicans management each chambers of the Legislature. However the trajectory of the payments in Maryland, New York and Connecticut — the place Democrats management the legislatures and governorships — is an open query.

    The identical is true in Washington, the place Democratic lawmakers plan to introduce related payments subsequent session.

    “It’s a novel idea,” mentioned Washington state Sen. Manka Dhingra. “I don’t suppose states have ever been on this place earlier than … the place there’s somebody making arbitrary choices on what to offer funding for and what to not present funding for, opposite to present guidelines and legal guidelines and congressional allocation of funds.”

    Authorized consultants have raised substantial questions concerning the hurdles such payments would face in the event that they had been enacted.

    For one, they mentioned, the U.S. Structure’s supremacy clause clearly provides the federal authorities priority over states, which might complicate authorized arguments defending such legal guidelines — regardless that it stays an open authorized query whether or not the chief department has the ability to single-handedly management funding.

    Extra quick sensible obstacles, they defined, stem from the truth that there’s vastly more cash flowing from the federal authorities to the states than the opposite method round.

    “So withholding state funds to the federal authorities, even when there have been no different obstacles, isn’t prone to change very a lot,” mentioned David Tremendous, a professor on the Georgetown College Regulation Heart who makes a speciality of administrative and constitutional regulation.

    Tremendous added that states withholding cash might probably additional worsen the standing of packages affected by federal cuts.

    “There’s additionally the potential that a number of the cash going to the federal authorities needs to be paid as a situation for the state receiving one or one other sort of profit for itself or for its folks,” he mentioned. “The federal authorities might say, ‘You didn’t make this fee, subsequently you’re out of this program utterly.’”

    However that doesn’t imply states, working within the present hostile political setting, shouldn’t attempt, mentioned Jon Michaels, a professor on the UCLA College of Regulation who specializes within the separation of powers and presidential energy.

    “The place are you able to attempt to claw again cash in numerous methods? Not as a result of it’s going to make an enormous materials distinction for the state treasury or for the folks of the state, however simply to primarily present the federal authorities like, ‘Hey, we all know what you’re doing and we don’t prefer it,’” he mentioned. “States should be enterprising and inventive and considerably feisty in determining their very own scope of authority and the methods wherein they will problem the regulation.”

    However one other potential disadvantage is one foreseen by the Democratic lawmakers themselves: additional retribution from Trump.

    “We’d all be silly to not acknowledge that the feds maintain extra playing cards than states do with respect to the finances,” mentioned Moon, the Maryland legislator. “There’s definitely a danger of retaliation by the White Home.”



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