It’s February 27, 2026, and time for your Democracy in the States: Weekly Roundup.
The friction between federal mandates and state sovereignty is reaching a fever pitch. As the Trump administration ramps up its mass deportation campaign and continues to squeeze federal funding, state leaders are increasingly finding themselves in the crosshairs of federal litigation and executive orders. Two major developments in Minnesota highlight this tension: the administration has officially halted $259 million in Medicaid funding as a “corrective action” for alleged fraud, while a federal chief judge is threatening to hold ICE officials in criminal contempt for repeatedly flouting court orders regarding detained immigrants. In the pages ahead, we’ll look at the burgeoning political fallout of the data center boom and new “guardrails” being built around AI in healthcare. We will also examine a nationwide legal standoff over the privacy of voter registration data and the increasingly organized resistance to ICE’s expansion.
The Infrastructure of Oversight
The rapid growth of data centers has become a governance challenge. States nationwide are struggling with their substantial energy and water demands, as lawmakers question whether the economic benefits justify the strain on local infrastructure and utility rates.
Data Centers and the Grid
IDAHO: Farmers are seeing electric bills spike by 45% as massive tech projects, including a new Meta facility, consume up to two-thirds of the state’s current generation capacity.
LOUISIANA: Gov. Jeff Landry unveiled a $12 billion Amazon project, promising it won’t raise rates, even as New Orleans maintains a moratorium on new centers due to zoning and resource concerns.
MAINE: State legislators are considering a moratorium on data centers above 20 megawatts until 2028 to evaluate the impact on an aging regional grid and high electricity prices.
MICHIGAN: A bipartisan group of lawmakers introduced a temporary moratorium on building data centers , though Gov. Gretchen Whitmer has threatened to veto any legislation that prevents economic growth.
SOUTH DAKOTA: Two data center incentive bills failed during a chaotic session after a Republican opponent went missing from the chamber, preventing a tie-breaking vote by the lieutenant governor.
The Battle Over Tax Breaks
GEORGIA: Legislation ensuring data centers pay for their own infrastructure stalled in the Senate after a last-minute push to adopt industry-preferred language led to an abrupt adjournment.
VIRGINIA: The Senate advanced a budget that would repeal a $1.6 billion annual sales tax exemption for data centers , despite warnings from electrical unions that the move could curb development.
ARIZONA, GEORGIA, and MARYLAND: Lawmakers are moving to repeal or limit industry incentives as public sentiment sours over rising residential energy costs.
AI and Platform Governance
As artificial intelligence expands from labs to therapy, states are establishing guardrails. The focus has shifted from broad innovation to addressing specific harms, especially in mental health and identity protection.
Safety and Identity
FLORIDA: The Senate unanimously passed a bill requiring AI companies to disclose development plans , while a companion House bill seeks to ban centers near schools and residential areas.
KENTUCKY: The House advanced a bill prohibiting AI from making independent therapeutic decisions or generating treatment plans without a licensed professional’s review.
PENNSYLVANIA: Lawmakers are weighing legislation to bar AI chatbots from providing counseling unless under the direction of a human therapist to prevent “masquerading” counselors.
UTAH: The state is advancing bills to regulate “companion chatbots” and require consent for AI-generated intimate images , even as the White House attempts to block broader safety plan requirements.
The Data of Democracy
The federal government’s demand for unredacted voter rolls continues to stir states’ rights debates. Secretaries of State from both parties oppose what they view as unconstitutional federal overreach, threatening voter privacy.
Registration and Voter Data
ARIZONA: Secretary of State Adrian Fontes is resisting a DOJ lawsuit for voter data , citing the Privacy Act of 1974 and expressing skepticism over federal guarantees.
COLORADO: Secretary of State Jena Griswold stated the Trump administration has “lost credibility” after a nationwide FBI call that she claims failed to acknowledge states’ constitutional role in running elections.
KENTUCKY: Secretary of State Michael Adams vowed not to “voluntarily commit a data breach” of sensitive voter information as the DOJ sues the state for full registration lists.
MISSOURI: A bill to publish the full list of 4.5 million registered voters online faced bipartisan backlash over privacy concerns, which the sponsor claimed was a drafting error.
OKLAHOMA: The DOJ sued the state election board for unredacted records, despite state law explicitly prohibiting the release of Social Security and driver’s license numbers.
UTAH: Lt. Gov. Deidre Henderson is fighting a federal lawsuit for voter rolls , arguing that more than 99.9% of the state’s registered voters are already confirmed citizens.
WEST VIRGINIA: The Secretary of State’s office has twice refused federal requests for sensitive voter ID data, citing its responsibility to safeguard information from unauthorized disclosure.
Election Administration and Rules
IDAHO: A bill advanced to the Senate that would require poll workers to verify the birth dates and ID numbers of voters using affidavits before issuing a ballot.
KANSAS: The House passed a series of bills to end mail-only elections , shrink advanced voting windows , and require driver’s licenses to indicate citizenship status.
NEW HAMPSHIRE: Secretary of State David Scanlan testified in a federal trial over the state’s strict new proof-of-citizenship law, which plaintiffs argue will unfairly disenfranchise eligible voters.
NORTH CAROLINA: Ethics concerns are mounting after top election administrators were seen attending partisan fundraisers and appearing in campaign videos for state and federal candidates.
PENNSYLVANIA: Advocacy groups are urging counties to adopt “notice and cure” policies to prevent minor clerical errors from disqualifying mail-in ballots ahead of the midterm elections.
Courts and the Rule of Law
The judiciary is increasingly the primary arena for testing limits on executive power, from the legality of mass tariffs to court structure.
Judicial Power and Redistricting
KANSAS: An appeals court panel expressed skepticism over whether the state’s 125-year-old ban on “fusion voting” is a matter for the courts or the legislature.
MARYLAND: A controversial redistricting bill to eliminate the state’s last Republican-leaning district is “mostly dead” in the Senate Rules Committee after missing key filing deadlines.
UTAH: A federal panel affirmed the power of a state judge to set new congressional boundaries after determining the legislature’s original map was unconstitutionally gerrymandered.
Legal Challenges To Tariffs
MONTANA: Tribal members suing over Canadian tariffs argue a recent Supreme Court ruling helps their case by clarifying that the executive branch cannot impose tariffs on tribal commerce.
OHIO: Small businesses are demanding an automatic refund process after the Supreme Court ruled that double-digit import taxes imposed by the administration were unlawful.
PENNSYLVANIA: Despite the court’s ruling against tariffs, businesses face ongoing uncertainty as the administration vows to find new legal avenues to maintain tariffs.
The Immigration Crackdown
Tensions are rising as the federal government bypasses local authorities to acquire property for new detention centers. Resistance to ICE’s expansion, including arson attempts and lawsuits, is becoming more organized and confrontational.
Detention and Enforcement
ARIZONA: An arsonist targeted a new ICE warehouse in Surprise, days after 1,000 residents protested the conversion of the site into a 1,500-bed detention facility.
GEORGIA: Small towns like Social Circle are pushing back against plans for “mega” detention centers that would house up to 10,000 people, citing insufficient local water and sewage infrastructure.
MARYLAND: Attorney General Anthony Brown sued to block a 1,500-person detention center, alleging federal officials violated environmental laws by purchasing the warehouse without public notice.
NEW JERSEY: The federal government is suing the state over an executive order that bars immigration agents from entering certain state buildings or using state property without a judicial warrant.
PENNSYLVANIA: Gov. Josh Shapiro vowed to use his legal and regulatory power to block two new detention centers , stating the facilities were sited in secret without local input.
WASHINGTON: Lawmakers are moving to fine private detention operators up to $15,000 per day if they continue to deny state health inspectors access to their facilities.
State-Level Restrictions
INDIANA: The Senate passed legislation creating a new National Guard “military police force” that the governor can deploy statewide with standard police powers of arrest.
INDIANA: A separate bill mandating local cooperation with federal immigration detainers and punishing businesses that employ unauthorized workers is headed to the governor’s desk.
IOWA: The Senate passed bills requiring the state to verify the citizenship status of all registered voters, state employees, and commercial driver’s license applicants.
Rights and Power
Beyond immigration, states are asserting control over individual liberties and local governance, often using preemption laws that reduce the authority of cities and counties.
Privacy and Identity
ARIZONA: Republicans approved a ballot referral that would ban transgender students from using bathrooms consistent with their gender identity and prohibit teachers from using preferred pronouns.
COLORADO: A bipartisan bill passed a Senate committee that would require law enforcement to obtain a warrant to search license plate reader databases for crimes older than three days.
FLORIDA: The state approved $40 million in grants for local police to purchase AI surveillance tools, including iris biometric systems and mobile surveillance towers.
KANSAS: Two transgender men sued to block a new law that restricts bathroom usage and invalidates driver’s licenses that don’t match sex assigned at birth.
Governance and Civil Liberties
IDAHO: A bill that would allow the attorney general to freeze local government funding based on a suspected violation of state law was stalled following local opposition.
INDIANA: A statewide ban on “public camping” passed the legislature, establishing criminal penalties for homelessness despite concerns over a lack of available shelter beds.
IOWA: A federal judge ruled that the city of Newton engaged in “quintessential viewpoint discrimination” by arresting a citizen for criticizing the police department during a public meeting.
MISSOURI: A judge ordered the removal of “ballot candy” language from a constitutional amendment that would make it significantly harder for citizen-led initiatives to pass.