Newsom Vows to Levy 100% Tax on California Recipients of Trump’s $1.8 Billion ‘Slush Fund’

Taxes | May 28, 2026

Newsom Vows to Levy 100% Tax on California Recipients of Trump’s $1.8 Billion ‘Slush Fund’

Gov. Gavin Newsom indicated that he would need action from the Democratic-led California Legislature to impose the new tax. If adopted, the measure would likely face legal challenge.

By Iris Kwok
Los Angeles Times
(TNS)

SACRAMENTO, Calif. — Gov. Gavin Newsom has threatened to tax 100% of the money Californians receive from President Trump’s “anti-weaponization” fund for his political allies.

Trump’s Justice Department had announced last week that it would establish a $1.776-billion fund to compensate allies of the president who claim they have “suffered weaponization and lawfare” under the Biden administration’s Justice Department.

“Anyone from California that receives any of those funds, we want to tax 100% of those proceeds,” the governor told reporters Thursday.

“That’s an action the state of California can take … (and) it’s an action we look forward to taking.”

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Just how Newsom would do so remains unclear. He indicated that he would need action from the Democratic-led California Legislature to impose the new tax. If adopted, the measure would likely face legal challenge.

The fund has prompted outrage from Democrats and some Republicans—including Sen. Mitch McConnell (R-Ky.), who said in a statement that the “slush fund,” which would “pay people who assault cops,” was “utterly stupid.”

Newsom’s remarks about Trump’s settlement fund came as he signed a bill designed to prevent election interference ahead of Tuesday’s primary.

Photo caption: Gov. Gavin Newsom delivers his final May budget revision as governor on May 14, 2026, at the Capitol Swing Space building. (Hector Amezcua/The Sacramento Bee/TNS)

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©2026 Los Angeles Times. Visit at latimes.com. Distributed by Tribune Content Agency LLC.

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