Connect with us

Congress

Trump’s megabill is creating a budget nightmare for states

Published

on

President Donald Trump’s landmark legislation is driving a giant hole in governors’ budgets in a midterm year.

By slashing health care and food assistance for low-income Americans, Republicans in Washington are passing tremendous costs onto the states, leaving local leaders from both parties grasping for ways to make up for billions in lost federal dollars. The cuts are already threatening to endanger governors’ education, public safety and disaster relief funds.

And this is all happening as up to 20 state leaders face reelection in 2026, forcing them to figure out how to message the fallout as their parties battle for control over the House next year.

“We don’t put these budgets together that have a lot of fluff and rainy day funds that are easily accessible,” said Democratic Kansas Gov. Laura Kelly, who chairs the Democratic Governors Association. “All of us are trying to figure out how to mitigate the damage that will be done to our constituents.”

Kelly, whose term ends next year, said governors across the country are now in “a world of hurt and concern.”

In deep blue New York, Democratic Gov. Kathy Hochul is contending with an $11 billion budget hole as she faces reelection next year, possibly against Trump acolyte Rep. Elise Stefanik. Some 2,500 miles away in Arizona, Democratic Gov. Katie Hobbs is warning the state can’t even begin to cover the losses from the federal legislation passed earlier this month. And in Nevada, Republican Gov. Joe Lombardo has to try to persuade his voters of the merits of his party’s tax cuts geared toward the working class as he runs for reelection, even though he too has warned against slashing Medicaid.

It all amounts to a serious financial problem that’s even more acute for governors up for reelection next year. Many will have to decide between politically unpopular tax hikes or further changes to Medicaid that could kick more people off the program. State leaders have begun crunching numbers as they try to account for the looming funding gap.

Kelly’s fellow Democratic governors are shackled with the same budget constrictions as Republicans — and similarly will face fallout. But despite the impending headache, the party sees political upside. Democrats intend to slam Republicans in the midterms over their cuts to Medicaid and food assistance in order to pay for tax cuts that largely benefit the wealthy. That message will be a centerpiece of the minority party’s midterm strategy, and they’re anticipating voters will blame the GOP when they lose Medicaid coverage or experience the closure of a local hospital.

In a twist that stands to advantage Democratic governors, many of the GOP-backed cuts won’t take effect until after next year’s elections — a provision Republicans instituted to armor itself.

“While the legislation is terrible, it is good ammo for governors in battleground states,” said Matt Grodsky, a Democratic consultant in Arizona. “In Arizona we know this will increase costs on families, utility rates will go up, for some families taxes will go up, and even if you’re not on Medicaid chances are your older relatives are.”

Illinois Gov. JB Pritzker, a frequent Trump critic, will focus his campaign messaging on the president. “It’s the federal government and MAGA Republicans that are at fault for your food assistance, your rural hospitals closing or you getting kicked off Medicaid,” said a person close to Pritzker’s reelection campaign, hinting at the Democratic governor’s strategy for maneuvering around state budget concerns.

Last week, Pritzker featured the owner of Billie’s coffee shop in Chicago talking about the local business affect of the president’s trade policies, as a way to localize Trump’s actions and influence swing voters. “Packaging bags, the costs have increased,” the owner Gina says in the video. “Those are things that I feel like President Trump has created. We have cut as much as we can at this point. We need some stability, and that’s not what we’ve seen so far.”

Republicans are confident they can beat back the attacks by claiming they are effectively combating waste, fraud and abuse in welfare programs, while pointing to the bill’s popular provisions like eliminating taxes on tips or overtime.

Yet House Speaker Mike Johnson has privately conceded that the deeper Medicaid cuts pushed by the Senate will force House Republicans to lose their slim majority next year. Publicly, Johnson has struck a more optimistic tone, repeatedly telling reporters that he has “no concerns” about the bill costing Republicans’ seats.

Republicans know the megabill could end up hurting them. That’s particularly relevant in Arizona, where Hobbs might face a challenge from Republican Rep. Andy Biggs, who voted for the legislation. “I can imagine voters will be reminded on an hourly basis that any cuts will be laid at the feet of Congress and President Trump,” GOP strategist Barrett Marson said.

Should Hobbs — facing one of the most competitive gubernatorial races next year — successfully channel backlash to the megabill to help her win reelection, she will have other problems to deal with.

An estimated 360,000 Arizonans stand to lose their Medicaid coverage. And experts have identified five rural hospitals on the brink of closure due to reduced revenue from Medicaid patients. The federal government shifting Supplemental Nutrition Assistance Program administration costs onto states could mean that Arizona will strain to continue feeding the 1 in 8 residents who rely on it to buy groceries.

The federal clawbacks are so significant that governors are warning they are entirely unable to make up the difference. “It’s billions of dollars that we don’t have,” Hobbs said as the Senate passed the bill. “Even if we cut every single thing in the state, we don’t have the money to backfill all these cuts.”

By design, the bulk of the Medicaid and SNAP changes won’t take effect until after the midterms, a legislative maneuver intended to shield Republicans from immediate electoral consequences that could also give governors more time to reconfigure state funding formulas. But state appropriators say they are already mapping out how to account for the steep federal losses, and may need to start moving around funds in next year’s budgets.

“Do we fund food for hungry families, or do we fund our community colleges?’” said Arizona State Rep. Oscar De Los Santos, the Democratic minority leader. “Do we fund food for hungry families, or do we pay public school teachers? That is the position that Trump and the Republicans have put us in.”

Public polling shows the funding bill is widely unpopular. One recent Quinnipiac survey found 55 percent opposed the law compared to 29 percent in support.

The Republican governors who publicly supported the bill now have an especially difficult situation. GOP-led states with large populations of low-income Americans rely the most on federal assistance and lack the tax base or political willpower to support any revenue increases.

Repercussions from the megabill are unlikely to have any electoral bearing on the deep red states with upcoming gubernatorial elections. But it could pose problems for Lombardo.

In February, Lombardo urged Congress not to slash Medicaid funding to avoid “serious consequences” for vulnerable populations and the health care infrastructure – a rare break for a GOP governor against Trump and Congressional Republicans.

But when the bill was ultimately passed, Lombardo praised its no-tax-on-tips provision that influenced by Nevada and its thriving tourism economy, and said that while his administration assesses the bill “Nevadans should be excited about the potential impacts of tax cuts, investments in small businesses and American manufacturing, and efforts to secure the border.”

Democrats who control the Nevada state legislature, however, believe that the legislation will create more harm than good, and when people start to lose their health insurance they will blame Lombardo for not speaking out more against the law.

“It’s just too early to tell how bad it is, but from what we know so far, it is going to be a life and death situation for many folks,” said Fabian Doñate, a Nevada state senator.

In New York, state officials are warning the funding cuts will lead to job losses. A projected 63,000 jobs will be eliminated, nearly half from the health care sector.

Democratic strategists believe that’s a compelling argument for Hochul to make ahead of her campaign for a second full term next year, when she faces potential GOP challenges from Stefanik and Rep. Mike Lawler.

“Don’t just focus on the cost of it, talk about what people aren’t going to be able to do going forward,” said Basil Smikle, the former executive director of the New York State Democratic Party. “Talk about what they’ll lose. Kids aren’t going to a doctor, your child is losing SNAP benefits. That’s the way you talk about it — not so much as a spending issue, but frame it as a right you used to have but no longer have.”

Yet Democratic state lawmakers in Albany worry there are limits to that strategy. New York’s budget next year was already estimated to have a $7.5 billion gap to fill. That hole is expected to grow to $11 billion as a result of the federal cuts.

“Governmentally this is an atomic bomb,” Democratic state Sen. James Skoufis said. “It’s nothing but bad news. It’s a massive gaping hole in New York’s budget and I imagine most state budgets around the country.”

New York has one of the costliest Medicaid programs in the country. About 44 percent of the state’s residents are enrolled in Medicaid or have state-sponsored coverage. Some Democrats fret the cuts will lead to hospital closures and impact other big-spending areas of the budget like school aid.

“You can blame the federal government all you want, but it’s the state that’s going to be making the cuts to the hospitals and the nursing homes and the health centers and the schools,” Assemblymember Amy Paulin said. “It’s everywhere.”

Shia Kapos contributed to this report.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Congress

Ousted AG Bondi could still be on the hook to testify in Epstein case

Published

on

Pam Bondi is out as attorney general, but she might still be in the hot seat with Congress.

House Oversight and Government Reform Chair James Comer issued a subpoena for Bondi’s testimony last month following a bipartisan vote to compel her deposition for the panel’s Jeffrey Epstein investigation. Immediately following her firing Thursday by President Donald Trump, members of the committee said they still wanted to hear from her, and Comer did not rule it out.

“Since Pam Bondi is no longer Attorney General, Chairman Comer will speak with Republican members and the Department of Justice about the status of the deposition subpoena and confer on next steps,” a committee spokesperson said in a statement.

The pressure could keep building on Comer to force Bondi’s testimony or hold her in contempt of Congress if she refuses to comply — and it isn’t coming only from Democrats. The vote to subpoena Bondi was shepherded by GOP Rep. Nancy Mace of South Carolina, who was joined by four other Republican lawmakers and all Oversight Democrats present. After news of the attorney general’s firing, Mace posted a dramatic image of Bondi’s face superimposed on the word “FIRED.”

“Bondi handled the Epstein Files in a terrible manner and seriously undermined President Trump,” Mace said in her social media post. “She has stonewalled every effort to hold the guilty accountable.”

Trump in a Truth Social post Thursday called Bondi a “Great American Patriot and a loyal friend” but did not give a reason for her departure.

The ongoing calls for Bondi’s sworn testimony underscores the extent to which she has become the administration’s fall person for the seemingly endless Epstein saga.

Trump’s own relationship with the financier has prompted a host of questions about whether he knew of Epstein’s illegal conduct. And while the president has maintained the two had a falling out years ago and he hasn’t been charged with any wrongdoing, Democrats allege that his administration is engaging in a cover-up — with Bondi central to that effort.

“She has weaponized the Department of Justice to protect Donald Trump and put survivors in harm’s way by exposing their identities,” said ranking member Robert Garcia (D-Calif.) in a statement Thursday. “She will not escape accountability and remains legally obligated to appear before our Committee under oath.”

Blue Light News reported nearly a month ago that Bondi was in trouble with congressional Republicans over her handling of the federal Epstein inquiry. The Oversight Committee vote to subpoena the attorney general followed a shaky appearance before the House Judiciary Committee. That same week, Trump fired then-Homeland Security Secretary Kristi Noem after her fraught back-to-back performances in front of key House and Senate panels.

“I just think it’s time to get some answers,” said Rep. Tim Burchett of Tennessee, who was among the Republicans who voted with Mace to approve a subpoena for Bondi. “She’s in the batter’s box. I’d say … let her hit.”

The exact timing of Bondi’s departure from government service is unclear. In a statement on social media Thursday afternoon, she said she would be working to hand over her duties to Deputy Attorney General Todd Blanche over the next month. Blanche has been tapped to serve as acting attorney general until a full-time replacement is confirmed.

In the event that Bondi does appear before the committee in her capacity as a private individual, she would likely have to foot her own legal bills. Those who testify on Blue Light News about previous government service generally have to pay for their representation — including, for example, some of the former federal officials who testified in front of the Democratic-led select committee to investigate the Capitol attacks on Jan. 6, 2021.

A DOJ spokesperson did not respond to an immediate request for comment Thursday afternoon.

Democrats on the Oversight Committee aren’t likely to be sympathetic to Bondi’s plight.

Rep. Dave Min (D-Calif.) said in a statement that Bondi had “repeatedly and flagrantly violated the law and abused her position” and “must comply with the subpoena we issued and appear before our committee.”

Among some in the GOP, Bondi bears the blame for the fallout of the Epstein drama that has consumed Washington for over a year now.

In February 2025, Bondi promised to usher in a new era of transparency in the Epstein matter, but unveiled no new information. Five months later, the Justice Department in an unsigned memo announced it would not be releasing any further materials in the federal government’s investigation into the convicted sex offender. That decision drew outrage from Trump’s base, which has for years been clamoring for an Epstein “client list” that could include a vast web of powerful, wealthy men.

It launched a lengthy campaign to force the DOJ to fully release materials in the Epstein case, culminating in passage of a bill led by Reps. Thomas Massie (R-Ky.) and Ro Khanna (D-Calif.) to make materials in the department’s possession publicly available.

As Republicans were locked in an impasse over whether to advance the bill, House Oversight absorbed the desire from members in both parties to keep demanding accountability over the stalled federal Epstein case. An Oversight subcommittee voted during an unrelated hearing to subpoena the DOJ’s Epstein files, which opened the floodgates for even more subpoenas — of everyone from the executors of Epstein’s estate to individuals in Epstein’s or his associate Ghislaine Maxwell’s orbit.

This has continued even after Congress finally passed the Massie-Khanna legislation which, in turn, led to the committee’s direct targeting of Bondi. She has been scrutinized anew in recent months for overseeing a delayed and haphazard release of the Epstein files, with critics saying the DOJ has been in flagrant noncompliance with that very bill.

In an apparent effort to neutralize the bipartisan push to compel her sworn testimony, Bondi voluntarily came to Capitol Hill last month to brief Oversight Committee members on her Department’s work around the Epstein case. She did not indicate during that closed-door meeting whether she would cooperate with the subpoena, according to Democrats in attendance.

Democrats at one point stormed out of the private briefing, saying it appeared to be an effort by Bondi to avoid testifying under oath. In wake of her termination, Khanna said in a statement she still had to answer for the lack of additional prosecutions in the Epstein case.

Only one person has been convicted on federal charges so far as part of Epstein’s sex trafficking scheme: Maxwell, his former girlfriend and associate. Under Bondi’s leadership, Maxwell was moved to a lower security prison camp in Texas after she sat for an interview with Blanche — a decision that drew questions around why she was moved to a facility perceived as less harsh. Maxwell has said she would cooperate in the congressional Epstein probes if she is granted clemency by Trump.

Lawmakers will almost certainly ask Bondi about this dynamic, if given the chance.

“Firing her does not end this,” said Rep. James Walkinshaw (D-Va.), a member of Oversight, in a statement. “Her removal only increases the urgency for the Oversight Committee to fulfill its oversight obligations.”

Continue Reading

Congress

Florida’s budget stalemate takes on Cherfilius-McCormick probe-related twist

Published

on

TALLAHASSEE, Florida — The state’s Republican-controlled Legislature is considering whether to steer taxpayer money to a nonprofit organization — with a politically connected leader — whose name surfaced in the House probe against Rep. Sheila Cherfilus-McCormick.

The South Florida Democrat last week was found guilty of numerous ethics violations by a bipartisan subcommittee of the House Ethics panel, a move that could lead to her potential expulsion. She has denied all wrongdoing.

The main allegations centered on whether Cherfilus-McCormick improperly funneled millions to her congressional campaign. But a January report from the Office of Congressional Conduct showed that the review also looked at federal funding that went to a foundation led by Freddie Figgers, a telecommunications executive from Broward County with ties to Gov. Ron DeSantis.

The office was reviewing in part whether Cherfilus-McCormick requested money for a community project that went to a for-profit entity in a possible violation of House rules; the final list of violations adopted by the subcommittee did not cite this.

A January report from that office highlighted $2.2 million that went in 2022 to the Figgers Foundation to purchase tablets that would be provided to senior citizens and children with disabilities in Cherfilus-McCormick’s district.

During the recently concluded regular legislative session in Tallahassee, Republican lawmakers in the House and Senate requested money for the Figgers Foundation for a tablet program. The Senate budget included $350,000 for the program, while the House budget had a $1 million appropriation. Two years ago, the tablet program got a $500,000 appropriation from the Legislature.

The report from the Office of Congressional Conduct looked at whether the tablets and the software were products of for-profit companies run by Figgers and whether the program was designed to create future customers for his telecommunications network. The January report also questioned campaign donations to Cherfilus-McCormick from Figgers and his family members, as well money her congressional office spent on constituent messaging services with Figgers Enterprises. The report states that a witness told investigators that shortly after Cherfilus-McCormick assumed office in 2022, she asked a staffer to reach out to Figgers about funding for community projects and that she wanted him to submit a request.

Cherfilus-McCormick’s office did not respond to questions about the tablet program. When asked for comments, the Figgers Foundation responded with a statement from Lee Bentley, a Tampa attorney who serves as legal counsel for the organization.

He said that “Mr. Figgers did not profit from Congressional funding, and he certainly did not make political donations to secure federal monies.” Blue Light News previously reported that individuals or political action committees with Figgers Communications donated $19,800 to Cherfilus-McCormick’s campaign during the 2024 cycle, according to OpenSecrets.

Bentley said “the House Ethics Committee report is replete with factual errors; furthermore, language in the report stating that Mr. and Mrs. Figgers were uncooperative is categorically false. Mr. and Mrs. Figgers agreed to be interviewed, answered all questions posed to them, and produced all subpoenaed documents within their possession.”

Bentley also said that the charitable program at issue was woefully underfunded, and Mr. Figgers made a significant personal donation to complete its work. The program ultimately served 5,000 families in need of tablets to meet their healthcare needs.”

The chief of staff and chief counsel for the House Ethics Committee had no comment on Bentley’s statement.

Figgers, whose mother abandoned him when he was a baby and who grew up in the north Florida town of Quincy, has long-running ties to DeSantis and accompanied him on an economic development trip to Japan shortly before the governor mounted his unsuccessful run for president. DeSantis appointed him in 2023 to the state Commission on Ethics, but Figgers was forced to step down from that position after the Florida Senate refused to confirm him.

DeSantis’ office did not respond to a request for comment.

Senate Republicans at the time did not discuss why they declined to confirm Figgers. But a background document on Figgers requested by a state Senate committee, obtained by Blue Light News through a public records request, included information from the Florida Department of Law Enforcement about several arrests — although Figgers was never convicted. There was also information from FDLE that was redacted when the report was made available.

When asked about the arrests, Meredith Ivey, a spokesperson for Figgers, said that “the real story here is that Freddie Figgers is a hero who was protecting his elderly 81-year-old father, who was suffering from Alzheimer’s at the time, from physical abuse at the hands of another family member struggling with substance abuse. The charges in these cases were dismissed and it’s unfortunate that anyone would assume harmful motives when, in fact, Freddie put himself in harm’s way to protect his beloved late father.”

The Senate has twice confirmed Natlie Figgers, who is married to Freddie Figgers, to the Florida A&M University Board of Trustees.

The January report from the Office of Congressional Conduct said that both Freddie and Natlie Figgers “refused to cooperate” with the initial review and because of that the office could not determine whether the tablet program benefited his for-profit companies.

The final statement of violations against Cherfilus-McCormick touches briefly on whether she provided special favors in connection to community funding projects but does not go into detail. Figgers is not named directly in that document, but instead an “individual” matching his description is quoted as testifying to an investigative subcommittee. That person told the committee he did not remember anyone from the congressional office reaching out to him. He also told the committee he was “not too confident” the funding would go through and he never received any “promises” from Cherfilus-McCormick that the foundation request would be accepted.

It’s not clear if the program run by the Figgers Foundation will ultimately receive money this year from legislators since there is currently a budget stalemate between the Florida House and Senate. Lawmakers ended their regular session without passing a new budget but need to pass a new state budget by the end of June.

State Rep. Jennifer Kincart Jonsson, a Lakeland Republican who requested money for the program, said in an email, “I was not aware the Figgers Foundation or Mr. Figgers were a part of any congressional inquiry.”

State Sen. Tom Leek, an Ormond Republican who put in a funding request for the tablet program in his chamber, said in a text message that “as you know, final funding decisions have not been made.” But Leek also said he was “completely unaware” of the questions about federal funding to Figgers Foundation. He added: “Nor am I aware of any instance outside of this one where the legitimacy of the Figgers foundation or any other Figgers entity has been in question.”

The House Ethics panel is expected to consider what penalties to impose on Cherfilus-McCormick when the chamber returns from recess, which could include her possible removal from office. Cherfilus-McCormick was also indicted last year on charges that she allegedly stole federal disaster relief funds and used some of the proceeds on her congressional campaign. She has pleaded not guilty.

Continue Reading

Congress

Senate gives House a second chance to deliver DHS funding

Published

on

The Senate sent its deal to fund most of the Department of Homeland Security back to the House Thursday morning — marking what should be the beginning of the end of a historic partial government shutdown.

The Senate’s action, taken in a mostly empty chamber just after 7 a.m., came less than a day after President Donald Trump effectively endorsed a two-track strategy for DHS: funding most of it through a bipartisan deal with Democrats then using the party-line budget reconciliation process for immigration enforcement activities.

That means undertaking a redo of the bill Senate Majority Leader John Thune moved through the Senate last week only to see it rejected by the House, where conservatives balked at separating out enforcement funding.

Now the bill is headed back across the Capitol. The Senate approved Thune’s motion Thursday to set aside the House’s plan, an eight-week all-DHS stopgap, and instead give it a second chance to pass the Senate bill, which omits funding for ICE and parts of Customs and Border Protection that Democrats oppose.

Speaker Mike Johnson signed off Wednesday on the two-track strategy, effectively capitulating after torching the Senate bill Friday as a “joke.” But he could still struggle to move it quickly given early opposition from some members on the right flank of his conference.

While the House will convene for a brief session Thursday morning, it will only take one member to prevent the DHS funding bill from passing, and leaders are not expected to attempt it. Johnson will likely have two more opportunities next week, otherwise he will need to wait until all of his members are back and the chamber is fully in session April 14.

Even once both chambers clear the Senate bill, they will face a tight timeline for the second part of the Trump-blessed plan, delivering an immigration enforcement bill to his desk by June 1.

House Republicans are expected to convene a conference call at 11 a.m. Thursday to talk through the DHS strategy, including assurances leaders have gotten from the White House and Senate about passing another reconciliation bill.

The Senate is expected to move first to approve a budget resolution that will unlock the GOP-only immigration bill, according to three people granted anonymity to disclose private strategy, and could adopt the fiscal blueprint for the final bill by the end of the month.

Continue Reading

Trending