California Gov. Gavin Newsom (D) is pushing a new proposal that would impose a 100% state tax on Californians who receive money from President Donald Trump’s newly created Anti-Weaponization Fund.
The Democratic governor announced the plan during a Wednesday press conference, arguing that California should prevent residents from financially benefiting from the federal settlement program.
“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 proposal targets the $1.776 billion fund created through a Justice Department settlement involving Trump and the Internal Revenue Service.
Supporters of the fund argue it provides compensation for Americans who can prove they were unfairly targeted by the federal government.
However, critics have blasted the program, claiming it could provide financial payouts to Trump supporters and individuals involved in the events surrounding January 6, 2021.
Newsom highlighted those concerns in a post on X, linking the fund to Trump’s pardons and commutations.
“He pardoned all of those folks that were beating up cops and absolved them, providing them 1.776 billion dollars,” Newsom wrote.
“So not only do you get a pardon, you get rewarded. That’s why this is needed,” he added.
The proposal comes as Newsom continues positioning himself as one of the most outspoken Democratic critics of the Trump administration.
The California governor, who is widely viewed as a potential 2028 presidential candidate, has repeatedly clashed with Trump over immigration, climate policies, legal disputes and federal spending.
Republicans quickly criticized Newsom’s latest proposal, accusing him of attempting to politically target Trump supporters.
Conservative critics argued the tax would punish Californians who successfully prove they were wrongfully targeted by government agencies.
They also pointed to California’s own spending controversies, including a $25 million legal fund backed by Newsom to challenge Trump administration policies.
California Senate Minority Leader Brian Jones (R) previously described that fund as a “slush fund.”
Newsom has also faced criticism over California’s emergency spending decisions during the COVID-19 pandemic, including scrutiny involving billions of dollars in no-bid contracts awarded during the crisis.
The debate also comes as California faces financial pressure, with the state confronting a projected $2.9 billion budget shortfall for the 2027 fiscal year.
Critics have additionally pointed to major state projects that have experienced significant cost increases, including California’s long-delayed high-speed rail project, per Trending Politics.
Transportation Secretary Sean Duffy recently mocked another California infrastructure project as a “bridge to nowhere” after costs reportedly climbed millions over budget.
Newsom is not the only Democrat targeting the Anti-Weaponization Fund.
Democratic lawmakers in New York have introduced efforts aimed at blocking the payments, while a Connecticut state lawmaker has also pushed a proposal for a 100% tax on proceeds.
The fight is expected to become another major political clash between Trump and Democratic leaders as debates continue over government accountability, political investigations and compensation for those claiming they were unfairly targeted.
