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Honestly, that's probably the most effective thing that can be done.
In business, where it really hurts, is in the money. Hit them where it really matters.
If a company becomes too large to manage and kits subsidiaries make individual profits, some making profit and others at a loss, you divest. You sell off the crap companies. Makes sense to me. They say Trump wants to run the US like a business, right?
Does it really matter though?
Seems like the lost revenue would just be made up through borrowing / deficit spending. Worried this is another whiff of a move. Its not like I have a better solution; and I wish the states doing this the best of luck in addressing their finding issues, but I don't expect this to move the needle significantly.