Gov. Gavin Newsom (D-CA) said Wednesday he will impose a 100% state tax on any California residents receiving payments from a fund tied to former President Donald Trump [1].
The move represents a direct fiscal confrontation between the state government and federal-level financial distributions linked to the former president's legal and political activities. By targeting these specific payments, Newsom said he aims to ensure that state residents do not benefit from funds associated with the Jan. 6 Capitol attack [1], [3].
Newsom announced the plan on May 27, 2026, targeting a fund described as an anti-weaponization fund [1]. The governor's office intends to levy the maximum possible tax rate of 100% [1] on any money flowing from this source into the state.
Reports on the total size of the fund vary slightly between sources. The Los Angeles Times reported the fund is valued at $1.8 billion [1], while The Silicon Review cited a figure of $1.776 billion [3]. The fund is linked to allegations regarding the weaponization of the Department of Justice and the events surrounding the Jan. 6 Capitol attack [1], [3].
Under the proposed measure, any individual in California who receives a disbursement from the fund would owe the entire amount back to the state in taxes [1]. This would effectively nullify the financial gain for the recipient.
This action follows a pattern of California using state tax code to signal opposition to federal policies or figures. The administration said its focus remains on preventing the use of state residency as a shield for those benefiting from the fund [1], [3].
“Newsom vowed to impose a 100% state tax on any California residents receiving payments from a fund tied to former President Donald Trump.”
This proposal utilizes the state's taxing authority as a political and legal tool to discourage the distribution of specific federal or private funds. By setting the tax rate at 100%, California is not seeking to generate revenue so much as it is attempting to create a financial deterrent, effectively blocking the flow of these specific assets into the state's economy.
