The Dictatorship

States brace for impact as Trump’s big bill nears completion in Congress

Published

12 months ago

July 1, 2025

States brace for impact as Trump’s big bill nears completion in Congress

JEFFERSON CITY, Mo. (AP) — President Donald Trump’s big bill to cut taxes and reduce federal spending on some social safety net programs could have large implications for states, but for many it’s too late to do much about it this year.

Tuesday marks the start of a new budget year in 46 states. Though some legislatures are still working, most already have adjourned and finalized their spending plans without knowing whether federal funding will be cut and, if so, by how much.

“The ebb and flow of rumors and reality have created great uncertainty and some anxiety in state governments,” said David Adkins, executive director of The Council of State Governments.

Several states have taken preemptive steps, setting aside money in reserves or tasking committees to monitor the impact of federal funding reductions. Others are tentatively planning to return in special sessions this year to account for potential funding cuts to joint federal-state programs such as Medicaid and the Supplemental Nutrition Assistance Program, or SNAP. Others will have to wait until their legislatures are back in session next year.

What’s at stake for states?

“If there are significant cuts, states wouldn’t be able to fully absorb those,” said Brian Sigritz, director of state fiscal studies at the National Association of State Budget Officers.

Nationally, the Medicaid health care program for lower-income residents accounts for 30% of total state expenditures, according to the health policy research organization KFF. That makes it the costliest program in many states, ahead of even K-12 education. The bulk of Medicaid money comes from the federal government, meaning any changes in federal policy can create big ripples for states.

Legislation pending in Congress would affect Medicaid in several ways. New work requirements are expected to reduce enrollment by millions of people, while other proposed changes also could reduce federal payments to states.

Until now the federal government also has covered the full cost of SNAP benefits and half the administrative costs. Trump’s bill would shift more of those costs to states, leaving them to either divert money from other purposes or trim back their food assistance programs.

The Medicaid and SNAP changes are just the latest in a series of Trump policies affecting state finances, including the rollback of grants for transportation and high-speed internet projects and attempts to withhold federal funds from sanctuary jurisdictions that limit cooperation with federal immigration authorities.

Some legislatures are stocking up on savings

A surge in federal aid and state tax revenue during the coronavirus pandemic led to booming budgets and historic cash surpluses in many states. As revenues slow and those surpluses get spent, some states now are trying to guard against federal funding reductions.

New Mexico enacted a law this year creating a Medicaid trust fund gradually stocked with up to $2 billion that can be tapped to prop up the program if federal funding cuts would otherwise cause a reduction in coverage or benefits.

Hawaii lawmakers, in crafting the state’s budget, left an extra $200 million in the general fund as a contingency against federal funding uncertainty. They plan to return for a special session.

And Vermont’s budget sets aside up to $110 million in case federal funding is cut. That includes $50 million that can be spent while the Legislature is not in session and up to $60 million that could be appropriated in the future to address federal funding shortfalls.

Though not necessarily tied to federal cuts, Florida lawmakers approved a proposed constitutional amendment that would set aside $750 million a year — or an amount equal to up to 25% of the state’s general revenue, whichever is less — in a reserve fund that lawmakers could use for emergencies. That measure still must go before voters.

Some governors are cutting back on spending

Because of legislative deadlines, some state lawmakers had to craft budgets well before the details of Trump’s bill took shape.

Virginia lawmakers passed a budget in February for their fiscal year that starts Tuesday. Republican Gov. Glenn Youngkin announced several dozen line-item vetoes in May with the goal of creating a roughly $900 million financial cushion.

“There are some short-term risks as President Trump resets both fiscal spending in Washington and trade policies that require us to be prudent and not spend all of the projected surplus before we bank it,” Youngkin said in a statement.

Republican Missouri Gov. Mike Kehoe on Monday vetoed or froze about $500 million of general fund budget items, citing a need “to rein in unsustainable spending” and guard against a projected future shortfall.

Other states also have left money unspent, even though it has not always been touted as a buffer against federal cuts.

States are “enacting really cautious budgets, knowing that they may have to kind of revise them in special sessions or address changes in next year’s sessions,” said Erica MacKellar, a fiscal affairs program principal at the National Conference of State Legislatures.

Some are taking a wait-and-see approach

Before adjourning their sessions, some state legislatures established procedures to monitor federal funding cuts and recommend budgetary changes.

Montana’s budget includes $50,000 for an analysis of the financial implications of federal actions, but that spending kicks in only upon the cancellation of at least $50 million of previously approved federal funding or the anticipated loss of at least $100 million of future revenue.

If federal funding to Maryland decreases by at least $1 billion, a provision approved by lawmakers requires the state budget office to submit a report to the General Assembly with proposed actions and potential spending reductions.

The spending plan passed by Connecticut lawmakers also requires the state budget office to respond quickly to federal reductions by identifying state funds that could be used to preserve programs, particularly those providing health care, food assistance, education and other priorities.

North Dakota lawmakers left room for more work. They adjourned their biennial session six days shy of their 80-day limit, allowing time to reconvene if needed.

The Dictatorship

Monday’s Campaign Round-Up, 6.22.26: Why Trump backed both Republicans in a key S.C. race

Published

1 day ago

June 22, 2026

Blue Light Newsroom

Monday’s Campaign Round-Up, 6.22.26: Why Trump backed both Republicans in a key S.C. race

Today’s installment of campaign-related news items from across the country.

* In South Carolina’s gubernatorial raceDonald Trump endorsed Lt. Gov. Pam Evette last month. Last week, however, ahead of this week’s primary runoff election in the race, the president published an online item telling voters that “you can’t go wrong” with either Evette or state Attorney General Alan Wilson.

If this sounds at all familiar, it’s because Trump has done this before. Around this time two years ago, for example, he endorsed both Republicans running in a congressional primary in Arizona. And two years before that, he endorsed two leading contenders in a Senate primary in Missouri.

Only the president can say for sure why he ended up endorsing Evette and Wilson in the South Carolina race, though it’s worth emphasizing for context that GOP primary voters have already ignored his direction into two gubernatorial primaries this month, and it stands to reason that he hoped to avoid a third.

* We’re one day away from a variety of notable racesincluding but not limited to South Carolina’s gubernatorial race. There are also some congressional primaries in a handful of statesincluding Maryland, New York and Utah.

* In took a while, but the ballots have been tallied under Maine’s ranked-choice systemand we now know that Democrat Hannah Pingree, the former state House speaker, will face off against Republican Bobby Charles, who worked at the State Department during the Bush-Cheney era.

* As for Maine’s closely watched congressional racestate Auditor Matt Dunlap won the Democratic nomination in the battleground 2nd District, defeating state Sen. Joe Baldacci, who enjoyed the backing of the Democratic Congressional Campaign Committee. Dunlap will run in the fall against a familiar figure: former Republican Gov. Paul LePage, who had moved to Florida a few years ago, but who returned to run for Congress.

* In California’s congressional special electiontwo Democratic candidates — state Sen. Aisha Wahab and Melissa Hernandez, a Bay Area Rapid Transit director — have advanced to an Aug. 18 special general election. The winner will fill the vacancy left by disgraced former Rep. Eric Swalwell, who resigned in April.

* In a new commercial shared first with MS NOWDemocrat James Talarico has launched his campaign’s first multimillion-dollar ad buy in Texas’ gubernatorial race. In the 30-second spot, Talarico focuses on affordability and the cost of living. The state lawmaker will face scandal-plagued state Attorney General Ken Paxton in the fall.

* And in New Jersey, Republican Rep. Tom Kean Jr.who has been missing from Capitol Hill since early March, will reportedly return to work on June 30according to a statement from his spokesperson. Neither Kean nor his office have offered any public information about why he has been away.

Steve Benen is a producer for “The Rachel Maddow Show,” the editor of MaddowBlog and an MS NOW political contributor. He’s also the bestselling author of “Ministry of Truth: Democracy, Reality, and the Republicans’ War on the Recent Past.”

The Dictatorship

Trump tries dual endorsement in South Carolina as his pick for governor flounders in polls

Published

1 day ago

June 22, 2026

Blue Light Newsroom

Trump tries dual endorsement in South Carolina as his pick for governor flounders in polls

Jun. 22, 2026, 11:39 AM EDT

After President Donald Trump’s pick for governor in Iowa lost in the Republican primary earlier this month, the president argued that he “would have endorsed the other person” if he had “the proper information.”

Trump is taking no chances in the South Carolina gubernatorial primary. Over the weekend he rescinded his exclusive endorsement of Pamela Evette, the lieutenant governor, announcing instead that he would support both Evette and her runoff opponent, Alan Wilson, the state’s attorney general.

The move put Evette’s political future in jeopardy: Even before Trump’s dual endorsement, she trailed in limited public polling and was seen by political observers in South Carolina as a weak candidate with little to show besides the president’s coveted endorsement.

“Her chief distinction from Alan Wilson was that Trump endorsed her,” said Dr. Dubose Kapeluck, a professor of political science at the Citadel Military College of South Carolina.

Trump’s dual endorsement “was a kiss of death,” he told MS NOW.

Evette, who moved to South Carolina from Ohio to found a successful payroll and HR company in 2000, has been lieutenant governor since 2019, serving under Gov. Henry McMaster, who is term-limited.

In office, she has pursued meaningful but little-celebrated policies, like a key tort reform bill, according to Gil Gatch, a Republican member of the South Carolina state House and an Evette supporter.

But voters could be forgiven for knowing little about Evette besides the fact that Trump endorsed her, which he did just days before the June 9 primary. Visitors to her campaign website are greeted with a full-screen message labeling Evette as “Trump-endorsed.” The first line in her X bio states the same. Pro-Evette television ads are quick to tout the endorsement.

An accomplishment like tort reform, while noted on Evette’s website, “maybe could have been something that was highlighted more heavily,” Gatch told MS NOW.

The political makeup of South Carolina nearly guarantees the next governor will be whoever emerges on Tuesday between Evette and Wilson. They survived a crowded primary field on June 9, and nearly every challenger who fell short of the runoff publicly endorsed the attorney general.

“She’s just not a good candidate,” Josh Kimbrell, a state senator who failed to make the runoff and has since said he’d back Wilson, said of Evette.

“She kind of assumed this was a coronation, and that was never going to go over that well,” he added.

Even some pro-Trump voters were confused by the president’s initial endorsement of Evette, whom he called “a good friend, fighter, and WINNER” in a social media post in May.

“I have no clue why Trump would endorse Pamela Evette,” Leland Lemmons, a 30-year-old Trump supporter told MS NOW as he exited a polling site in the Greenville suburb of Easley on June 9.

“She’s served, you know, a decent time. I just haven’t seen much fruition of what she’s done in office,” he added.

In a post on Truth Social Friday announcing his dual endorsement, Trump wrote, “I can’t hurt one of them by only Endorsing the other, so, therefore, I am going to Endorse, for Governor of South Carolina, both Pam Evette and Alan Wilson!”

In a subsequent statement on X, Evette said, “I was proud to come in first as [Trump’s] endorsed candidate for Governor on June 9th. Looking forward to doing it again on June 23rd.”

After The Washington Post foreshadowed the dual endorsement last Tuesday, allies of Evette were quick to denounce the possibility.

“I would guess that’s fake news,” Suzanne Pucci, a member of Evette’s finance committee, told MS NOW of the chance Trump would also endorse Wilson. “She’s probably not real worried about it.”

Another close ally and supporter told MS NOW at the time the report was “a total, fabricated lie.”

“[Trump] is invested in Pamela Evette because she invested in him. He’s a loyal guy. That kind of stuff is important to him,” added the supporter, who spoke on condition of anonymity.

“With or without Trump, I think she is going to win,” they said.

On Thursday, a senior campaign aide, who spoke on condition of anonymity, brushed off the idea of a dual endorsement, telling MS NOW in a statement, “Pamela Evette has earned the complete and total endorsement of President Trump. She is the only Trump-endorsed candidate in this race and we look forward to delivering a big win for the president on Tuesday.”

Roughly 24 hours later, Trump retracted the exclusive endorsement.

Will McDuffie is a reporter for MS NOW.

The Dictatorship

Fears of an ‘economic catastrophe’ helped push Trump toward an Iran deal

Published

1 day ago

June 22, 2026

Blue Light Newsroom

Fears of an ‘economic catastrophe’ helped push Trump toward an Iran deal

As last week’s G7 summit in France got underway, a reporter asked Donald Trump whether his purported deal with Iran was final. “No, it’s not final,” the president replied. Later that day — during a visit to Versaillesof all places — he signed the framework anyway.

But moments after signing his name to the memorandum of understanding, Trump offered an unsubtle hint about what he was thinking at the time. Amid applause from those around him, the American president pointed down and then up while saying“Oil down, stocks up.”

In other words, Trump’s focus had nothing to do with natural security and everything to do with the economy. What’s more, the four-word phrase was part of a larger and underappreciated pattern. The Washington Post reported:

In the more than 100 days since President Donald Trump launched a war with Iran, he has offered a shifting list of reasons for why he started the conflict. But in explaining his push for peace, he named a priority much closer to home: protecting the stock market.

“I didn’t want to see economic catastrophe,” Trump told reporters gathered in the Alpine spa town of Évian-les-Bains, France, after the Group of Seven summit.

As the summit wrapped up, the Republican similarly said“I’ve studied presidents, some good, some bad, some great. Not too many are great and some really bad. … And the one president I did not want to be was the late, great Herbert Hoover. I didn’t want that and who knows what would have happened.”

He pushed the same point in an interview with Axios, which was released over the weekend.

“If I went further, the stock market would be much lower,” the president said. “Now think of this: I have one primary wish as president, in terms of people: I never want to be the late, great Herbert Hoover.”

The comments came days after Trump similarly argued“The alternative to this deal was a global recession. There are stupid people who want to see a global recession. They are just stupid people.”

Whether the president fully appreciates the implications of his own rhetoric, this string of comments doesn’t just shed light on his motivations for accepting a defeat, it also suggests he saw his failed policy in Iran as pushing the global economy toward a dangerous cliff.

In other words, based on Trump’s own comments, the war he started was poised to create an “economic catastrophe,” which he was desperate to avoid — and which led him to accept a framework that empowered Iran to get what it wanted in exchange for effectively no concessions at all.