Data center crackdown: From Nashville to New York, cities and states are hitting pause on new artificial intelligence data centers over concerns about rising energy bills, noise, and strain on local infrastructure.
Pennsylvania ICE facilities: Lt. Gov. Austin Davis pledged this week that Gov. Josh Shapiro's administration will block two proposed ICE detention centers, setting up a direct clash with the Trump administration.
Michigan maternal aid: Michigan lawmakers are questioning whether $300 million in taxpayer-funded cash payments to pregnant women and new mothers had any guardrails to prevent fraud or misuse.
Chicago Bears deal: The Chicago Bears are eyeing a stadium in Indiana after talks with Illinois collapsed, and two state lawmakers are now drafting bills to bring them back without raising taxes.
Social Security clock: Federal trustees say the retirement trust fund runs dry in 2032.
Cities and states across the country are pausing new AI data centers
Photo: Brett Sayles / Pexels / Edited in Canva
What we found: At least four jurisdictions moved to pause new artificial intelligence data centers in the last week, spanning Tennessee, Wisconsin, Washington, and New York. New York's legislature approved a bill halting permits for data centers that need 20 megawatts of power or more. If Gov. Kathy Hochul signs it, New York would be the first state with a statewide pause. Seattle became the largest U.S. city to pass a construction pause after 98,000 residents submitted comments, almost all in support.
The stakes: Supporters of the pauses say unchecked data center construction drives up electricity bills for residents and small businesses. Opponents, including the National Taxpayers Union, say stopping construction cuts off communities from negotiating tax revenue and infrastructure improvements with developers before they even start.
The backstory: The wave of local and state action reflects a broader tension between the rapid expansion of artificial intelligence infrastructure and communities that feel they have no say in where it lands or what it costs them.
Where it stands: New York Gov. Hochul has until the end of 2026 to sign, veto, or amend the bill. Her office said she is reviewing the proposal and "continues to look for ways to ensure that data centers are not draining resources or driving up costs for New Yorkers."
3 States
Pennsylvania: Lt. Gov. Austin Davis told a conference of progressive activists in Philadelphia on Friday that the Shapiro administration will "use our power to halt" plans for two proposed federal immigration detention centers that could hold a combined 9,000 detainees. The standoff reflects a fight playing out in multiple states, where governors are testing how far state regulatory authority can go in blocking federal immigration enforcement infrastructure.
Michigan: Michigan lawmakers spent the week questioning the founder of Rx Kids, a first-in-the-nation program that has received more than $300 million in taxpayer funding since launching in 2024. The program puts no restrictions on how recipients spend the money. House Republicans say the program lacks basic eligibility checks, while supporters point to a peer-reviewed study showing fewer preterm births and lower neonatal intensive care unit admissions among participants.
Illinois: The Chicago Bears may be leaving Illinois. The team voted last week to pursue a new stadium in the Hammond, Indiana area, after a deal with Illinois lawmakers fell apart. Gov. J.B. Pritzker said Tuesday he is open to a special legislative session this summer to revive talks, but only if Illinois taxpayers are not on the hook for the cost. Two Republican state representatives are now drafting bills that would offer the team financial incentives while protecting local residents from higher property taxes.
2 Issues
Economy: Montana Gov. Greg Gianforte told The Center Square this week that he is actively recruiting businesses fleeing high-tax states, and he just landed a major one. Washington-based Janicki Industries announced an $800 million manufacturing campus in Great Falls that is expected to create 1,000 jobs in the first five years and more than 2,000 once complete. The company’s communications manager said Washington legislators are “out of touch with the realities of business.”
Energy: The U.S. Supreme Court on Monday threw out a lower court ruling that upheld Biden administration efficiency standards for furnaces and water heaters. The case goes back to the lower court for a new review. The Trump administration's solicitor general said the Department of Energy is considering a new rulemaking to replace what it called "factually and legally flawed" Biden-era rules.
1 Number
22%
Social Security's retirement trust fund is projected to run out of money in 2032, according to federal trustees. At that point, benefits for roughly 70 million Americans would automatically be cut by 22%. A U.S. House subcommittee met Wednesday to question the Social Security commissioner about the program's future. Lawmakers spent the two-hour hearing focused on office closures and customer service, not on how to prevent insolvency.
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