Newsom Proposes 100% Tax on Trump Fund Recipients
California’s Democratic Governor, Gavin Newsom, is advocating for a complete tax on any Californians who receive funds from President Donald Trump’s newly established anti-weaponization fund. This action follows criticisms that Newsom is effectively running a “slush fund.”
At a press conference, Newsom stated, “Anyone receiving these funds from California will be taxed 100%. It’s something the state can do, and we intend to move forward with it.”
His firm opposition to the $1.78 billion fund, which its proponents claim is nonpartisan, comes amid speculation about his potential candidacy for the presidency in 2028.
Critics have labeled the fund a “profiteer,” alleging that it primarily benefits Trump’s allies.
A significant concern voiced by Newsom and other Democrats is that the fund may potentially reward individuals convicted or charged in relation to the January 6, 2021, Capitol riot. On his first day in office, Trump pardoned over 1,500 rioters.
Newsom shared his thoughts on social media, saying, “He pardoned those who assaulted law enforcement and then offered them $1.776 billion. So, you receive both a pardon and a reward.” He emphasized the urgency of the situation.
However, his criticisms have been met with accusations of hypocrisy from Republicans and conservative voices online, who suggest that Newsom has directed state funding toward politically affiliated spending programs, effectively running his own “slush fund.”
One program under scrutiny is the $25 million California Legal Fund, created by Newsom to counter what he described as a “legal war” waged by the Trump administration. Republican Senate Minority Leader Brian Jones criticized this as another example of a “slush fund.”
Newsom has also faced harsh criticism during California’s 2021 recall election over the state’s no-bid contracts associated with COVID-19. A Kaiser Health News investigation revealed that billions were awarded to companies linked to political allies and well-connected figures, raising concerns about the lack of oversight in the emergency procurement process.
As California grapples with an estimated $2.9 billion budget shortfall for 2027, Newsom’s proposal to tax recipients of the fund has come to the forefront.
In the wake of the Justice Department’s announcement regarding the fund, prompted by a legal agreement between Trump and the IRS, some Democratic lawmakers from New York are working on legislation to block the fund altogether, while a Connecticut lawmaker has suggested implementing a 100% tax on any gains.
Efforts have been made to reach out to both the White House and Newsom’s office for additional comments.
