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House approves resolution urging Congress to let states redirect federal funds if they opt out of programs
Summary
HCR 5, a concurrent resolution calling on Congress to allow states to withhold and redirect federal income tax funds when they opt out of federal programs, passed the House after extended debate 51–22. Sponsors tied the measure to concerns about federal mandates and Medicaid expansion.
The Utah House on March 4 passed a concurrent resolution (HCR 5) urging Congress to allow states greater control over federal funds and to permit redirection of federal income tax funds when a state opts out of a federal program.
Representative Spendlove, sponsor of the resolution, framed HCR 5 as applying broadly to federal programs and as a response to concerns about the growth of federal influence and the fiscal impact of programs such as Medicaid. “If a state opts out of a federal program, it should be able to withhold and redirect federal income tax funds equivalent to the amount that would have been used to fund federal operations for the federal program in that state,” Spendlove said.
Members raised constitutional and practical concerns. Representative King urged opposition on grounds it undermines national unity and constitutional principles. Representative Andrey asked whether the resolution could be used to give the governor implicit authority to negotiate with Congress on Medicaid expansion; the sponsor said the resolution merely calls on Congress to change federal law and does not alter the governor’s negotiating authority. Representative Chavez Houck asked how withholding federal funds would practically work; the sponsor responded that the resolution calls on Congress to enable such an arrangement and that the funds originally come from Utah taxpayers.
Debate touched on fiscal projections and the growth of Medicaid’s share of the state general fund; Spendlove cited historic growth in federal aid and framed the resolution as a states’ rights measure. After discussion, the House approved HCR 5 by a vote of 51–22. The resolution will be transmitted to the Senate and to Utah’s congressional delegation as a formal statement of the Legislature’s position.
Because HCR 5 is a concurrent resolution, it does not change state law or direct any withholding without subsequent federal action or further state legislation. The sponsor said the resolution seeks a change in federal law to give states greater autonomy over federal funds.
