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NCSL briefing flags federal moves on permitting, SNAP, taxation and prediction markets
Summary
Brian Wonkoo of the National Conference of State Legislatures told the Senate committee that pending federal actions on permitting, SNAP administration, online sales tax rules and emerging prediction markets could shift costs and authority to states.
RICHMOND — Brian Wonkoo, senior legislative director for budgets and revenue at the National Conference of State Legislatures, briefed the Senate committee on federal legislative and regulatory developments that could affect Virginia's budget and administrative responsibilities.
"There's a lot going on at D.C.," Wonkoo said, summarizing key items including permitting reform, an expected Federal Energy Regulatory Commission interconnection rule, farm bill provisions affecting SNAP and state administrative burdens, and federal proposals that could reshape state tax bases.
He warned that proposed federal changes to online sales tax collection and interstate corporate tax definitions could erode state tax bases and complicate long-standing state approaches that followed the Wayfair decision. On emerging markets, Wonkoo described prediction markets as "walking like a duck" and flagged the Commodity Futures Trading Commission's jurisdictional role, saying states could lose traditional gaming revenue to new products taxed differently.
Why it matters: Federal actions can impose new compliance and verification requirements on states or shift revenue streams. Wonkoo emphasized risks that states could face higher administrative costs for programs such as SNAP and Medicaid if federal rules change verification timelines or error-rate thresholds.
Specific federal items he highlighted included:
- Permit and interconnection rulemaking that may centralize parts of grid-connection review at the federal level. - Farm bill language and SNAP provisions that could shift cost and verification burdens to states and may require additional state administrative capacity. - Possible erosion of sales and corporate tax bases under interstate proposals discussed in Congress.
Committee members pressed for specific follow-ups. Wonkoo offered to supply additional material and noted NCSL's work compiling state experiences, inviting legislators to the NCSL legislative summit for deeper briefings.
Sources and next steps: Wonkoo said NCSL is tracking FERC, the farm bill text, and federal discussions on Wayfair-related issues and offered to provide supplemental reports to the committee.
