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States With Democratic Trifectas Are Failing to Meet the Moment
After the disappointing results in November, Democrats in blue states should be using their power to show how government can make life better for working people.
Apr 07, 2025
The anger and frustration Americans are feeling toward the Democratic Party reached a boiling point earlier this month, after ten Senate Democrats joined the Republicans in voting for a federal funding bill that slashes everything from disaster relief to school meals for our kids. Presented with an opportunity to stand up for working people, Senate Democrats immediately tossed in the towel. But the Democratic leadership crisis isn’t limited to the U.S. Capitol. In states where Democrats hold the majority, the reasons they’re losing working people become painfully clear.
Over the first two months of the new administration, we’ve seen states with Democratic trifectas and supermajorities duck for cover. Instead of exercising their power to make life better for working people and respond to the devastating actions at the federal level, they’ve kowtowed to corporate lobbyists and wealthy donors.
Look at Delaware—a bright blue state with a governing trifecta—where Democrats worked hand-in-hand with Elon Musk’s lawyers to land Musk a $56 billion pay package. Displeased with a court ruling that denied his bloated Tesla pay package, Musk made good on his threat to move the company’s copyright registration to Texas. But he didn't want to leave without his payday, and state Democrats were eager enablers.
Any person living in these blue states should be demanding that their governor, attorney general, and state legislatures use their power to stand up to Trump and Musk.
Democratic spines in other blue trifecta states are no sturdier. In Colorado, Democrats have advanced a bill to slash the tipped minimum wage, which could result in $8,000 a year in lost income for full-time food service workers. Directly to the south, in New Mexico, Democrats compromised their own paid family and medical leave bill that now leaves too many working-class state residents behind.
During the election, Donald Trump and Musk were able to capitalize on the Democrats’ disregard for working-class voters. However, it hasn’t taken long for Trump and Musk to show their true face. They’re already signaled their plans to make deep cuts to Medicaid, Medicare, and Social Security. Republicans have no interest in governing on behalf of working people. Democratic pundits from across the spectrum have emphasized the need for Democrats to put working people at the center of the party. But the Democrat’s lack of a coherent message or plan of action to address the Trump-Musk destruction is pushing away those exact voters.
The steady drift of working-class people from the Democratic Party is the reason the Working Families Party was founded 27 years ago. And in the absence of a clear plan from Democratic leaders, WFP legislators are stepping up to fill the void. In Rhode Island, WFP legislators are pushing a 13-point agenda that, among other things, guards against cuts to Medicaid, lowers the cost of healthcare, and protects tenants against retaliatory evictions. In New York, WFP legislators are fighting to pass the Working Families Tax Credit, which will put money back into the pockets of working families. And in Philadelphia, housing protections enacted by Working Families Party City Council members have led to a 41% drop in eviction filings over the last year.
After the disappointing results in November, Democrats in blue states should be using their power to show how government can make life better for working people. Yet after months of soul-searching and post-mortems, the lessons of the past election have quickly worn off.
As Indivisible points out in their handbook, there are nine more states with Democratic trifectas than there were in 2017, and the 15 states with trifectas are major economic powerhouses making up nearly half of the country’s gross domestic product.
Any person living in these blue states should be demanding that their governor, attorney general, and state legislatures use their power to stand up to Trump and Musk. They have the ability to protect residents and ensure uninterrupted access to the services and benefits we all need. Waving the white flag and enabling their money grab doesn’t show working people that you’re in their corner.
Democratic legislators in triple blue states can choose to be courageous, unlike many of their congressional counterparts. In state after state, Working Families Democrats are putting forward a plan of action. It’s on their fellow legislators to follow their lead.
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Delaware Just Caved to Billionaire Bullying By Overhauling Its Corporate Law
As Musk is trying to gut the agencies that enforce federal regulations, state corporate law is poised to become even more important. Delaware should have held firm.
Mar 27, 2025
While Elon Musk attacks federal agencies’ ability to protect us from the worst excesses of corporate power, a little known Musk initiative sailed through the Delaware legislature this week. Delaware’s corporate law drew Musk’s ire when its well-regarded Court of Chancery sided with Tesla shareholders and tossed out his $56 billion pay package. Musk packed up his Tesla toys and moved the company’s incorporation to Texas, but his lawyers still pushed Delaware lawmakers to twist the state’s laws to suit his oligarchic interests and give him more power over our lives.
The Delaware House passed Senate Bill 21 (SB 21) on March 25, after the Delaware Senate passed it on March 13. Governor Matt Meyer, who played a central role in the bill’s passage, promptly signed it into law.
Most companies operate under Delaware’s corporate law, with about two-thirds of S&P 500 companies incorporated in the state, and most corporate lawsuits occur in Delaware’s special Court of Chancery. And as corporate interests have eroded many federal tools of corporate accountability—like federal financial, environmental, and worker safety regulations—Delaware corporate law has become one of the last mechanisms of corporate accountability, especially for shareholder lawsuits. Now, as Musk is trying to gut the agencies that enforce federal regulations, state corporate law is poised to become even more important.
Insulating the self-serving decisions of corporate insiders from challenge and gutting the federal agencies and protections that hold corporate power accountable are two sides of the same coin.
Regular shareholders like working peoples’ pensions can bring lawsuits challenging corporate misconduct. But corporate law gives directors and officers broad latitude to make decisions free from liability—even if they are very costly to the corporation and its stakeholders. Courts, however, look more closely at decisions by corporate insiders—including controlling shareholders like Musk, Mark Zuckerberg, and private equity firms that often retain significant stakes in companies after they take them public—when there are conflicts of interest.
The case challenging Musk’s $56 billion Tesla pay package was one of those instances. Upset that a Delaware judge ruled against him in that case, Musk disparaged her and Delaware courts, reincorporated Tesla and SpaceX in Texas, and called on others to do the same.
Corporate insiders convinced Delaware legislators that they were in a hostage situation: Either overhaul their state’s corporate law to give more power to Zuckerberg, private equity firms, and other corporate insiders to everyone else’s detriment by passing SB 21 immediately, or face a mass exodus of corporations and a corresponding slashing of their state budget. Delaware Rep. Madinah Wilson-Anton said, “Our budget is being held hostage and we’re supposed to just listen to the demands, but we have not been told who they’re coming from.”
However, since SB 21 would make it much harder for regular shareholders to hold insiders accountable for their self-serving actions in Delaware courts, many organizations representing regular shareholders have spoken out against the bill, saying its passage would make Delaware less attractive as a state of incorporation. Rep. Wilson-Anton noted: “When we continue to pass bills that are catering to a very small minority of companies that have lost in court and are upset they lost in court, it creates an environment where other companies say, ‘You know what, we’re just gonna stay in our home state because Delaware is just a state where the highest bidder gets to write the law.’” Meanwhile, a recent poll found that only 16% of Delaware voters believe that SB 21 should have passed as is and 63% are less likely to vote for legislators who back SB 21.
Rewriting Delaware corporate law at the behest of Musk and other corporate insiders makes no sense. Insulating the self-serving decisions of corporate insiders from challenge and gutting the federal agencies and protections that hold corporate power accountable are two sides of the same coin. Heads Big Tech oligarchs win, tails the rest of us lose. As the former head of the Office of Information and Regulatory Affairs K. Sabeel Rahman said, “a world without government isn’t a world where we’re not being governed. It’s just we’re being governed in a super undemocratic way.”
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Alarm Bells Ring as Delaware 'Radically' Shifts More Power to Corporate Insiders
"The Delaware lawmakers that enacted S.B. 21 are lapdogs for corporations and Musk," said one expert at the Open Markets Institute.
Mar 26, 2025
While Democratic Gov. Matt Meyer declared that "Delaware is the best place in the world to incorporate your business, and Senate Bill 21 will help keep it that way," critics reiterated concerns about the corporate-friendly state legislation he signed this week.
The Delaware House of Representatives sent the Senate-approved S.B. 21 to Meyer's desk on Tuesday in a 32-7 vote, with two members absent. The Delaware Business Timesreported that the governor "arrived in Dover to sign the measure into law less than two hours after it passed," and "the bill signing was closed to the press."
The bill sailed through the Delaware General Assembly despite anti-monopoly, economic, and legal experts blasting it as a "corporate insider power grab" and accusing state legislators of choosing "billionaire insiders—like Elon Musk and Mark Zuckerberg—over pension funds, retirement savers, and other investors."
Delaware Working Families Party (WFP) political director Karl Stomberg said in a Wednesday statement that "at a time when rank-and-file Democrats across the country are begging their leaders to stand up to" President Donald Trump and Musk, his billionaire adviser, Democratic lawmakers in the state "just gave Musk a $56 billion handout."
That's a reference to Musk's 2018 compensation package for his electric vehicle maker, Tesla, which a Delaware judge ruled against, prompting the richest billionaire on Earth to ditch the state and encourage other business leaders to do the same. Fears of a potential "Dexit" led to lawmakers' frantic effort to pass S.B. 21.
"The Working Families Party has been standing up against this proposed bill for weeks now, and we recognize the need to fight back against corporate overreach in our government," said Stomberg. "WFP electeds proposed serious amendments to address our concerns with the bill that would protect the people of Delaware, but the Democrats chose to side with Musk and vote them down."
"This bill is an indictment of the failed Delaware Way, which continues to allow big corporations and the ultrawealthy like Elon Musk and Mark Zuckerberg to enrich themselves at the expense of working people," added Stomberg.
Zuckerberg is the CEO of Meta, Facebook and Instagram's parent company. CNBC recently revealed that "a day after The Wall Street Journal published its story on Meta considering a Delaware departure, Meyer, who was brand new to the job, convened an online meeting with attorneys from law firms that have represented Meta, Musk, Tesla, and others in shareholder disputes in the state, according to public records obtained by CNBC. Other attendees included members of the Delaware Legislature."
"The following day, records show, Meyer invited a second group to meet with him and new Secretary of State Charuni Patibanda-Sanchez. That invitation went to Kate Kelly, Meta's corporate secretary, and to Dan Sachs, the company's senior national director of state and local policy," according to CNBC. "The invite also went to James Honaker, an attorney with Morris Nichols, a firm that's represented Meta in federal court in Delaware, and to William Chandler, former chancellor of the Delaware Court of Chancery, who is now part of Wilson Sonsini's Delaware litigation practice."
Just weeks after those meetings, the governor urged state lawmakers to swiftly pass S.B. 21. The Lever's Luke Goldstein wrote Wednesday that "the timing of the emails obtained by CNBC reveals clear motivations driving the current law which was rushed before the Legislature last month by the new governor: to let top executives off the hook for legal liabilities."
In earlier reporting, Goldstein highlighted that "Delaware, which has long been perceived as a billionaire playground and corporate tax haven, is the incorporation home to more than 60% of all Fortune 500 companies. That means, if enacted, the wide-ranging regulatory handouts in the bill will have sweeping consequences for corporate behavior across the country."
The Lever's founder, David Sirota, on Wednesday lamented the limited attention the Delaware law is receiving, compared with a major national security breach involving several top Trump officials' unsecure group chat about war plans. As he put it, "Cannot overstate how significant this is—while the national media is focused on the D.C. drama, a group of Democrats off the radar in a tiny state just radically shifted more power to the planet's largest corporations via world-changing legislation."
Daniel Hanley, senior legal analyst at the Open Markets Institute, said Wednesday that "the Delaware lawmakers that enacted S.B. 21 are lapdogs for corporations and Musk. How this one state came to control practically all of American corporate law is a long story, but regardless, Congress can and should take the power away."
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