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Trump Is Threatening to Withhold Funding. Here’s How States Are Fighting Back

“It must be combated with a national campaign,” said Governor JB Pritzker of Illinois.

The Illinois’ governor is fed up with a lackluster response to Trump’s authoritarian takeover. But, like Rethink the Deal, some states and local legislators across the country are heeding the call and finding creative ways to stymie the Trump administration. States like MD,NY, WI and CT are joining the fight!

States Refuse to Be “Deadbeat Debtor Victims”

In Maryland, Delegate David Moon introduced HB 1545, a bill that would allow the state to withhold payments to the federal government if Washington fails to deliver funds already approved by Congress. Moon warned that Trump was turning the federal government into a “deadbeat debtor,” leaving Maryland scrambling to pay for children’s mental health services and flood protections without promised federal support.

The bill was introduced as an emergency measure, underscoring the urgency of protecting public health and safety. “Without these funds,” Moon said, “we are going to see Maryland residents severely harmed.” His approach reframes the fight as not just political theater but as collections action against an unreliable partner.

New York’s RECOURSE Act: Fighting Financial Bullying

In New York, Senator Jessica Ramos and Assemblymember Micah Lasher championed the RECOURSE Act, which would allow the state to withhold payments if the federal government is found delinquent. Senator Ramos framed the bill as a direct stand against intimidation: “We do not bow to intimidation. We do not cower. We stand up, and we organize. We defend what’s ours.”

The RECOURSE Act requires a unanimous vote by the governor, comptroller, and budget director before the state can act, emphasizing that this is no symbolic stunt but a serious financial safeguard. As Assemblymember Lasher explained, it’s about deterring “financial bullying” and ensuring New York has leverage in legal battles with the Trump administration.

Wisconsin and Connecticut Add Tools to the Toolbox

In Wisconsin, Representative Renuka Mayadev introduced AB 345 (2025), a measure to mirror Trump’s own tactics. If Washington withholds money, Wisconsin would withhold payments in return. “We will not sit back and watch Donald Trump pick the pockets of hard-working Wisconsin people,” Rep. Mayadev declared. While unlikely to advance in a GOP-controlled legislature, the bill signals that even in battleground states, leaders are preparing to resist.

Connecticut, too, is exploring bold measures. Senator Matt Lesser introduced an amendment empowering the state to stop sending millions of dollars in payroll taxes and other payments to the federal government if Trump defies court orders. “If they’re going to be breaking the law, maybe Connecticut should fight back,” Senator Lesser said, acknowledging the risks but insisting timidity was not an option: “Timidity has never been a successful counter to authoritarianism.”

Rethink the Deal

Political commentator David Pakman says maybe it’s time these “donor states back out of the deal.” As states grapple with how to respond to the Trump Administration, some are experimenting with ballot initiatives, lawsuits, and financial maneuvers to make themselves less dependent on Washington’s whims. Meanwhile, other states, as mentioned above, are proposing to withhold funds from the federal government.

The state responses may face steep legal hurdles under the Constitution’s supremacy clause, and experts warn that withholding state payments might not fully offset federal freezes. But as UCLA law professor Jon Michaels put it in Indivisible’s guide, states must be “enterprising, creative, and somewhat feisty” in defending their authority. These efforts may not close every budget gap, but they send a clear message: the federal government cannot act with impunity. The deal, as it stands, is broken. And across the country, states are beginning to rethink it.

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