Sacramento, California — California Gov. Gavin Newsom announced Wednesday that he plans to impose a 100% state tax on payments received by Californians from a controversial federal “anti-weaponization” compensation fund backed by President Donald Trump’s administration.
The proposed tax targets a $1.776 billion Justice Department fund created after a settlement involving Trump and the Internal Revenue Service over the leak of the president’s tax returns. The Department of Justice said the fund is intended to compensate alleged “victims of lawfare and weaponization,” though the agency has not publicly clarified who specifically qualifies for payments.
Critics, including Newsom, argue the program could financially benefit Trump allies and individuals charged in connection with the January 6, 2021 Capitol riot. Trump has repeatedly defended many of the defendants involved in the attack and issued pardons to numerous participants after returning to office.
“People who assault cops and overthrow democracy don’t deserve a taxpayer-funded payday,” Newsom wrote on social media while unveiling the proposal during a news conference.
The Justice Department said five individuals appointed by the attorney general will oversee the distribution process. Quarterly reports detailing who receives payments and how much they receive are expected to be submitted to the attorney general through 2028.
The dispute marks another escalation in the ongoing political conflict between Newsom and Trump, who continue to clash over immigration enforcement, election policy, and federal intervention in California affairs.
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