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SACRAMENTO — California Gov. Gavin Newsom suggested Friday that the state may consider withholding federal tax payments after reports emerged that Donald Trump is weighing deep cuts to federal grant funding for California universities.

Newsom posted on X: “Californians pay the bills for the federal government. We pay over $80 BILLION more in taxes than we get back… Maybe it’s time to cut that off,” citing 2022 figures from the Rockefeller Institute.

The comment follows a CNN report that Trump may seek a “full termination” of federal education funding to California. White House spokesperson Kush Desai didn’t confirm any plans but called the state’s policies “lunatic” and said the administration would “restore the California Dream.”

Democratic state leaders voiced similar outrage. Assembly Speaker Robert Rivas and Senate Pro Tem Mike McGuire vowed to defend California’s interests, with Rivas also backing the idea of withholding federal taxes.

This isn’t the first time the state has floated such action. In 2017, a proposed tax credit scheme aimed to counter federal hikes targeting blue states like California.


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