New Jersey governor-elect Mikie Sherrill is exploring an unprecedented approach to fight back against the federal government and Donald Trump. The state may consider withholding federal tax dollars as a means to challenge national policies directly.
She first floated the idea in an appearance on Jon Stewart’s The Daily Show, where she told the comedian that withholding federal tax dollars as an opposition tactic would be a “good thing”.
The idea is rooted in frustration over federal programs that critics of the White House see as underperforming. New Jersey consistently sends more in taxes to Washington than it receives in return, fueling discussions about reclaiming control over state resources.
In fact, according to a study from earlier this year, New Jersey is the least dependent state in the nation.
This is not a new idea. The concept of withholding federal tax dollars has been suggested by past governors, but implementation is legally complex. Most federal revenue comes from individual and business taxpayers, making direct state action a challenge. Still, the governor-elect’s team is reviewing options and preparing strategies for potential legal pathways.
Earlier this year, then-candidate Katie Brennan, who won her election to NJ General Assembly on November 4, floated this same idea after the Trump Administration froze billions in Congressionally approved funds for the Gateway Tunnel Project at the direction of Office of Budget and Management Director Russ Vought.
As the new administration prepares to take office, New Jersey is looking down the barrel of an oppositional tool that has yet to be used. Could New Jersey—the least federally dependent state in the nation—withhold federal taxes as a means to fight back? It remains complex, but governor-elect Sherrill has made clear that nothing is off the table.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.