Sacramento, CA – California Governor Gavin Newsom declared Wednesday that the state intends to tax 100% of any payments received by California residents from President Donald Trump's recently established Anti-Weaponization Fund. Speaking at a news conference in Sacramento, Governor Newsom stated the state's clear intention to reclaim the entirety of these proceeds.
"Anyone from California that receives any of those funds, we want to tax 100% of those proceeds. And that's an action the State of California can take." — Gavin Newsom, California Governor
"Anyone from California that receives any of those funds," Newsom said, "We want to tax 100% of those proceeds and that's an action the state of California can take. It's an action we look forward to taking." The governor did not specify an effective date for the proposed tax.
The $1.776 billion Anti-Weaponization Fund was created as part of an agreement where President Trump dropped a $10 billion lawsuit against the IRS concerning the leak of his tax returns. The fund is designed to compensate Americans who can demonstrate they were unfairly targeted by government actions and will be overseen by five individuals appointed by the U.S. attorney general.
The fund's creation has ignited controversy. Supporters argue it provides a legitimate avenue for redress for individuals subjected to government overreach. However, critics, particularly Democrats, express concerns that the fund could disburse payments to individuals charged or convicted in connection with the January 6, 2021, Capitol riot, a group President Trump had previously pardoned en masse upon re-entering the White House. Governor Newsom amplified this criticism in a post on X, linking the pardons to the fund's establishment. "He pardoned all of those folks that were beating up cops and absolved them, providing them 1.776 billion dollars. So not only do you get a pardon, you get rewarded," Newsom wrote, asserting, "That’s why this is needed." Newsom's office further characterized the fund as a "Jan. 6th slush fund" in official communications.
The Justice Department quickly responded to Newsom's announcement. Natalie Baldassarre, a spokesperson for the department, issued an email statement criticizing the governors of California and New York. "Instead of flaunting their love of lawfare and taxing constituents into oblivion, Governors Hochul and Newsom should focus on preventing more of their residents from fleeing in droves to free states with lower taxes, less crime, and governments that actually serve the people they represent," Baldassarre stated.
Republicans within California also criticized Governor Newsom's proposal, drawing attention to what they describe as a pattern of questionable fiscal management. California Republican Senate Minority Leader Brian Jones previously labeled a $25 million California legal fund, created by Newsom to combat "legal warfare" from the Trump administration, as a "slush fund."
Broader scrutiny of Newsom's financial record includes a Kaiser Health News investigation that reported California awarded billions of dollars in emergency contracts during the pandemic to firms with ties to donors, political allies, and well-connected insiders. Critics argued that the state's emergency procurement system allowed these taxpayer-funded contracts to be awarded with limited competition and oversight. The governor's proposed tax comes as California faces an estimated $2.9 billion shortfall for the 2027 fiscal budget.
Furthermore, Newsom's administration has faced sustained criticism over the state's infrastructure spending. California's high-speed rail project, for example, carries an estimated cost of $128 billion with no operational track yet laid. A wildlife crossing bridge also garnered ridicule after exceeding its budget by $21 million, prompting Transportation Secretary Sean Duffy to publicly label it a "bridge to nowhere."
California is not alone in its efforts to counteract the Anti-Weaponization Fund. Similar legislation proposing a 100% tax on fund payouts is being pursued in New Jersey and New York. New York State Assembly member Alex Bores has introduced a bill titled the Anti-Insurrectionist Act, specifically targeting these payments. The fund's creation has also drawn criticism from some Republican senators who have expressed anger at acting Attorney General Todd Blanche regarding the arrangement.
Governor Newsom is widely considered a strong contender for the Democratic presidential nomination in 2028. His frequent and public confrontations with the Trump White House have consistently kept him at the forefront of national Democratic politics. Fox News Digital reportedly reached out to both the White House and Newsom’s office for comment on the matter.
