Newsom Proposes 100% Tax on Trump’s Anti-Weaponization Fund Payments

California Governor Gavin Newsom announced Wednesday his plan to implement a 100% tax on all payments received by residents from President Donald Trump’s $1.776 billion anti-weaponization fund. This decision comes after Trump dismissed a $10 billion lawsuit against the IRS and set up the fund to “hear and provide redress for others who have been subjected to weapons and legal consequences.” Some observers suggest that Newsom’s initiative may be illegal since it potentially violates the Constitution, which prohibits imposing punishment without a trial.

“We want to tax those receiving these funds from California at 100% of their earnings,” Newsom stated during a news conference in his office, labeling Trump’s settlement money as a “slush fund.”

The original lawsuit was filed by Trump in a federal court in Miami back in January 2026, targeting the IRS and the Treasury Department. It stems from tax records from Trump’s early presidency that were leaked, raising allegations about mishandling of protected information.

Critics argue that the anti-weaponization fund seems designed to benefit Trump’s allies. In New York, Democratic state Representative Alex Boaz has also introduced a bill to tax these funds at 100%, which will be voted on soon. Boaz is vying for a Congressional seat, aiming to replace the retiring Congressman Jerry Nadler.

Similarly, Democratic state lawmakers in New Jersey are working on a bill aimed at imposing a 100% tax on funds received through the anti-weaponization scheme. New Jersey Senator Andrew Zwicker mentioned in an interview that he sees this approach as “a great antidote to President Trump’s corruption.”

On May 22, Trump defended the fund in a post on Truth Social, stating it aims to assist those “who are being horribly abused by the evil, corrupt, and weaponized Biden administration.”