Friday, July 25, 2025

President Trump’s domestic policy law will create big budget problems for many states and cities. Budget shortfalls aren’t new, and neither is the playbook that leaders usually follow. They make across-the-board cuts to programs and raise fees and maybe taxes. Inside government agencies, they emphasize sharing the pain: implementing hiring freezes, instituting furlough days for public employees and laying off workers based on seniority. Nobody is happy, but at least the approach is equitable and minimizes disruption. This is the wrong playbook. Those who follow the across-the-board approach will end up cutting teachers or raising subway fares while protecting jobs that could have been automated years ago. The public is already frustrated with government for unkept promises and often sluggish services. If our leaders simply manage cuts to avoid upheaval, that frustration will only rise. Now is the time for intelligent disruption.

 

The Cities and States That Are Getting It Right


Robert Gordon and 

Mr. Gordon was a senior official in the Biden and Obama administrations. Ms. Pahlka is a former U.S. deputy chief technology officer and the author of “Recoding America.”

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