Fact Check: Democrats propose bills to withhold state payments from federal government.

Fact Check: Democrats propose bills to withhold state payments from federal government.

Published June 29, 2025
VERDICT
True

# Fact Check: Democrats Propose Bills to Withhold State Payments from Federal Government ## What We Know Recent reports indicate that Democratic legi...

Fact Check: Democrats Propose Bills to Withhold State Payments from Federal Government

What We Know

Recent reports indicate that Democratic legislators in several states, including Connecticut, Maryland, New York, and Wisconsin, have introduced bills aimed at allowing states to withhold payments from the federal government. This legislative move is primarily a response to actions taken by the Trump administration, which has been accused of unlawfully withholding federal funds from these states. For instance, Maryland's Democratic majority leader, David Moon, stated that these bills are a reaction to the Trump administration's funding freezes that have adversely affected state programs for health care and food assistance (NBC News). The proposed legislation would enable states to withhold federal tax payments and grant payments if the federal government fails to meet its funding obligations (Yahoo News).

Analysis

The claims regarding the introduction of bills by Democrats to withhold state payments from the federal government are substantiated by multiple sources. The bills are designed to counteract what state lawmakers perceive as federal overreach and unlawful withholding of funds by the Trump administration. For example, the bills would allow states to withhold payments owed to the federal government if federal agencies are found to be acting contrary to judicial orders or unlawfully withholding funds that Congress has previously appropriated (Maryland Matters).

However, it is important to note that these bills are still in the early stages and face significant legal and political hurdles. The bills in states like Wisconsin are unlikely to progress due to Republican control of the state legislature, which may limit their effectiveness (NBC News). This situation highlights the contentious political landscape surrounding federal-state relations, particularly under the Trump administration.

The reliability of the sources reporting on this issue is generally high. NBC News and Maryland Matters are reputable news organizations that provide thorough coverage of political events. However, as with any political reporting, there may be inherent biases based on the outlets' editorial slants. For instance, the framing of the bills as a "response" to Trump’s policies suggests a partisan perspective that may not fully capture the complexities of the situation.

Conclusion

The claim that Democrats propose bills to withhold state payments from the federal government is True. The evidence from multiple credible sources confirms that Democratic legislators are indeed pursuing this legislative strategy in response to perceived federal funding abuses. While the bills are still in development and face challenges, their introduction signifies a significant political maneuver in the ongoing struggle between state and federal powers.

Sources

  1. GOP megabill narrowly wins first test in the Senate. Here's ...
  2. To fight Trump's funding freezes, states propose a new ...
  3. To fight Trump's funding freezes, states try a new gambit
  4. Deadbeat feds: State lawmakers draw up bills to respond if ...

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Fact Check: Transcript
00:00
I cannot believe that Trump is
cutting Medicaid. Actually,
what I meant to say is that I
can't believe he's not cutting
more of it because medicaid is
a money laundering scheme for
your government.
Congratulations all you
bleeding heart democrats.
Instead of raging against the
machine, you're bending over
for it. Medicaid is jointly run
by the states and the feds and
for every one dollar that your
state allocates to the program,
the Feds turn around and match
that at a level of one 00
percent so one dollar up to
nine dollars. And this money
comes from taxpayers in other
00:34
states. Your money has a 900%
return rate at someone else's
expense. Why wouldn't you
expand the program? Thanks
Obama. That's exactly how we
wound up with way too many
Medicaid recipients in the
first place. Like everything
related to healthcare the
providers are in bed with the
government on this one too
because the government can tax
the providers. 1. Use that
dollar to collect the up to
nine dollars in federal funds
and to reimburse the provider
their original dollar. What?
Robbing the taxpayer to pad the
funding pool leading to
increase reimbursements for
01:06
Medicaid for the providers.
Yeah, if I'm a doctor or a
health care facility, I'm
saying sign me up to that. Yes,
the medical industrial complex
totally has your best interest
in mind so go ahead and swallow
up those vaccines like a good
little comrade. Age me harder
daddy. And speaking of
comrades, do you know how many
people in this country receive
Medicaid that shouldn't? Before
you start screaming, everyone
should get free health care.
Not the argument here. We do
not have universal health care
in the United States. It
doesn't work and since we don't
have it, that means someone is
paying for it and guess what?
There are lower-income families
01:37
who don't qualify for the
benefits but they're taxpayers
and they're being burdened by
this. Back to the point which
is that the system is insanely
abused. I used to do child
support referee work for years
and you would v
Partially True
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Fact Check: Transcript 00:00 I cannot believe that Trump is cutting Medicaid. Actually, what I meant to say is that I can't believe he's not cutting more of it because medicaid is a money laundering scheme for your government. Congratulations all you bleeding heart democrats. Instead of raging against the machine, you're bending over for it. Medicaid is jointly run by the states and the feds and for every one dollar that your state allocates to the program, the Feds turn around and match that at a level of one 00 percent so one dollar up to nine dollars. And this money comes from taxpayers in other 00:34 states. Your money has a 900% return rate at someone else's expense. Why wouldn't you expand the program? Thanks Obama. That's exactly how we wound up with way too many Medicaid recipients in the first place. Like everything related to healthcare the providers are in bed with the government on this one too because the government can tax the providers. 1. Use that dollar to collect the up to nine dollars in federal funds and to reimburse the provider their original dollar. What? Robbing the taxpayer to pad the funding pool leading to increase reimbursements for 01:06 Medicaid for the providers. Yeah, if I'm a doctor or a health care facility, I'm saying sign me up to that. Yes, the medical industrial complex totally has your best interest in mind so go ahead and swallow up those vaccines like a good little comrade. Age me harder daddy. And speaking of comrades, do you know how many people in this country receive Medicaid that shouldn't? Before you start screaming, everyone should get free health care. Not the argument here. We do not have universal health care in the United States. It doesn't work and since we don't have it, that means someone is paying for it and guess what? There are lower-income families 01:37 who don't qualify for the benefits but they're taxpayers and they're being burdened by this. Back to the point which is that the system is insanely abused. I used to do child support referee work for years and you would v

Detailed fact-check analysis of: Transcript 00:00 I cannot believe that Trump is cutting Medicaid. Actually, what I meant to say is that I can't believe he's not cutting more of it because medicaid is a money laundering scheme for your government. Congratulations all you bleeding heart democrats. Instead of raging against the machine, you're bending over for it. Medicaid is jointly run by the states and the feds and for every one dollar that your state allocates to the program, the Feds turn around and match that at a level of one 00 percent so one dollar up to nine dollars. And this money comes from taxpayers in other 00:34 states. Your money has a 900% return rate at someone else's expense. Why wouldn't you expand the program? Thanks Obama. That's exactly how we wound up with way too many Medicaid recipients in the first place. Like everything related to healthcare the providers are in bed with the government on this one too because the government can tax the providers. 1. Use that dollar to collect the up to nine dollars in federal funds and to reimburse the provider their original dollar. What? Robbing the taxpayer to pad the funding pool leading to increase reimbursements for 01:06 Medicaid for the providers. Yeah, if I'm a doctor or a health care facility, I'm saying sign me up to that. Yes, the medical industrial complex totally has your best interest in mind so go ahead and swallow up those vaccines like a good little comrade. Age me harder daddy. And speaking of comrades, do you know how many people in this country receive Medicaid that shouldn't? Before you start screaming, everyone should get free health care. Not the argument here. We do not have universal health care in the United States. It doesn't work and since we don't have it, that means someone is paying for it and guess what? There are lower-income families 01:37 who don't qualify for the benefits but they're taxpayers and they're being burdened by this. Back to the point which is that the system is insanely abused. I used to do child support referee work for years and you would v

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