“””Newsom suggests withholding federal taxes as Trump eyes California funding cuts”””
His remarks followed reports that Trump may pursue “large-scale” funding withdrawals from the state.
On Friday, Gavin Newsom floated the idea that California could withhold tens of billions in annual federal tax payments, responding to reports that Donald Trump is planning funding cuts aimed at the state.
Newsom’s comments came after CNN reported that the president was considering a “full termination” of federal grant funding for California’s universities.
“Californians pay the bills for the federal government. We pay over$80 BILLION more in taxes than we get back,” the Democratic governor posted on X Friday afternoon, citing a Rockefeller Institute analysis showing California paid about$83 billion more in federal taxes in 2022 than it received from Washington.
“Maybe it’s time to cut that off,” he added.
White House spokesperson Kush Desai, when asked about Newsom’s post, downplayed the likelihood of sweeping funding cuts but criticized California for what he called “lunatic anti-energy, soft-on-crime, pro-child mutilation, and pro-sanctuary policies.”
“The Trump administration is committed to ending this nightmare and restoring the California Dream,” Desai said in a statement. “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.”
Trump has previously used federal funding as leverage to influence California policy. Just last month, he threatened to block the state’s funding if a transgender athlete competed in a state girls’ track meet.
Newsom’s sharp remarks come as he ramps up criticism of Trump, even while seeking economic help from the White House. In early May, Newsom blamed tariffs for costing California$16 billion in its state budget, but he has also requested federal disaster aid for the Los Angeles wildfires and privately consulted Trump officials about supporting the state’s struggling film industry.
Assembly Speaker Robert Rivas also raised the idea of withholding federal taxes Friday in a Bluesky post shortly before Newsom’s comments. He called the rumored grant cancellations “unconstitutional and vindictive.”
“We’re the nation’s economic engine and the largest donor state, and deserve our fair share,” Rivas wrote. “I’ll use every legal and constitutional tool available to defend CA — we must look at every option, including withholding federal taxes.”
State Senate Pro Tem Mike McGuire likewise pledged to defend California from “this President’s illegal and unprecedented attack on our state” in an X post Friday, though he did not go as far as to suggest withholding federal taxes.
California leaders have previously explored ways to limit federal tax payments; in 2017, then-Senate President Kevin de León proposed a state tax credit plan to help residents avoid a federal tax hike targeting the state.
Similarly, two New York mayoral candidates—former state Assemblymember Michael Blake and current state Sen. Jessica Ramos—suggested withholding the city’s federal tax dollars during a Democratic primary debate Wednesday night.