Congress
Ruby-red Florida is still preparing for a financial storm from DC
TALLAHASSEE, Florida — In this hurricane-prone state, Republican legislators say they are preparing to weather a political and financial storm.
In other states led by Democrats, the moves by lawmakers could be labeled “Trump proofing.” But no matter the framing, Florida’s GOP-controlled Legislature is about to wrap up work on the state’s budget with a series of significant steps designed to shore up reserves and curtail spending.
The rationale given by Republican leaders includes everything from making the state’s budget resistant to a possible recession (without mentioning the economic impact of tariffs imposed by President Donald Trump) to acknowledging “uncertainty” associated with Congress and potential cuts to Medicaid, food aid and federal agencies responsible for helping with emergency efforts.
“Should we have the expectation that if the federal government is spending less to get their budget and debt under control that we should be held harmless? I don’t think it works that way,” said Senate President Ben Albritton (R-Wauchula.) “The question is: ‘Do I believe this budget prepares Florida for what could be coming out of the ‘DOGE’ cuts or just the changes that come out of Washington D.C.?’ And I would say yes.”
Lawmakers in Tallahassee got to this point following a protracted and bumpy session, during which legislative leaders clashed over spending levels and tax cuts. State House Speaker Daniel Perez (R-Miami) initially wanted to permanently lower Florida’s sales tax rate, but he encountered headwinds from Senate Republicans as well as Gov. Ron DeSantis. DeSantis contended the sales tax rate cut would benefit tourists and would undercut his push to cut local property taxes.
After being unable to come to a deal during their normal 60-day session, legislative leaders reached an accord late last week. The final deal calls for $2.25 billion in “revenue reductions,” but part of that total includes steering extra money into state reserves while also dedicating money to paying down existing debt. The Legislature also intends to pass a proposed constitutional amendment that would ask voters to permanently increase the size of reserves.
Perez said his push was less about tax cuts and more about paring back spending he asserts had gotten out of control during DeSantis’ time as governor.
But he also argued it would give Florida extra money that could be tapped into if another recession happens. During the Great Recession of the late 2000s, Florida Republican legislators resorted to large budget cuts, but they also drew down reserves and voted to raise taxes and fees to make up the difference
“None of us know what the future holds,” said Perez. “When we had a recession, the state of Florida was not prepared for that recession. We began to scramble. … We did not have the money that was necessary to protect Floridians. After this bill passes we will be in a better place.”
Florida currently has billions in reserves, including a mandated “Budget Stabilization Fund.” They were able to reach that point because the state’s economy grew in the aftermath of the Covid epidemic, while Florida was also flush with billions that came from Congress as part of massive aid packages.
Lawmakers are still tinkering with the current budget, but they are expected to land on a final total this month that puts overall state spending below the amount spent during the current fiscal year that ends on June 30.
The Legislature is also taking steps to claw back billions in unspent money. On Thursday, lawmakers sent DeSantis a bill that would free up $2.1 billion that Florida had set aside three years ago to assist private insurance companies struggling with backup financing due to the state’s property insurance crisis. The money would have eventually reverted back to the state’s main budget account, but legislators decided to speed that up.
As the session has gone on, top Republicans have initially side stepped questions about how much federal grant money state universities lost due to cuts pushed by Elon Musk and the Department of Government Efficiency efforts. Likewise, there has been little debate or discussion about potential impacts to other programs that are heavily reliant on federal aid such as Medicaid.
Florida is also still waiting on money it previously requested from the Federal Emergency Management Agency in response to a flurry of hurricanes that have ripped through the state in recent years.
“There may not be a FEMA next year, none of us know that,” state Senate budget chief Ed Hooper (R-Palm Harbor) said while defending the legislative proposal to set aside extra money for the reserves.
Under the current plan legislators will set aside $1.5 billion over the next two years that will eventually roll into the “Budget Stabilization Fund” if voters ago along with the idea of increasing the size of that reserve.
Some Democrats — who contend the state already doesn’t spend enough on teachers, health care and other programs — raised questions this week about the efforts to put money away in a “lock box,” questioning how easily the Legislature could tap into the fund. The proposal going before voters says the state could withdraw money fund for a “critical state need,” even though that term isn’t defined.
“It’s important to have flexibility because you never know what will come your way,” said state Rep. Christine Hunschofsky (D-Parkland).
But Republican legislators backing the idea said they wanted to make sure the money was only used to deal with a financial crisis or emergency for the state.
“We are doing this so we are truly prepared for a break-the-glass situation,” said Rep. Lawrence McClure (R-Dover), the House budget chief.
The chair of the House Agriculture Committee said he’s not willing to “accept bad results” as a tradeoff for the benefits of advancements in artificial intelligence — a direct rebuttal to OpenAI CEO Sam Altman.
“As someone who practiced health care for 28 years, I’m never willing to accept bad results. I think we just need to do our best,” Rep. G.T. Thompson, a Pennsylvania Republican, told reporters Monday.
He was responding to Altman’s comments to Decoded by Blue Light News that people “should accept some bad things happening for the benefits of this technology and people having the agency.”
Pressed further on whether he agreed with Altman’s premise, Thompson replied, “No, I think we have to work harder to prevent any bad things from happening.”
Altman’s comments come in the wake of increased panic over the risks of catastrophic destruction from AI, with many industry leaders and experts arguing that guardrails are needed on the technology to prevent it from spinning out of human control.
Pressure is building on Congress to regulate the rapidly-advancing technology, but lawmakers are divided over whether the AI industry needs federal regulation or if it’s capable of governing itself.
The executives of major AI labs and tech companies gathered at the White House last week to discuss solutions with President Donald Trump, who believes overregulating AI will have national security repercussions. The group ended up signing a “morally binding” AI accord that critics say won’t do enough to prevent a worst-case scenario.
Thompson noted Monday he believes that AI will bring “tremendous solutions,” specifically in regards to finding cures for health issues like cancer and Alzheimer’s disease. But he also said AI has to be led with “principle” — comparing it to how he addressed digital assets in a bill to regulate the cryptocurrency industry, which he worked on as chair of the Agriculture Committee.
“The first principle is ‘do no harm.’ So we need to protect consumers, and that means, I think, building some guardrails — some guidelines — to do that,” Thompson said. He added that the second principle is to “foster innovation.”
“I think AI has a lot to do with that,” he added. “I don’t think AI works without RI: Real Intelligence.”
LE SUEUR, Minnesota — Senate Majority Leader John Thune said Monday there is no “consensus” yet on advancing a bill establishing permanent daylight saving time even as President Donald Trump ramps up pressure on Republicans to pass it.
Thune addressed the matter in a Monday interview after Trump used his Truth Social account multiple times over the weekend to rail against the legislation, known as the Sunshine Protection Act — going so far as to post the personal cell phone number of one of its GOP opponents, Sen. Tom Cotton of Arkansas.
“The president feels strongly on it like he does a lot of issues,” he said. “It’s something we’re having conversations about but there’s no clear path forward or consensus on it yet.”
While Trump singled out Cotton for scrutiny, Thune made clear the opposition to the permanent daylight saving time proposal — which would lead to very late winter sunrises in some parts of the country — ran deeper than one senator.
Cotton has publicly voiced opposition to the proposal for year, citing, among other things, the fact that children in his state would be going to school in the dark for part of the year.
Sen. Roger Wicker (R-Miss.) voiced similar objections Monday to reporters in the Capitol, saying he was mindful of “safety concerns in the more northern and rural states where children get on the school bus in very early hours.”
Thune, who spoke during a campaign swing in Minnesota with GOP Senate nominee Michele Tafoya, has himself opposed previous daylight saving bills. He said Monday that “a lot of it depends on where you are in the country” and that “your geography probably has as much to do with your position on that as anything.”
Sen. Rick Scott (R-Fla.), who has aligned himself closely with Trump, is among the lawmakers who have been pushing to get the bill through the Senate. He recently told POLITICO, “I’m going to make sure it gets passed this year.”
Riley Rogerson contributed to this report.
Democrats have pulled back some of their ads in North Carolina’s Senate race, days after the top Senate Republican super PAC paused its future spending in the state.
WinSenate, a group affiliated with the Senate Minority Leader Chuck Schumer-aligned Senate Majority PAC, has removed roughly $1.1 million in North Carolina ad buys this week, according to ad tracking firm AdImpact. The group still has roughly $18.8 million in future reservations through Election Day.
“Senate Majority PAC is committed to seeing this race through to victory, and will continue to make spending decisions based on how to best build a strong Senate majority,” Senate Majority PAC spokesperson Lauren French said in a statement.
The move, combined with the GOP-aligned Senate Leadership Fund’s decision to pause future spending, are a signal that both parties are shifting resources amid an ever-expanding Senate map. Democrats are increasingly confident in their North Carolina Senate nominee, Roy Cooper, as he continues to hold a sizable lead in public polling over Republican Michael Whatley — but some privately say states like Michigan and New Hampshire need more resources.
Meanwhile, multiple Republican groups, not just SLF, have retreated from the state in recent weeks, effectively deciding that it’s no longer worth the money to boost Whatley’s campaign.
The Koch-aligned Americans for Prosperity Action left North Carolina off its $22 million list of future spending across key Senate contests, and Old North Action removed $6.5 million in ad reservations last month.
The Cooper campaign, however, is still treating the race as competitive, pointing to North Carolina’s closely divided electorate and the fact that President Donald Trump won the state in each of the past three presidential elections.
“North Carolina is a truly 50/50 state and Democrats haven’t won a US Senate race in 18 years. We can’t take anything for granted or our eye off the ball,” said Morgan Jackson, a senior adviser to the Cooper campaign. “DC is broken and we’re going to continue to run this race like we’re ten points down to ensure North Carolinians get the change they desperately need.”
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