Democratic governors are bracing for significant budget challenges, exacerbated by the rapid advancement of a GOP megabill in Washington, and they are contemplating emergency measures to mitigate the financial fallout.
Policymakers in blue states—from Connecticut to California to New York—are warning of the potential need to convene special legislative sessions to address what could entail hundreds of millions of dollars in unexpected costs due to President Donald Trump’s “big, beautiful bill.” Even some traditionally conservative states, such as Florida, are proactively considering strategies to counteract the anticipated financial repercussions.
These preparations underscore the serious apprehensions regarding the Republican package and its ripple effects in state capitals, despite the bill’s passage remaining uncertain—especially in light of recent scathing criticisms from high-profile figures like Elon Musk. Officials at the state level are scrambling to manage the likely fiscal hurdles in what is already shaping up to be the most challenging budget year many states have faced since before the pandemic.
“The bill is destructive and risks destabilizing the entire network of supporting programs,” articulated New Mexico Treasurer Laura Montoya, a Democrat, whose governor has virtually confirmed that a special session will be necessary.
The legislation, which passed the House last month and awaits action in the Senate, proposes cutting approximately $300 billion from the Supplemental Nutrition Assistance Program (SNAP) by mandating that states contribute to the program for the first time. It also threatens to disenroll 7.6 million individuals from Medicaid, projecting savings of $800 billion over the next decade, according to the Congressional Budget Office.
The possibility of a special session serves as a means for Democratic governors, many of whom hold substantial legislative majorities, to respond to constituents’ frustrations over cuts to health care and food assistance—despite the limited options available to counter Trump’s legislative agenda.
Details regarding the specific requests governors might present to lawmakers remain vague, given the uncertainty surrounding the final bill. New York Gov. Kathy Hochul earlier this year cautioned that “nothing prohibits us from coming back in a special session to deal with anything that comes our way from the federal government,” referencing potential cuts to education, school meals, and Medicaid. Similarly, Minnesota Gov. Tim Walz stated last month that “we will definitely be back in a special session to deal with” the reconciliation package if the House version is adopted.
While the reasons for a special session may not be immediately pressing—given that measures like sharing the costs of SNAP with states won’t take effect until 2028—the majority of states operate on a fiscal year beginning July 1. This means their budgets are constructed based on existing conditions, even as officials acknowledge the need for potential revisions to cushion the impact of the federal legislation.
“The bottom line is states will not be able to absorb all the costs, and decisions will have to be made,” warned Brian Sigritz, director of state fiscal studies at the nonpartisan National Association of State Budget Officers. “All states will be impacted.”
Interestingly, some Republicans are also voicing concerns regarding the downstream effects of the GOP megabill. Alabama Commissioner of Agriculture and Industries Rick Pate, a Republican who recently announced a campaign for lieutenant governor, previously remarked to POLITICO that there would be little enthusiasm for generating funds in Alabama to support something as large as SNAP.
On the flip side, some are using the discussion of special sessions as a political weapon to criticize Democrats in blue states for being in a precarious fiscal state to begin with. “Our priorities have been on the goofy side,” noted California Assemblymember Tom Lackey, a Republican on the budget committee. He specifically pointed to extensive spending on homelessness that has failed to make a dent in the issue. “We’re trying to offer too much to too many people when we can’t even provide basic services.”
Regardless of party lines, the reality is that states will feel the impact, even if only Democratic leaders are publicly motivated to oppose the reconciliation bill. This reality could force states into unpopular decisions—whether cutting benefits, increasing taxes, or utilizing their rainy day funds—to cover the fiscal gap created by federal cuts, Sigritz added.
Some legislators are already bracing for the likelihood of special sessions. Connecticut Treasurer Erick Russell mentioned in an interview that a special session would likely be necessary if the federal budget shifts costs significantly to states, ensuring that lawmakers can “build in some flexibility to try to make whatever adjustments we may need to safeguard residents of our state.”
Connecticut Gov. Ned Lamont’s office informed POLITICO that he and legislative leaders are contemplating declaring a fiscal emergency to raise the spending cap, arguing this move is essential to manage the costs imposed on states by the Republicans’ megabill.
New York state Sen. Gustavo Rivera, a Democrat and chair of the health committee, anticipates returning to Albany in a special session if the reconciliation bill passes. He intends to advocate for “raising taxes on the wealthy” to offset some of the Medicaid spending cuts anticipated from the federal government.
In California, a spokesperson for Assembly Speaker Robert Rivas indicated that “there is a scenario where lawmakers come back later this year” to address the new budget realities stemming from federal cuts.
“I’ll come back any day,” declared California Assemblymember Patrick Ahrens, a Democrat from Silicon Valley. “This is our job. If we have to return in the fall, I will gladly do so. In fact, if it means protecting some of these programs, then I think we should come back in the morning, noon, weekends, or holidays.”
Even in deep-red West Virginia, Mike Woelfel, the Senate minority leader and one of just 11 Democrats in the state legislature, has called for his Republican governor, Patrick Morrisey, to convene a special session if the federal cuts are enacted. “This is the kind of thing that should trigger special sessions if we get into this hellhole that this legislation would create for our most vulnerable citizens,” Woelfel argued, although he acknowledged the political risks involved for the governor in doing so.
Eric He and Katelyn Cordero contributed to this report.
