Gov. Newsom Responds To Pres. Trump’s Proposed Cut To CA Federal Funding By Suggesting To Withhold Federal Taxes

Governor Gavin Newsom responded to President Donald Trump’s proposed federal tax cuts to California on Friday by suggesting that the state withhold paying taxes to the federal government.

In a statement on X, Newsom explained that California pays more to the federal government than it gets back, arguing that Trump needs California tax money to fund other projects. According to federal and state records, California paid $83.1 billion more in federal taxes than it received in federal funding in 2022.

“Californians pay the bills for the federal government,” posted Newsom. “We pay over $80 BILLION more in taxes than we get back. Maybe it’s time to cut that off President Trump.”

The most recent spat has been building up over the last several weeks. The Trump administration has cut California-based spending including over $120 million in flood prevention projects and is about to end $4 billion in funding for California High-Speed Rail. Last week, funding was also threatened over allowing transgender athletes to compete in a state athletic tournament. However, on Friday, it severely escalated with Trump announcing even larger cuts to the state. Specifically, the Trump Administration is following the lead of earlier Harvard University and Columbia University actions by ending all federal grant funding for the University of California and California State University systems.

In a statement, the White House said that they haven’t made any final decisions, but went after California on several issues, including immigration. They also hinted that the state would still receive funding from the federal government as well, but only towards programs in line with federal goals.

“No taxpayer should be forced to fund the demise of our country,” explained White House spokesman Kush Desai. “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.

“California has 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.”

Many Californian Democratic lawmakers joined Newsom in firing back against the administration, going so far as to say that they would go over evert possible legal avenue to stop any kind of funding cut.

“This is unconstitutional and vindictive. We’re the nation’s economic engine and the largest donor state, and deserve our fair share,” said Assemblyman Robert Rivas (D-Hollister) on Blue Sky. “I’ll use every legal and constitutional tool available to defend CA — we must look at every option, including withholding federal taxes.”

“California sends more money to the federal government than we get back,” posted Senator Adam Schiff (D-CA). “Cutting off federal funding to the fourth largest economy in the world hurts us all — Republicans, Democrats, and Independents. In areas that are rural, urban and suburban. I urge this administration to reverse course. If not, we will fight this tooth and nail.”

“Whatever cruel crusade the President may announce against California, we will fight back,” added Congresswoman Nancy Pelosi.

Meanwhile, Republican lawmakers looking at working with the administration and the state to get the essentials California needs, but also have the state prove that they need the funding going in. Specifically, GOP lawmakers want California to justify why they need federal funding for certain things. While some areas would be expected to continue getting at least current funding levels, like military spending, other areas could prove harder for the state to justify.

“I recently met with university representatives who were concerned about the future of their funding,” explained Congressman Darrell Issa (R-CA). “Every university, every research organization, pretty much I saw them passing through here the last two days. We’re going to advocate for essentials, but I sent them back and said come to me with specifics. Come to me with the grant and the justification, and I’ll advocate for that. But I’m not going to advocate for no cuts; you just get more money every year. That’s how we got in this problem.”

As of Friday evening, neither side has moved significantly forward with their threatened actions.