Dem lawmakers in blue states have a new plan to fight back against Trump

Democratic lawmakers in Connecticut, Maryland, New York, and Wisconsin are unveiling a novel, aggressive response to President Donald Trump’s moves to freeze or withhold federal funding: state-level bills that would allow them to withhold their own payments to Washington, NBC reported Sunday.

The first-of-their-kind proposals would permit states to suspend payments — including payroll tax withholdings and state grants to the federal government — if Trump’s administration is found to be unlawfully delaying or withholding funds owed by the federal government.

These proposals remain far from becoming law, and legal scholars warn they’ll encounter significant challenges.

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“Trump is illegally withholding funds that have been previously approved,” Maryland House Majority Leader David Moon told NBC. “Without these funds, we are going to see Maryland residents severely harmed — we needed more options on the table for how Maryland could respond and protect its residents," Moon added.

The Maryland lawmaker likened the bills to a “collections” of effort against a “deadbeat debtor,” aiming not only to recover funds but to trigger an audit of federal obligations, per the report.

Connecticut State Senator Matt Lesser is pursuing a similar amendment that would let his state retain payroll taxes — in the event federal aid, such as Medicaid, is frozen in defiance of court orders.

In Wisconsin, Democratic Rep. Renuka Mayadev echoed the sentiment: “We’ve seen the Trump administration is willfully breaking the law by holding back federal funds to which Wisconsinites are legally entitled. So these bills are really about providing for a legal remedy and protecting Wisconsinites,” she told NBC.

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Beyond state legislation, Democrats are also pursuing multistate lawsuits. Recent days have seen challenges from 20-plus state attorneys general and cities accusing Trump’s administration of politically motivated funding freezes, notably around grants for DEI programs and climate initiatives.

With courts already blocking some freezes — including for NIH research and EV infrastructure—Democrats view both legal and legislative approaches as a necessary double-barrel defense.

However, they acknowledge a risk: retaliation by Trump.

“There’s certainly a risk of retaliation by the White House,” admitted Moon, acknowledging that the federal government controls far bigger budgets than any state.