Holly Honderich is a news correspondent for the British Broadcasting Corporation.
Legislators in Florida voted to strip Disney of its self-governing status due to a political clash between the company and the governor.
Disney was given the power to control utilities and build roads on the lands of its theme park.
The entertainment conglomerate did not reply.
The move is seen as revenge for Disney's opposition to a bill that bars primary school classrooms from discussing sexual orientation.
The state House passed a bill on Thursday that would remove the company's near-total power over the special district where its theme park is located. The Senate had already passed it.
The Reedy Creek Improvement District was created in a deal between the state and the Disney Company.
The measure will be signed by the governor. The special district of Disney will be dissolved on June 1, 2023.
Disney could build its own airport or nuclear power plant if it wanted, because of its special status, which allowed it to operate as its own municipal government, with its own board of supervisors and fire department.
It gave the entertainment giant freedom from almost all bureaucratic intervention for half a century and is thought to have saved it tens of millions of dollars in taxes and fees.
Disney chose to build its theme parks in Florida because it has become the state's largest private employer with 80,000 jobs.
The relationship between Disney and the state of Florida was under threat because of its response to the gender and sexuality education bill.
Critics dubbed the Parental Rights in Education Law "Don't Say Gay" It prohibits any instruction about sexual orientation or gender identity between kindergarten and third grade.
When not age-appropriate or developmentally appropriate for students, it calls on school districts to avoid LGBT topics. The legislation gives parents the power to file lawsuits against schools if they believe an teacher has broken the law.
Proponents of the law say it protects children from inappropriate content, while opponents say it will stigmatise LGBT youth.
Disney was under pressure from employees to oppose the policy, so it reversed course.
Disney promised to push for its repeal after it became law.
The company, which has made Florida its home, had crossed the line according to Mr. DeSantis.
Republican lawmakers in the US Congress said they would oppose renewing the company's copyright on Mickey Mouse in 2024 because of Disney's political and sexual agenda.
The political skies are cloudy in the state, and it could be the smoke from the culture wars below.
A general's eagerness for combat and a politician's eye for opportunity are what Governor Ron DeSantis is leading a charge with.
Florida-based Disney is only the latest target in his crosshairs, and the so-called "Don't Say Gay" bill just one of a string of Conservative laws with Tallahassee origins grabbing national headlines.
The state banned maths textbooks because they were deemed inappropriate for the classroom. The bill that made it easier for parents to challenge books and instructional materials they don't like was supported by Mr DeSantis. Proponents say it gives parents a say in their children's education. Proponents say it is simply censorship.
The governor vowed to take on the company's board of directors over their tussle with Musk. The state pension fund in Florida holds about a million shares, which may help explain Mr DeSantis' interest.
He recently signed into law a ban on abortions after 15 weeks of pregnancy with no exemptions for rape or incest.
The next US presidential election day is 5 November, 2024, and that's when the flurry of bills aimed at exciting conservative voters boiled down to.