Gov. Newsom threatens to withhold California tax dollars from the rest of the country following latest Trump threat
After reports surfaced that President Donald Trump was eyeing a large-scale sweep of federal funding from California, Gov. Gavin Newsom suggested the state may cut off its flow of funds to the rest of the country.
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"Californians pay the bills for the federal government. We pay over $80 BILLION more in taxes than we get back. Maybe it’s time to cut that off, ," the governor posted on X Friday afternoon.
The post came after CNN reported the president directed federal agencies to identify grant funding that could be blocked from the state. Republican California representatives were working on getting more information on the possible cuts as of Friday afternoon.
H.D. Palmer, a spokesperson for Gov. Newsom's Department of Finance, told KCRA 3 in an interview Friday afternoon that the federal government provides about $170 billion in grants across a variety of programs. The largest is $100.9 billion for medical assistance-related programs.
Palmer said the Newsom administration as of Friday afternoon did not yet have a sense of what exactly the sweeping cuts could entail.
"And that's because the only thing that has come from Washington about this so far is a lot of unattributed quotes and statements of intent. But no numbers, no spreadsheets, nothing real that you could actually analyze," Palmer said. "So at this point, it's a lot of rhetoric but not a lot to back it up. That's not to say that the administration may not come down later today or in the next few days to put out something that they think fulfills what they're talking about here."
When asked if California could logistically stop sending tax dollars to the federal government, as the governor suggested, Palmer replied. "The governor was making a very clear point: this isn't a one-way transaction."
Palmer pointed to the state's wealth, its 18 million taxpayers, and the state's economy, which ranks 4th globally.
"Because of our strength, because of our tech-based economy, we contribute mightily to the federal government and the nation's revenue source," he said. "What the governor I think was suggesting in the tweet is that [the president] may suggest and talk a tough game about taking away dollars, but if you really want to go down this road, let's have a serious discussion about how much California contributes to the national economy and to the national, Treasury in terms of the amount of tax dollars that Californians pay to the federal government."
Assembly Speaker Robert Rivas on BlueSky also suggested cutting off Californian funds from the federal government, but did not specify how.
"I'll use every legal and constitutional tool available to defend CA," he posted. "We must look at every option, including withholding federal taxes."
The latest funding fight comes days after the Trump administration decided to block $4 billion from the state's High-Speed Rail project and after the President threatened to cut off money from California after a transgender athlete placed first in two girls' high school track and field state championships.
KCRA 3 asked Palmer if this latest feud could result in yet another lawsuit between California and the Trump administration.
"I think this is just another inning in a very long game that has been going on since the beginning of the year," Palmer said. "The governor and elected officials, the attorney general, among others, have made it very clear that we're not going to back down from our values if there's a threat to California, we're going to stand up to it."