This article attempts to analyse the neo-federalist commitment of the Bush administration. Most analysts focus on the creation of a new Department and the resulting governmental consolidation. In this article, however, the focus is on the neo-federalist consequences of the budgetary reforms pushed through Congress by the current administration. Just like Reagan in the 1980s, Bush tries to cut federal fundings in order to initiate a change in intergovernmental relations that would give States more leeway. Budgetary reforms are indeed at the very heart of the neo-federalist agenda. The political rationale for such a policy is domestic coalition-building: Bush skillfully used the 9/11 terrorist attacks to sharpen his anti-governmental views, thus strengthening his political base within conservative circles. This is the reason why Bush adopted such a confrontational approach regarding his tax cut proposals. Nevertheless, States are also the first victims of such policies : the current State budget crisis illustrates the success of Bush’s neofederalist reforms.