California Governor Gavin Newsom raised the possibility Friday of the state reconsidering its contribution of federal tax dollars, following reports that President Donald Trump is weighing deep cuts to funding programs that benefit California.
The remarks came on the heels of a CNN story claiming the administration is exploring a “full termination” of federal grants for California’s public university system — a potential move that would strike at the heart of the state’s higher education infrastructure.
In a pointed message shared on X, Newsom wrote, “Californians pay the bills for the federal government. We pay over $80 BILLION more in taxes than we get back,” citing a Rockefeller Institute study showing the state paid approximately $83 billion more to the federal government in 2022 than it received in return. “Maybe it’s time to cut that off,” he added.
The idea of using tax dollars as leverage gained traction quickly. Assembly Speaker Robert Rivas posted on Bluesky just before Newsom, arguing that withholding taxes may be warranted in the face of what he characterized as political retribution. “We’re the nation’s economic engine and the largest donor state, and deserve our fair share,” Rivas posted. “I’ll use every legal and constitutional tool available to defend CA — we must look at every option, including withholding federal taxes.”
A spokesperson for the White House, Kush Desai, downplayed any definitive decision but defended the administration’s critique of California’s policies. “The Trump administration is committed to ending this nightmare and restoring the California Dream,” Desai said. “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.” He went on to accuse the state of embracing “lunatic anti-energy, soft-on-crime, pro-child mutilation, and pro-sanctuary policies.”
Trump has repeatedly used the threat of withholding federal support as a political tool, including a recent episode in which he suggested slashing California’s funding if a transgender athlete were allowed to participate in a state track meet for girls.
The timing of Newsom’s proposal is notable, as he continues to voice opposition to Trump’s policies while simultaneously pursuing federal disaster funds for wildfire recovery and economic initiatives. Just weeks ago, Newsom attributed a $16 billion hole in California’s budget to Trump-era tariffs, even as he privately reached out to administration officials to discuss aid for the state’s struggling film sector.
State Senate President pro Tempore Mike McGuire also weighed in via X, condemning what he called “this President’s illegal and unprecedented attack on our state,” though he stopped short of endorsing the idea of withholding federal tax payments.
{Matzav.com}