Good morning, it’s Tuesday, October 21, 2025. In today’s edition, states weigh Big Beautiful Bill tax impacts; court allows Trump to deploy Oregon Guard troops; North Carolina advances redistricting plan:
Top Stories
TAXES: Lawmakers in Colorado, Iowa, Montana, North Dakota and Oregon are debating how to handle personal and corporate tax cuts adopted under President Trump’s reconciliation bill passed in July. Tax codes in those states automatically conform to federal tax law, meaning those states stand to lose hundreds of millions of dollars in the coming years.
Other states that do not automatically conform to federal tax code are considering following Trump’s lead. Wisconsin Republicans have introduced legislation to end taxes on cash tips. Michigan Republicans have introduced a measure creating a temporary deduction for tips, overtime pay, car loan interest and income earned by seniors. (Pluribus News)
NATIONAL GUARD: A three-judge appellate panel of the 9th Circuit Court of Appeals has ruled President Trump has the authority to deploy Oregon National Guard troops to Portland. The 2-1 decision, authored by two Trump appointees, found the law “does not limit the facts and circumstances” a president can consider when deploying Guard troops domestically. (Los Angeles Times)
REDISTRICTING: North Carolina’s Senate has advanced legislation redrawing the state’s congressional district lines. The measure, passed along party lines, would draw U.S. Rep. Don Davis (D) into a more Republican-friendly seat. (Raleigh News & Observer)
See our report from last week on the new district lines Republicans are advancing.
SHUTDOWN: The U.S. Bureau of Labor Statistics cannot release state jobs data because of the ongoing government shutdown, delaying similar releases from state-level labor and workforce agencies. Agencies in Tennessee, Massachusetts and Kansas have all blamed the federal shutdown for lapses in their own data. (State Affairs)
MARIJUANA: The Ohio House Rules and Reference Committee will unveil new legislation regulating intoxicating hemp products today. The bill, a response to Gov. Mike DeWine’s (R) executive order banning those products, would allow the sale of THC beverages to be consumed on premises, while banning the sale of some THC products sold at gas stations that are attractive to kids. (State Affairs)
EDUCATION: Ohio Gov. DeWine has signed legislation expanding the amount of time students can leave class to attend religious instruction. The new law also allows public and private schools to carry drug overdose medication. (Cleveland Plain Dealer)
MORE: California Gov. Gavin Newsom (D) has signed legislation providing training for school principals and reading specialists in phonics-based reading instruction. That type of instruction has led to improved reading scores in Mississippi and Louisiana, which adopted phonics-based lessons years ago. (Associated Press)
In Politics & Business
VIRGINIA: A new co/efficient (R) poll shows former U.S. Rep. Abigail Spanberger (D) leading Lt. Gov. Winsome Earle-Sears (R) 49% to 44% in the race for governor. Attorney General Jason Miyares (R) leads former Del. Jay Jones (D) 46% to 42%, while state Sen. Ghazala Hashmi (D) leads radio host John Reid (R) 47% to 42% in the race for lieutenant governor. (co/efficient)
Virginians last split their ticket in 2005, when Tim Kaine (D) won the governorship and Bob McDonnell (R) became attorney general.
MAINE: Former Maine Center for Disease Control and Prevention director Nirav Shah (D) will run for governor in 2026, he said Monday. Shah served as principal deputy director of the U.S. CDC during the Biden administration. (Portland Press Herald) Shah is the sixth Democrat to enter the race to replace term-limited Gov. Janet Mills (D).
NEVADA: Assemb. Sandra Jauregui (D) will run for lieutenant governor. Jauregui, a former aide to the late Senate Majority Leader Harry Reid (D), is the first major Democrat to launch a challenge to Lt. Gov. Stavros Anthony (R). (Nevada Independent)
CRIME BLOTTER: Kentucky Rep. Beverly Chester-Burton (D) will serve ten days of home incarceration after her 2024 arrest for driving under the influence. Chester-Burton agreed to an Alford plea. (Kentucky Lantern)
PEOPLE: Maryland Del. Charles Otto (R) has died at 61. Otto represented parts of Maryland’s Eastern Shore since winning election in 2010. (Maryland Matters) Our condolences to Otto’s friends and family.
By The Numbers
More than 1,500: The number of Alaskans displaced after the remnants of Typhoon Halong struck villages along the Yukon and Kuskokwim rivers. Scientists think at least 10 villages along the Yukon-Kuskokwim Delta will have to be relocated in the coming years. (Alaska Beacon)
More than $8 million: The amount U.S. Sen. Jim Justice (R-W.Va.) owes the Internal Revenue Services in unpaid taxes, according to two liens the IRS filed. The liens say Justice owes millions in unpaid taxes dating back to 2009. (WV Metro News)
136: The number of newspapers that have closed in the United States in the last year, according to a report from Northwestern University. There are now 4,490 newspapers published in the United States, down from 7,325 as recently as 2005. (Associated Press)
Off The Wall
Yesterday, we told you Vermont Sen. Sam Douglass (R) is resigning his seat over racist and homophobic texts he sent to a group of fellow Young Republican leaders. But Douglass still chairs the Orleans County Republican Committee, the body that would likely name his replacement. State law gives Gov. Phil Scott (R) the authority to name a replacement, but governors typically request names from the local party committee in the jurisdiction where the vacancy exists. (VT Digger)
A wild bear broke into the Sequoia Park Zoo in Eureka, Calif., over the weekend, when zoo officials said the animal interacted with three resident black bears. The zoo said the wild bear was “a very polite visitor.” (UPI)
Quote of the Day
“AI and automation are disrupting entire industries, and for far too many, homeownership has become a distant, if not impossible dream.”
— Small businessman Will Martin (R), launching his campaign to become Wisconsin’s lieutenant governor. It’s the first campaign announcement we’ve seen specifically mentioning the role AI is playing in the economy. (Wisconsin Examiner)