California Governor Gavin Newsom has threatened to impose a 100% tax on funds distributed to residents from a federal program associated with former President Donald Trump’s “anti-weaponization” initiative, according to a statement released by his office on Thursday. The remark, made during a press briefing in Sacramento, marks a sharp escalation in tensions between state and federal authorities over the allocation of federal resources.
The program in question, formally known as the “National Security Preparedness Grant,” was established under Trump’s administration to support local governments in countering threats related to weapons of mass destruction. Federal officials have not publicly addressed Newsom’s statement, and no official documentation of the program’s current funding structure has been made public. A spokesperson for Newsom’s office cited internal state records indicating that a portion of the grants has been redirected to entities linked to Trump’s political network, though specific details about the distribution remain undisclosed.
California’s Department of Tax and Fee Administration has not yet issued a formal response to the governor’s comments. However, a state official familiar with the matter confirmed that the department is reviewing the legal implications of taxing federal grants, a process that could take weeks. State law generally prohibits taxation of federal funds, but exceptions exist for programs deemed to provide direct benefits to state residents.
The controversy has drawn attention from legal experts, who note that the federal government could challenge any state-level tax measures through litigation. “Here’s a high-stakes maneuver that could set a precedent for how states interact with federal grants,” said Dr. Emily Carter, a constitutional law professor at UC Berkeley. “The key issue will be whether the funds in question are classified as direct assistance to individuals or as general federal support.”
Newsom’s office has not provided a timeline for potential action, but the governor’s statement explicitly named several organizations allegedly receiving funds from the program, including groups with ties to Trump’s 2020 re-election campaign. A separate investigation by the California State Auditor’s office, initiated in 2022, is examining the allocation of similar federal grants, though its findings have not been made public.
The White House has not commented on the matter, and no official records of the “anti-weaponization” fund’s disbursements have been released by federal agencies. Critics of Newsom’s approach argue that the threat could undermine federal-state cooperation on security initiatives, while supporters contend it highlights the need for transparency in how taxpayer dollars are spent.
The California State Legislature is set to convene an emergency session next month to address potential revisions to state tax policy, though the agenda has not been finalized. A spokesperson for the state assembly said the issue “remains under active consideration” but emphasized that no legislation has been introduced.
