Governor Newsom threatens tax revolt as Trump targets California funding

California Governor Gavin Newsom on June 6 raised the idea of the state potentially withholding tens of billions of dollars in annual federal tax contributions in response to reports that President Donald Trump is preparing sweeping cuts in funding that would disproportionately target California, according to POLITICO.

Newsom’s remarks followed a CNN report that Trump is weighing a “full termination” of federal grants to California’s universities. The Democratic governor responded on X (formerly Twitter), pointing to California’s outsized contributions to federal coffers.

“Californians pay the bills for the federal government. We pay over $80 BILLION more in taxes than we get back,” Newsom wrote, citing data from the Rockefeller Institute, which found that in 2022, California sent roughly $83 billion more to Washington in federal taxes than it received in return.

“Maybe it’s time to cut that off,” he added.

Asked about Newsom’s comments, Trump campaign spokesperson Kush Desai downplayed any immediate funding cuts but harshly criticised California’s policies.

“The Trump administration is committed to ending this nightmare and restoring the California Dream,” Desai said in a statement. He added, “No final decisions, however, on any potential future action by the Administration have been made, and any discussion suggesting otherwise should be considered pure speculation.”

Desai accused California of pursuing “lunatic anti-energy, soft-on-crime, pro-child mutilation, and pro-sanctuary policies,” and said those policies justify Trump’s consideration of funding cuts.

This isn’t the first time Trump has used federal funds as political leverage against California. Just last month, he threatened to withhold money from the state if it allowed a transgender athlete to compete in a girls’ high school track event.

Newsom’s statement marks an escalation in his public opposition to Trump, even as his administration seeks financial support from Washington. In May, the governor blamed federal tariffs for creating a $16 billion hole in the state budget. Despite this, he has requested federal disaster relief to respond to recent wildfires in Los Angeles and has quietly reached out to Trump officials to discuss potential support for California’s struggling film industry.

The idea of withholding taxes gained traction elsewhere in the state on Friday. Assembly Speaker Robert Rivas posted a similar message on the social media platform Bluesky, just before Newsom’s post went live.

Rivas described the rumoured cuts as “unconstitutional and vindictive,” and wrote: “We’re the nation’s economic engine and the largest donor state, and deserve our fair share. I’ll use every legal and constitutional tool available to defend CA — we must look at every option, including withholding federal taxes.”

State Senate President Pro Tem Mike McGuire also weighed in on June 6, vowing to defend California from “this President’s illegal and unprecedented attack on our state.” But unlike Newsom and Rivas, McGuire stopped short of endorsing the idea of withholding tax payments.

California officials have considered similar strategies in the past. In 2017, then-Senate President Kevin de León proposed a tax credit plan that would have allowed Californians to offset federal tax increases targeting the state.

Meanwhile, the conversation around withholding federal tax payments isn’t confined to California. In New York, two Democratic mayoral candidates — former Assemblymember Michael Blake and state Senator Jessica Ramos — floated the same idea during a primary debate on June 4.

By Tamilla Hasanova