“The Trump administration will withhold $1.3 billion in federal Medicaid payments from California, Vice President JD Vance announced on Wednesday, saying the state had failed to combat fraud in the public health insurance program,” the New York Times reports.

New York Gov. Kathy Hochul (D) announced that legislative leaders have reached a handshake agreement on a $268 billion budget that will include funding to expand child care and a new tax on multimillion-dollar second homes in New York City, the New York Times reports.

A bill banning white-only housing passed the Pennsylvania House, despite not a single Republican supporting the measure, WHTM reports.

The bill would close a loophole in the state that could let white nationalist groups establish communities under the guise of a private club or member-only organization.

“Voters frustrated by one-party control in Republican states over the last decade have increasingly turned to citizen-sponsored initiatives to enact policies that their legislatures won’t. They expanded Medicaid, adopted paid sick leave, raised the minimum wage and safeguarded access to abortion,” the New York Times reports.

“Now, the legislators are striking back.”

“In North Dakota, Utah and South Dakota, legislatures are sponsoring measures on the November ballot that would raise the threshold for approving citizen amendments to 60 percent, not a simple majority.”

“In Missouri, the legislature placed a measure on the ballot that would set an even higher bar: Citizen-sponsored amendments to the state constitution would have to win in each of the state’s eight U.S. House districts.”

Despite her landslide win in last year’s election, new Virginia Gov. Abigail Spanberger (D) is barely polling above water, according to a new Washington Post-Sshar School poll.

New York Times: “The Trump administration sued the Minnesota Education Department and the state group in charge of interscholastic athletics on Monday, accusing both of violating civil rights protections for girls by allowing transgender students to participate on girls’ sports teams.”

Texas Speaker Dustin Burrows (R) says he is entertaining the idea of expanding the state by annexing some New Mexico counties, The Guardian reports.

Tennessee state Sen. Paul Rose (R) told a Jewish journalist he would punch him in the face after being accused of “doing Israel’s bidding as they push us into war,” Mediaite reports.

Said Rose: “You know, if I was at home, I’d bust your face right now, but I’m not.”

New York Times: “Juneau, Alaska, takes pride in providing services that some larger cities would shy away from…”

“But the system that has made that possible — a steady flow of revenue from oil production — is cracking like Arctic ice in spring, not just in Juneau, Alaska’s capital, but across the state. Even with the war in Iran sending oil prices sky high, the oil-dependent model that has financed generous public services while giving Alaskans annual checks from a Permanent Fund can no longer keep both promises.”

“And a political year that will include a wide-open governor’s race and one of the most watched Senate contests in the country could help decide the future of what has become known in some circles as a ‘petrostate,’ for its public reliance on oil production, on the brink.”

Wall Street Journal: “Plans for a 3,000-bed prison on 815 acres of rocky pasture south of the broad Arkansas River, led by Republican Gov. Sarah Huckabee Sanders, face an unlikely rebellion from a group of MAGA conservatives. The feud has gone from nasty to nastier, and both sides say they are following what President Trump would want.”

California lawmakers are considering renaming Cesar Chavez Day, a state holiday, in light of sexual assault allegations against the late labor leader, Politico reports.

“Michigan House Speaker Matt Hall (R), who’s been criticized for blocking bills to make the Legislature’s records available to the public, claimed Tuesday to have won a transparency award from an organization that might not exist,” the Detroit News reports.

“Colorado’s Democratic governor, facing a pressure campaign from President Donald Trump, is signaling his openness to granting clemency to a former county clerk who was convicted in a scheme that attempted to find proof of fraud in the 2020 presidential election,” the AP reports.

“A social post by Gov. Jared Polis brought swift rebuke Wednesday from the state’s attorney general, secretary of state and the association representing local election officials, who said such an action by the governor would send the wrong message to anyone seeking to interfere with elections ahead of this year’s midterms.”

Politico: “President Donald Trump’s 2024 gains in New Jersey gave Republicans in the state hope they could pull off an upset in last year’s race for governor — but the opposite happened. They now have the slimmest legislative minority since Watergate and the Republican gubernatorial candidate they were so bullish about got shellacked by 14 points.”

“Now, some are looking to Christie, the only statewide Republican officeholder of the last 25 years, for answers. The two-term former governor is hitting the fundraising circuit, giving his theory for why New Jersey Republicans faced a near extinction-level event in the 2025 election and providing his roadmap to win back voters. His message is simple: Stop trying to win on national issues.”

“Democrats in the state Senate and Assembly will formally propose higher income tax rates for wealthy New Yorkers, putting them at odds with Gov. Kathy Hochul’s stance against hikes,” Politico reports.

“State lawmakers next week are expected to formally unveil their non-binding budget resolutions, which set the public parameters of the high-stakes budget negotiations. The tax hike proposals, which have not been previously reported, are in line with New York City Mayor Zohran Mamdani’s push to raise rates on people who earn more than $1 million a year as he pushes to close a $5.3 billion city budget gap.”

Wall Street Journal: “California’s proposed billionaire tax has rattled its wealthiest residents and spurred fears the state could lose some of its most valuable taxpayers. It has divided Democratic leaders and sparked debate, admiration and derision around the country. It isn’t even on the ballot yet.”

“First, the union behind the proposal must convince 875,000 registered voters to sign a petition to get on ballots in November. Then, it has to convince a majority of the state’s voters to pass it and impose a one-time 5% wealth tax on residents with net worth above $1 billion.”