Democratic States Plan Emergency Measures Against GOP Budget Cuts
Democratic governors in California, Connecticut, New York, New Mexico, and Minnesota are considering calling lawmakers back into special sessions to address potential budget shortfalls resulting from proposed Republican budget cuts. The GOP megabill, which could cut $300 billion from the Supplemental Nutrition Assistance Program and 7.6 million people from Medicaid, has raised fears of fiscal impacts across states, prompting some red states to also prepare for the financial fallout.
The preparations signal the depths of concerns about how the Republican package might reverberate in state capitals, even as passage is far from assured, especially given the recent vitriolic attacks on the spending bill from Elon Musk. State officials are scrambling to navigate the likely fiscal challenges in what’s already the toughest budget year since before the pandemic in many states.
“Bottom line is states will not be able to absorb all the costs, and decisions will have to be made,” said Brian Sigritz, director of state fiscal studies at the nonpartisan National Association of State Budget Officers. “All states will be impacted.”
The special session threat could be a way for Democratic governors, some of whom enjoy large legislative majorities, to respond to pressure from constituents angry about cuts to health care and food benefits — even if there’s little they can do to combat Trump’s agenda. The details of what the governors would even ask the lawmakers to do are scant given the high degree of uncertainty around the final bill. New York Gov. Kathy Hochul, referencing potential cuts to education, school meals and Medicaid, warned earlier this year that “nothing prohibits us from coming back in a special session to deal with anything that comes our way from the federal government.”
Meanwhile, some Republicans have also expressed concern at the downstream impacts of the GOP megabill. Alabama Commissioner of Agriculture and Industries Rick Pate, a Republican who recently announced a bid for lieutenant governor, previously told POLITICO that in his state “there would be very little interest in us generating the dollars it would take to fund something huge as SNAP.”
States will need to turn to unpopular choices like cutting benefits or raising taxes to fill as much of the gap left by the federal cuts as possible, in addition to other maneuvers like drawing from their rainy day funds, said Sigritz.
Some legislators are accepting that they will likely return to their statehouses for special sessions. Connecticut Treasurer Erick Russell, a Democrat, said in an interview that a special session will likely be necessary if the federal budget significantly shifts costs to states to ensure that lawmakers are “building in some flexibility to try to make whatever adjustments we may need to safeguard residents of our state.”
Connecticut Gov. Ned Lamont’s office told POLITICO that he and legislative leaders are considering declaring a fiscal emergency in order to raise the spending cap, a move it argues would be necessary to pay for the costs shifted to states under Republicans’ megabill.
New York state Sen. Gustavo Rivera, a Democrat who chairs the chamber’s health committee, said he fully expects to return to Albany in a special session if the reconciliation bill clears Congress — and that he will push to “raise taxes on the wealthy” to cover some of the Medicaid spending the federal government plans to cut.
In California, a spokesperson for Assembly Speaker Robert Rivas said there is “a scenario where lawmakers come back later this year” to deal with new budget realities brought by federal cuts.
“I’ll come back any day,” said California Assemblymember Patrick Ahrens, a Silicon Valley Democrat. “This is our job. And if we have to come back in the fall, I will gladly come. In fact, if it means protecting some of these programs, then I think we should come back in the morning, noon, weekend, holidays.”
And in deep-red West Virginia, Mike Woelfel, minority leader in the state Senate and one of the 11 Democrats in the entire Legislature, said he wants his Republican governor Patrick Morrisey to call a special session if the federal cuts are adopted.
“This is the kind of thing that should trigger special sessions if we get into this hellhole that this legislation would put our most vulnerable citizens in,” Woelfel said. “But there’s political risk in (the governor) doing that.”
Eric He and Katelyn Cordero contributed to this report.