California Governor Gavin Newsom is taking bold action to block Donald Trump's $1.776 billion 'anti-weaponization fund' by proposing a 100% tax on any payouts received by state residents. The fund, announced by the Department of Justice (DoJ) in May, is intended to compensate alleged victims of 'lawfare and weaponization', though the criteria for qualification remain unclear.
Background of the Fund
The fund originates from a settlement between Trump and the Internal Revenue Service (IRS) after the president sued over the leak of his tax returns. Critics, including Newsom, have labeled the fund a 'boondoggle' designed to funnel money to Trump's allies. Speculation suggests beneficiaries could include individuals arrested during the January 6, 2021, Capitol siege, whom the Trump administration has described as patriots and subsequently pardoned many.
Newsom's Response
In a Wednesday post on X, Newsom stated, 'People who assault cops and overthrow democracy don't deserve a taxpayer-funded payday.' He announced his tax plan during a news conference, aiming to prevent state residents from receiving any financial benefits from the fund.
The $1.776 billion will be managed by five appointees of the US attorney general and drawn from a fund typically used for court judgments. Acting Attorney General Todd Blanche described the fund as a way 'to make right the wrongs that were previously done.' Quarterly reports on payouts will be sent to the attorney general, and claims must be filed by December 1, 2028, after which remaining funds revert to the federal government.
The DoJ has not commented on how it would address Newsom's proposed tax. This move marks another chapter in the ongoing feud between Newsom and Trump, who have clashed over issues such as ICE agent deployment, healthcare fraud, and election integrity in California.
