California Gov. Gavin Newsom says the state will move to tax any payments received by California residents from President Donald Trump’s newly created Anti-Weaponization Fund.
Speaking at a Sacramento news conference, Newsom said California would seek to tax 100% of those proceeds if state residents receive money from the fund.
“Anyone from California that receives any of those funds, we want to tax 100% of those proceeds,” Newsom said.
He added that the state has the authority to pursue such action and intends to move forward.
TRENDING TODAY
The fund has drawn controversy because Democrats argue it could benefit people connected to the January 6, 2021, Capitol riot.
Trump pardoned January 6 defendants after returning to office, and Democrats have accused the administration of creating a financial reward system for people they say should not receive taxpayer-backed compensation.
Newsom described the fund as a reward for people involved in violence against law enforcement and said California should prevent residents from keeping money from it.
The fund reportedly totals $1.776 billion and was created as part of a Justice Department arrangement after Trump dropped a lawsuit related to the leak of his tax records.
Supporters of the fund argue it is meant to compensate Americans who were unfairly targeted by the federal government.
Critics, including Newsom, argue it functions as a political payout and have described it as a slush fund.
The Justice Department pushed back against Newsom’s comments, accusing Democratic governors of using lawfare and high taxes instead of focusing on public safety and residents leaving their states.
California Republicans also criticized Newsom, pointing to the state’s own legal funds and spending controversies.
The debate comes as California faces budget pressure and as Newsom continues positioning himself as one of the Democratic Party’s most aggressive opponents of Trump.
Other Democratic-led states, including New York and New Jersey, are also reportedly exploring similar efforts to impose a 100% tax on payments from the fund.
In New York, legislation has been introduced to target the payouts through what sponsors call an anti-insurrectionist tax measure.
Newsom’s announcement is likely to fuel another legal and political showdown between California and the Trump administration.
The key question now is whether the state can successfully impose such a tax and whether recipients would challenge it in court.
For Newsom, the move gives him another high-profile fight with Trump as speculation continues about his future national ambitions.
For Trump allies, the proposal will likely be framed as another example of Democratic states targeting conservatives through taxation and litigation.
Why It Matters
The fight over the Anti-Weaponization Fund is becoming another front in the broader battle between Trump and Democratic-led states. Newsom’s proposed 100% tax could trigger a major legal fight over state power, federal settlements and politically charged compensation funds.
What Comes Next
California lawmakers would likely need to advance legislation or a formal tax mechanism before the policy takes effect. If implemented, recipients of fund payments could challenge the tax in court, while other blue states may pursue similar measures.
Newsom said California wants to tax 100% of any payments received by state residents from Trump’s Anti-Weaponization Fund.
Q: “The ‘slush fund’ that you mentioned. Are you looking to take any action on it?”
Gavin Newsom: “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.” pic.twitter.com/SpN71Oydy3
— Breaking911 (@Breaking911) May 27, 2026
