Newsom Seeks 100% Tax on 'Anti-Weaponization Fund' Payouts

Move targets Trump-backed payouts to California residents
Posted May 28, 2026 1:00 AM CDT
Newsom Seeks 100% Tax on Trump Fund Payouts
California Gov. Gavin Newsom delivers his final state budget plan at the Capitol Annex Swing Space in Sacramento, Calif. on Thursday, May 14, 2026.   (Gabrielle Lurie/San Francisco Chronicle via AP)

California's governor just unveiled a plan to make sure President Trump's new federal payout fund doesn't put a dime in state residents' pockets, the Guardian reports. Gavin Newsom on Wednesday proposed a 100% state tax on any money Californians receive from Trump's $1.776 billion "anti-weaponization fund," set up by the Justice Department to compensate people who claim they were targeted by government "lawfare" or "weaponization." Similar legislation has been proposed in New York, and New Jersey could be next, Politico reports.

The fund stems from a settlement between Trump and the IRS over his leaked tax returns and will be overseen by five people appointed by the US attorney general. Critics, including Newsom, argue it's a political slush fund that could benefit Trump allies, potentially even some Jan. 6 defendants. "People who assault cops and overthrow democracy don't deserve a taxpayer-funded payday," Newsom posted on X. Acting Attorney General Todd Blanche has defended the fund as a way to "make right the wrongs that were previously done." The DOJ hasn't said how it might respond to California's proposed tax, which marks the latest escalation in the long-running Newsom-Trump feud.

In other Newsom news, the governor on Wednesday signed legislation aimed at protecting California elections from federal interference, as primaries loom in the state Tuesday, the AP reports. The law, effective immediately, bars anyone—even federal agents—from accessing voter rolls or election technology without a court order.

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