Below is a link to an article in the New Republic. It's kind of long, so I'll give you the gist of it.
The author, Kevin Baker, suggests an approach that is sort of half secession, economically and politically. I'll get into exactly what he suggests in a minute, but he says there are three regions that could do this: Northeast through Virginia, West Coast, and mountain Colorado and New Mexico.
What he suggests is that when Republicans want to shrink the Federal government, we say Great! As much as possible. We want to pay as little in Federal taxes as we possibly can. Eliminate whatever you want, just as long as we all save the cost of whatever you eliminate.
And we raise state and local taxes and do what we want on a state level.
Here's why it works:
Generally speaking, the blue states pay more in federal taxes than they get back while the red states get more from the federal government than they pay in federal taxes. The red states are the ones getting the free ride and yet they're the ones complaining. Mississippi sends roughly 25% of what they get from the federal government back to Washington in the form of taxes.
So, if we do this, the blue states have more money to work with, so we can afford more. The red states have the opposite situation but they're the ones complaining about the federal government. They want less taxation and more states' rights.
So let's give them exactly that.
They're preventing us from doing what we want, including helping their poor people. Instead of wringing our hands, let's acknowledge that we can't because we don't have the votes and, given how inept we've been politically, we're not likely to get them any time soon.
People would still be able to move between states like they can now.
It's an intriguing idea. Baker goes into way more detail. Unusually, this approach might actually be possible because we'd be taking a red state approach to the Federal government.