California Threatens Withholding Federal Taxes Over Funding

California Governor Gavin Newsom has threatened to withhold federal tax payments from the state in response to reports that President Donald Trump may cut federal funding over California’s opposition to federal policies, including those on transgender athletes and energy. Newsom highlighted that Californians pay over $80 billion more in federal taxes than the state receives, arguing the state should not be penalized for its positions. Legal experts question Newsom’s authority to stop federal tax payments, though the idea has gained some support among state leaders. The Trump administration has not finalized any funding cuts but has criticized California’s policies and suggested it may use federal funds as leverage. Analysts warn that a tax revolt would have historical precedents and could backfire both economically and politically. No state has successfully withheld federal taxes since the Civil War, and any attempt would likely result in major legal battles.