From Tariff Rulings to Jurisdiction Disputes: States Navigate a Week of High-Stakes Upheaval
It’s Friday, February 20, 2026, and time for your Democracy in the States: Weekly Roundup. I’m writing to you as the sun sets on a week defined by significant legal shifts, a murky financial picture, and a high-stakes return to legislative business.
On Tuesday, the Minnesota Legislature returned to a Capitol now guarded by metal detectors, a somber start following the politically motivated assassinations of House Speaker Melissa Hortman and her husband last summer. While lawmakers honored their memory, they also faced the chaotic fallout of Operation Metro Surge, which drew thousands of federal agents to the state, sparking widespread legal challenges and community resistance. Meanwhile, states across the country are continuing to discuss legislation and organize communities in anticipation of new ICE surges, which are just one of the conflicts between state and federal policies.
Today’s Supreme Court ruling on federal tariffs and trade deals is likely a hot topic in state capitals, where budget committees are in the middle of a tough fiscal year. In Virginia, reports show that higher living costs are hitting residents hard as they bear most of the tariff costs. In Wisconsin, officials warn that unpredictable trade wars are pushing up prices for essentials like school supplies and groceries, making planning even harder.
Taxes, Budgets & Federal Funding
Budget battles are heating up as federal funding remains inconsistent and states weigh the fiscal costs of complying with federal tax law. From property tax phase-outs to millionaires’ taxes, capitals are debating how much more citizens can or should pay for core services.
IDAHO: Budget committee chairs defended permanent 5% across-the-board cuts despite warnings they could cripple state agencies, fire prevention, and mental health courts.
WASHINGTON: The Senate approved a 9.9% tax on personal income over $1 million to fund public defense and small business tax relief.
FLORIDA: The House passed a joint resolution for a constitutional amendment that would completely end non-school property taxes for homesteaded properties.
COLORADO: Democrats proposed decoupling the state tax code from federal business breaks to fund a new child tax credit for working families.
WEST VIRGINIA: House leaders unveiled a budget without the Governor’s proposed personal income tax cut, opting instead to prioritize Medicaid and education funding.
MAINE: The Governor proposed a supplemental budget to fill a $275 million gap driven largely by federal Medicaid and SNAP funding shifts.
SOUTH DAKOTA: A proposal to let counties levy a sales tax for property tax relief advanced while a permanent state sales tax reduction failed.
DELAWARE: Reports highlight state spending has skyrocketed by 53% since 2020 while population only grew 7.6%, driven by rising healthcare and education costs.
Immigration
A wave of state-level resistance is forming against aggressive federal immigration enforcement, with several capitals moving to shield residents and “sensitive locations” from federal agents. At the same time, some states are moving to penalize those who obstruct federal operations.
ARIZONA: Republicans advanced a bill to criminalize “unlawful alerting” of federal agents, a move activists say targets free speech and neighborhood defense.
MARYLAND: Governor Wes Moore signed emergency legislation banning local police from participating in federal 287(g) immigration enforcement agreements.
NEW JERSEY: A trio of bills advanced to codify the Immigrant Trust Directive and restrict law enforcement from wearing masks during routine duties.
MINNESOTA: The FBI formally notified state officials it will not grant access to evidence from the investigation into the federal killing of Alex Pretti.
OREGON: Democrats are pushing an “immigrant justice package” of 13 bills, including data privacy protections and guidelines for federal agents in hospitals.
OKLAHOMA: Governor Kevin Stitt celebrated the suspension of 122 students who participated in a walkout against federal immigration enforcement tactics.
MICHIGAN: Elected officials and community advocates held a press conference calling for a halt to planned ICE expansions, including a new Romulus detention center.
NEW HAMPSHIRE: Blueprints for a “Detention Reengineering Initiative” show plans to convert a Merrimack warehouse into a regional processing site for hundreds of detainees.
TENNESSEE: House panels expedited bills to punish local governments that refuse to participate in 287(g) programs and require student documentation headcounts.
Schools, Childcare & Funding
Ideological battles over the future of public education are intensifying as legislatures debate voucher expansion and “culture war” curriculum changes.
KENTUCKY: The state Supreme Court unanimously struck down a 2022 charter school law as unconstitutional for failing to provide an “efficient system of common schools”.
SOUTH CAROLINA: Senators grilled the state superintendent for allowing taxpayer-funded scholarships to go toward homeschooling despite explicit legislative exclusions in the law.
OHIO: A lawmaker backtracked on a proposal to withhold funding from school districts suing over vouchers, after mass backlash from educators and attorneys.
ALABAMA: The Senate passed a bill requiring “sexual risk avoidance” education, prioritizing abstinence and prohibiting instruction on obtaining abortions or contraceptives.
TENNESSEE: The House passed legislation allowing schools to display the Ten Commandments alongside historical documents like the U.S. Constitution.
MISSISSIPPI: A new House bill would double the cap on taxpayer-funded tax credits for donations to private schools, despite opposition from public school advocates.
NEW MEXICO: A committee advanced a bill for universal childcare that would require co-payments from high-earning families under certain economic conditions.
MASSACHUSETTS: Childcare providers warned the Governor’s universal pre-K goal for 26 cities by the year’s end is a “pipe dream” due to staffing shortages.
IOWA: House Republicans passed a 2% per-pupil funding increase, which Democrats criticized as “forced austerity” that fails to keep pace with inflation.
MICHIGAN: The DOJ opened an investigation into three districts for including “gender ideology” in their curricula and policies on intimate single-sex spaces.
SOUTH DAKOTA: The Senate backed a statewide ban on student cellphone use during the school day to improve mental health and academic performance.
Elections & Voting
Voter access and intimidation have become a primary flashpoint as states move to either shield their election procedures from federal interference or align more closely with the Administration’s view.
Voting Processes
ARIZONA: A Republican plan to require ICE agents at every polling place sparked widespread fears of voter intimidation in communities with large minority populations.
OHIO: Voting rights groups sued the Secretary of State over a law that allows registration cancellations without notice during the 90-day “quiet period” before elections.
OKLAHOMA: The State Election Board refused a DOJ demand for protected voter data like Social Security numbers, sparking support from local groups.
FLORIDA: A bill requiring proof of citizenship to register to vote advanced, despite concerns it could disenfranchise out-of-state college students.
NEW MEXICO: The House passed a law aiming to prevent federal troops or law enforcement from interfering in the state’s elections and obstructing polling place access.
ALABAMA: The Senate unanimously passed a bill to streamline the process for formerly incarcerated residents to have their voting rights restored.
KENTUCKY: A committee backed a constitutional amendment to restore voting rights to people who have completed sentences for many nonviolent felony convictions.
Redistricting
VIRGINIA: A judge blocked an April redistricting referendum after Republicans argued Democrats “cut procedural and legal corners” to fast-track a new map.
UTAH: An effort to repeal the state’s anti-gerrymandering law hit a major milestone, submitting over 200,000 signatures to potentially reach the November ballot.
COLORADO: A Democratic group launched a ballot initiative for a temporary congressional map in response to “election-rigging” efforts in Republican-led states.
MISSOURI: A judge ruled the Governor had the authority to call a special session that resulted in a gerrymandered congressional map favoring Republicans.
MARYLAND: U.S. House Minority Leader Hakeem Jeffries visited Annapolis to push for a redistricting bill that has been stalled in committee purgatory.
Legislative Walkouts And Rhetoric
Procedural drama and inflammatory campaign rhetoric have come to the forefront this week, with parties using walkouts and long-bill readings to stall agendas.
OREGON: Senate Republicans staged a brief walkout to protest the rescheduling of a transportation tax referendum, nearly running out the clock on a legal deadline.
WASHINGTON: A Republican senator killed clean energy legislation by demanding a 39-page bill be read aloud.
MICHIGAN: A GOP gubernatorial candidate was condemned for repeatedly threatening to publicly hang elected officials for “treason” after they went against his platform.
WISCONSIN: In his final State of the State address, Governor Tony Evers rejected a GOP tax cut plan and urged lawmakers to remain in session.
ALASKA: U.S. Senator Dan Sullivan gave a highly partisan speech to state lawmakers while facing protesters who accused him of supporting federal overreach.