California Gov. Gavin Newsom (D-CA) vowed Wednesday to impose a 100 percent [1] state tax on payments Californians receive from a federal fund.
The move targets recipients of the Department of Justice anti-weaponization fund, which Newsom characterizes as a "slush fund" tied to the events of Jan. 6. By taxing the full amount of these payouts, the state seeks to neutralize the financial impact of the federal program within its borders.
Newsom announced the policy on May 27, targeting a fund that has been valued between $1.776 billion [2] and $1.8 billion [3]. The governor framed the measure as a rejection of federal efforts to use government resources for political purposes.
"I will levy a 100 percent tax on any money that Californians receive from the anti‑weaponization fund," Newsom said [1].
The governor linked the fund to the political interests of former President Donald Trump. He said that the state should not facilitate the distribution of these specific federal assets to its residents.
"This fund is a direct attempt by the former president to weaponize the federal government for his own political gain, and California will not be a conduit for it," Newsom said [4].
The proposal creates a direct conflict between state tax authority and federal disbursements. While the federal government manages the distribution of the $1.8 billion [3] pool, California intends to reclaim those specific funds from the individual recipients through the state's tax code.
“"I will levy a 100 percent tax on any money that Californians receive from the anti‑weaponization fund."”
This policy represents an aggressive use of state taxing power to counteract federal spending priorities. By implementing a 100 percent tax, California is effectively attempting to nullify the benefit of federal payouts for its residents, likely setting the stage for a legal challenge regarding whether a state can tax a federal payment to the point of total erasure.
