Congress should stop paying states

Published March 21, 2026 8:00am ET



Federal debt takes the United States into the unknown, pushing the boundaries of how far financial markets are willing to lend to our government. And when lawmakers spend a trillion dollars more than they collect in revenue, it sounds like they are enthusiastic to find the limits of federal debt.

The prudent course is to spend less. Congress should start with its grants to states, which now account for a third of state government spending. States can do everything Uncle Sam funds without that money. And it would be better if the federal government did less and state governments did more. 

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