More States Expected to Decouple From Trump’s Tax-Cutting Agenda

Lawmakers in Delaware, Illinois, Michigan, Pennsylvania, and Rhode Island took on a task that most states ignored last year: passing legislation to separate from the tax-cutting features of President Donald Trump’s signature 2025 law.

Now governors and legislators in nearly two dozen states are examining the strategies adopted by these early responders, acknowledging they also must confront the revenue challenges posed by the president’s tax-and-spending law from July. Even states planning to adopt some or all of the federal changes understand they may have to modify their tax codes to streamline administration.

The question of whether to decouple or conform ...