Fact Check: States may withhold federal taxes if funding is unlawfully withheld.

Fact Check: States may withhold federal taxes if funding is unlawfully withheld.

Published June 30, 2025
±
VERDICT
Partially True

# Fact Check: "States may withhold federal taxes if funding is unlawfully withheld." ## What We Know The claim that "States may withhold federal taxe...

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.

Sources

  1. AG Campbell Files New Motions To Stop Trump ...
  2. To fight Trump's funding freezes, states propose a new ...

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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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Detailed fact-check analysis of: Transcript 00:00 I'm Christy Nome here in Texas with my boots on the ground after this devastating tragedy that was absolutely not preventable and we are in no way responsible for it after visiting here I recently found out that Habius Corpus is the name of a city here in Texas and is in fact not a legal term which means the president can do whatever he wants. I have been told by some people that in addition to being the Secretary of Homeland Security that does also make me the head of Fema Fema sounds like female or feminism and that's DEI and 00:34 I don't believe in that. President Trump has entrusted me to be in charge of Fema which is not a federal emergency management agency. In fact, all emergencies are actually being managed by the state and the reason why I am here is to make sure to get some good film for my B roll. It is completely disgusting that there are people out there who are trying to politicize the devastation that happened here in Texas and I would like to remind everyone that it is only okay to politicize natural disasters when they happen in 01:04 blue states.

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Fact Check: States may withhold federal taxes if funding is unlawfully withheld. | TruthOrFake Blog