Where there's a will there (might) be a way.
Lisa Needham at Public Notice:
While the most visible sign of the administrationâs war on Minnesota is ICEâs brutal and deadly occupation, itâs not the only way President Trump is attacking the state. As punishment for the crimes of having a diverse population, not voting for him in three elections straight, and having Tim Walz as governor, Trump has also stripped or withheld billions of dollars, attempting to starve the state of resources. Meanwhile, the state, like all others, continues to pay into the federal governmentâs coffers. Like many other blue states, Minnesota pays more to the federal government than it takes in. But why should the state continue to subsidize a government bent on destroying it? What if it just ⊠didnât?
A few other states have already floated this idea. Legislators in Connecticut, Maryland, New York, and Wisconsin introduced bills to withhold federal payments way back in June of last year. Those bills would authorize the state to withhold federal funding if the state determines that the federal government is delinquent in its funding. States would withhold federal taxes collected from state employees and stop repaying federal grants. A similar proposal in New York would allow the state to withhold federal taxes from state employee paychecks as well as an amount equivalent to any federal payments being withheld in violation of a court decision. California Gov. Gavin Newsom has said his state might withhold some funds given Trumpâs threats to slash billions in funds, but Newsom hasnât specified what funds or how this would work. All of these proposals run into the same problem: How, if at all, can a state tell the federal government to pound sand when the taxman comes around?
[...]
There are any number of arguments that can be raised to justify not paying federal taxes, most of which tend to make you sound like a sovereign citizen, mumbling about how the Sixteenth Amendment isnât real or paying taxes is an illegal search and seizure. Red states make a lot of noise about figuring out ways not to pay federal income tax to the tyrannical federal government, though maybe not so much these days. States have some limited power to resist federal demands thanks to the Anti-Commandeering Doctrine. This is grounded in the Tenth Amendment, which reserves all powers to the states, save those explicitly granted to the federal government by the Constitution. Under this doctrine, the federal government canât commandeer states into administering federal mandates. The federal government can impose â and pay for and provide personnel and other resources for â federal regulations, but it canât make states pony up for that.
The patchwork of Medicaid expansion under the Affordable Care Act is based on this doctrine. The Supreme Courtâs decision in NFIB v. Sebelius upheld some of the ACA but struck down the provision requiring states to accept Medicaid expansion, even though the federal government was providing substantial funding for states to do so. However, states could lose all their Medicaid funding if they didnât take the expansion, and the court held that this was too coercive and was essentially commandeering states into following a federal mandate. States could therefore still voluntarily expand Medicaid and take federal funds to do it, but couldnât be required to do so.
That doctrine may also be effective â well, presuming the Supreme Court actually follows its own past jurisprudence â in stopping the federal government from blocking funds to sanctuary jurisdictions. Immigration enforcement is entirely left to the federal government. Indeed, states are prohibited from making their own state-level immigration laws, which Florida found out earlier this year when the Supreme Court refused to entertain its request to overturn lower court decisions saying just that. If saying that the government canât yank all Medicaid funding is too coercive â the conservative majority in Sebelius called it âa gun to the headâ â then threatening to yank some vast unspecified pool of federal money to states that wonât participate in Trumpâs war on immigrants is likely coercive as well.
The problem for Minnesota is that this doctrine is limited to attempts to condition funding on federal action. It provides no protection against the government just taking money away for no reason at all, which is basically what is happening right now. Trump has been slashing money left and right from blue states, something that is all the more maddening given that blue states subsidize red ones by a substantial margin. From 2018 to 2022, blue states paid in roughly 60 percent of federal tax receipts while getting 53 percent back.
[...] While normal paths might be foreclosed, thereâs something else that remains: symbolic refusal and civil disobedience. One possible way is for the state to continue requiring taxpayers to still pay all federal taxes, but for the state to serve as a custodian of those funds, not passing them along to the administration. That would protect individual taxpayers from the wrath of the administration, possibly, as they wouldnât be refusing to pay federal taxes as such. At root, this is what the other blue state proposals contemplate as well: An individual taxpayer isnât put at risk because no individual taxpayer is refusing to pay their federal taxes. The state just isnât passing those funds along. This method also canât be attacked as a form of nullification. It doesnât require the state to pass a law purporting to nullify any federal obligation or tax requirement. It isnât a weird state sovereignty argument. Itâs just a bank account move: the funds are here, and the federal government can have them once they stop illegally attacking the state financially and otherwise.
Blue States should consider all measures to defy the reckless Trump Regime, including making the state serve as a custodian of federal tax funding.

















