Dear John,

We are excited to introduce a new resource designed to assist state legislators in navigating the federal budget: "State Debt Collection Against the Federal Government ([link removed]) ," a detailed legislative brief outlining an unprecedented policy strategy to address the persistent fiscal crisis confronting states.


** The Challenge: A Two-Part Fiscal Assault
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State budgets are currently under severe pressure from two major factors:
* The Big Ugly Bill (HR1): This federal budget reconciliation bill has shifted significant costs for critical social programs, such as Medicaid and SNAP, directly onto state budgets.
* Executive Overreach ([link removed]) : The administration has regularly threatened and withheld congressionally approved funding ([link removed]) from states, impacting key areas like climate resilience, school resources, and public safety programs. As Maryland Delegate David Moon notes, relying only on lawsuits is an insufficient delay tactic.


** Policy Innovation: Debt Collection as Defense
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In response, states are pioneering innovative legislation rooted in standard commercial debt-collection practices, which we have compiled in this new report ([link removed]) . These bills, already introduced in states like Maryland, New York, and Wisconsin, are designed to reclaim funds the federal government is illegally withholding.
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The legislative brief ([link removed]) details two primary mechanisms:
* Withholding State Funds: Authorizing states to intercept or reduce state payments made to the federal government by the amount of the illegally frozen aid.
* Placing Liens on Federal Properties: Allowing states to place statutory liens on non-essential federal properties within state borders, equal to the amount of the federal debt.


** Learn the How and the Why
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The report provides the full mechanics ([link removed]) of these legislative proposals and includes exclusive interview excerpts from the bill authors, revealing the urgency behind their efforts to protect their constituents and state services.
See the Report ([link removed])

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** Related Event: Affordability for All: An Agenda to Bring Down Costs for Working Families | 12/8 - 1:00 PM ET
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Years of increasing unchecked corporate power has created a cost of living crisis that is crushing working people. Voters across the country are sending a clear message: they demand and expect leaders who will take real action to make life more affordable. State and local officials have an opportunity to chart a new course – one that puts working people first by enacting bold, popular, and proven ideas to bring down prices.

Join SiX, Groundwork Collaborative, and Local Progress Impact Lab for a presentation on our new report, Affordability for All: An Agenda to Bring Down Costs for Working Families on Dec 8, 2025 at 1:00 PM ET / 10 AM PT.
Register Here ([link removed])

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