Good morning, it’s Tuesday, July 15, 2025. In today’s edition, states face Medicaid budget crunch; Dems sue Trump over education funding; DNC makes big bet on Virginia:
Top Stories
HEALTH CARE: President Trump’s reconciliation bill requires states to confirm that working-age adults eligible for Medicaid under the Affordable Care Act are working or are unable to work. That provision could save states money over the long term, if it excludes enough people from Medicaid, but it also requires spending in the short term as states transform enrollment systems to make the necessary checks.
The One Big Beautiful Bill also gradually shrinks the maximum tax rate expansion states can charge providers like hospitals. Those provider taxes allow state to boost money earned for treating Medicaid patients. States that have expanded Medicaid under the ACA will face billions in revenue losses. (Pluribus News)
EDUCATION: Twenty four states and the District of Columbia have sued the Trump administration over $6.8 billion in education funding the administration has withheld. That accounts for 14% of federal funding for elementary and secondary education, money that pays for free and low-cost after-school programs and ESL training. (New York Times)
MORE: Montana has launched its first registered teacher apprenticeship program thanks to $4 million in federal grants, Gov. Greg Gianforte’s (R) office said Monday. The program will allow apprentice teachers to be paid for their time in the classroom. (Missoulian)
IMMIGRATION: Delaware Gov. Matt Meyer (D) has signed legislation prohibiting state law enforcement agencies from entering into agreements with federal immigration authorities to enforce immigration violations or share immigration enforcement data. Meyer also signed a bill creating a criminal offense of impersonating a federal officer after two suspects allegedly impersonated ICE officers during an armed robbery last month. (Delaware Public Media)
FEDERALISM: Virginia General Assembly leaders have advised lawmakers to prepare for a September special session to address budget impacts from the federal government. Economists at UVA expect the state to lose 32,000 jobs this year through federal layoffs. (Virginia Public Media)
DISASTER RELIEF: Arizona Gov. Katie Hobbs (D) is requesting a federal investigation into the Dragon Bravo Fire, along the North Rim of the Grand Canyon. The fire has destroyed up to 80 structures, including the historic Grand Canyon Lodge; federal officials chose to manage the fire as a controlled burn rather than extinguishing it after it started July 4. (Arizona Republic)
In Politics & Business
SOUTH CAROLINA: Lt. Gov. Pamela Evette (R) has formally launched her campaign for governor, aiming to replace term-limited Gov. Henry McMaster (R). Evette joins Attorney General Alan Wilson (R) and Sen. Josh Kimbrell (R) in the Republican primary. (The State)
Kimbrell’s former business partner has sued him for allegedly funneling $2 million in business revenue into personal and campaign expenses. Kimbrell denies the charges. (SC Daily Gazette)
VIRGINIA: The Democratic National Committee plans to pour $1.5 million into Virginia Democrats’ coordinated campaign this year. The donation comes after House Speaker Don Scott (D) dropped $3 million in contributions to legislative candidates, exacerbating a fundraising edge Democrats already held over Republican candidates. (Washington Post)
CONNECTICUT: State Rep. Josh Elliott (D) has formally announced his campaign for governor, pledging to raise taxes on the wealthy to fund state services. Elliott has been critical of Gov. Ned Lamont (D), who is thinking about running for a third term. (New Haven Register)
NEW YORK CITY: Former Gov. Andrew Cuomo (D) has formally launched his campaign for mayor as an independent, weeks after losing the Democratic primary to Assemblyman Zohran Mamdani (D). Cuomo launched his bid with an acknowledgement of his primary loss. (State of Politics)
PEOPLE: North Dakota Second Gentleman Tom Strinden, 63, has died after a 17-month battle with brain cancer. Strinden, the husband of Lt. Gov. Michelle Strinden (R), was an eye surgeon who performed more than 15,000 surgeries during his career. (Fargo Forum) Our condolences to the Strinden family.
By The Numbers
$63 million: South Dakota’s budget surplus at the end of Fiscal Year 2025. The surplus comes from $41 million in higher-than-expected revenue and $22 million in reduced spending. Sales taxes came in below estimates, but that was more than offset by unclaimed property receipts. (South Dakota Public Broadcasting)
Nearly 1.5 million: The area, in square feet, of office space in leases canceled by the General Services Administration in Washington, D.C. (Atlanta Journal-Constitution)
Off The Wall
Arlington, Va., has deployed a fleet of robots using artificial intelligence and laser scanners to check out the city’s sidewalks. The robots will wander the Ballston and Rosslyn neighborhoods looking for defects like cracks, weeds or gaps in a 20-day pilot program testing whether they are effective at sidewalk assessment. (Arlington Now)
Belgium has become the first European country to win the quidditch World Cup. The game officially known as quadball is inspired by the Harry Potter novels; 31 teams competed for the cup. The United States has won four of the six cups that have taken place so far. (AFP)
Quote of the Day
“Our mandate is to really look at the landscape of issues coming before the state, before they turn into legislation that the standing committees have to deal with.”
— Missouri Rep. Colin Wellenkamp (R), co-chair of the bipartisan Missouri Future Caucus, which studies issues like artificial intelligence and other matters that will eventually come before the legislature. (KCUR)