New Jersey Gov.-elect Mikie Sherrill is signaling a bold challenge to President Donald Trump’s administration, suggesting the state could consider withholding federal tax dollars.
Speaking on The Weekly Show podcast with comedian and New Jersey native Jon Stewart, Sherrill called the prospect a “good idea,” adding, “I think about that all the time.” She elaborated, “I talk often about clawing back federal money. I mean the easiest place to start with that is in the courts.”
Sherrill did not provide specifics on how New Jersey would withhold federal funds, but her comments indicate a willingness to use her governorship to contest Trump directly. The idea mirrors prior suggestions by California Gov. Gavin Newsom, who has explored the possibility of withholding federal dollars but acknowledged the legal and practical challenges.
“I would love to start reworking the federal taxation system,” Sherrill said. “If they’re not going to run the programs, then what are we paying them for? You’re paying us for a service, and they’re not delivering, so let’s stop paying for it.”
New Jersey historically contributes more in federal taxes than it receives back, according to recent analyses, a disparity that became a central issue during the governor’s race.
Trump’s abrupt cancellation of the $16 billion Gateway rail tunnel under the Hudson River last month drew sharp criticism from Sherrill, who framed the decision as emblematic of federal mismanagement.
A four-term Democratic congresswoman, Sherrill resigned from her House seat Thursday, November 20, 2025, ahead of her swearing-in as New Jersey’s 57th governor. She defeated Republican Jack Ciattarelli earlier this month in a closely watched contest seen nationally as a measure of Trump’s influence.
Sherrill explained her focus on New Jersey residents, telling Stewart, “That’s not who I’m going to serve as your governor. I’m going to focus on serving the people of New Jersey. That has always been my north star, and that is what I’m going to continue to fight to do.”
Her remarks, though largely rhetorical for now, may signal a more confrontational approach to federal-state relations under the new administration.
Legal experts note that withholding federal taxes would be unprecedented and face serious constitutional and logistical hurdles, as individuals and businesses—not states—pay federal taxes directly.
