They’ll slash funding or lash out with tax reform---that devastates state resistance.

The threat of losing federal funding can make states reform-shy

Despite the autonomy states enjoy due to decentralized government, they’re not always immune to retaliation if they choose to go against the federal government. States’ refusal to comply with and direct challenges at federal law can have serious and lasting consequences for states. Sanctuary cities, for example, have been threatened with losing crucial federal funding if they don’t comply with immigration guidelines.

Another unique aspect of American federalism is  budgeting and funding. While the federal government can operate in a deficit, 49 state governments can’t ( is the only clear exception). Additionally, unfunded mandates from the national level put financial pressure on states, and new tax reforms could have major consequences for high-tax states like California, Connecticut, New Jersey, and New York.

Already, as Harold Meyerson at the American Prospect , states are the “primary funders of education, transportation, local infrastructure, and public safety.” As a result, states quickly feel economic strain, meaning that any tough decisions could target new reforms  first.