Fact Check: "States may withhold federal taxes if funding is unlawfully withheld."
What We Know
The claim that "States may withhold federal taxes if funding is unlawfully withheld" stems from ongoing legal and legislative actions taken by several states in response to federal funding freezes. For instance, Massachusetts Attorney General Andrea Joy Campbell, along with a coalition of 22 other attorneys general, filed motions against the Trump Administration for allegedly unlawfully withholding nearly $3 trillion in federal funding that supports essential services and programs (Mass.gov). This coalition argues that the President does not have the authority to override laws governing federal spending, which is constitutionally mandated to be executed by Congress (Mass.gov).
In response to these funding issues, some states have proposed legislation that would allow them to withhold federal payments if they determine that the federal government is delinquent in funding owed to them. This approach has been introduced in states like Connecticut, Maryland, New York, and Wisconsin (NBC News). Legal experts have noted that while these bills are innovative, they face significant legal hurdles and are largely untested (NBC News).
Analysis
The assertion that states may withhold federal taxes is partially true but requires careful contextualization. The legal basis for states to withhold federal payments hinges on the interpretation of federal funding laws and the actions taken by the federal government. The lawsuits filed by state attorneys general highlight the contention that the federal government may be unlawfully withholding funds, which could justify state actions in response (Mass.gov).
However, the proposed legislative measures in states to withhold federal taxes as a form of retaliation against federal funding freezes are still in their infancy and have not yet been enacted into law. Legal experts caution that such measures would likely face significant constitutional challenges, as the power to tax and spend is primarily a federal prerogative (NBC News). The complexity of federal-state relations and the legal precedents surrounding federal funding further complicate the viability of such actions.
The sources used in this analysis are credible, with the Massachusetts Attorney General's office being a primary source of legal action and NBC News providing a journalistic overview of the legislative proposals. Both sources present a balanced view of the ongoing legal and political dynamics.
Conclusion
The claim that "States may withhold federal taxes if funding is unlawfully withheld" is Partially True. While there are legal frameworks and legislative proposals that suggest states could take action in response to federal funding issues, these measures are not yet established law and face significant legal challenges. The ongoing lawsuits and proposed legislation indicate a growing tension between state and federal authorities regarding funding, but the practical implementation of such withholding actions remains uncertain.