Trump preparing large-scale cancellation of federal funding for California, sources say

[BumRushDaShow]

Source: CNN Politics

Updated 4:18 PM EDT, Fri June 6, 2025


CNN — The Trump administration is preparing to cancel a large swath of federal funding for California, an effort that could begin as soon as Friday, according to multiple sources. Agencies are being told to start identifying grants the administration can withhold from California. Sources said the administration is specifically considering a full termination of federal grant funding for the University of California and California State University systems.

“No taxpayer should be forced to fund the demise of our country,” White House spokesman Kush Desai said in a statement Friday afternoon, criticizing California for its energy, immigration and other policies. “No final decisions, however, on any potential future action by the Administration have been made, and any discussion suggesting otherwise should be considered pure speculation.” Singling out one state for massive cuts would be an unusual move, but President Donald Trump has long made Democratic-led California a target.

Just last month, he threatened to withhold federal funding from California over a transgender athlete’s participation in a sporting event — the latest example of the president trying to use funding as leverage to enact his agenda. The administration recently cut $126.4 million in flood prevention funding projects, and Trump repeatedly went after the state’s handling of devastating wildfires earlier this year. The president and California Gov. Gavin Newsom have also publicly feuded for years. Two sources said that the administration is targeting California universities over alleged antisemitism on campus, an issue the schools have made efforts to address over the past year.

The administration has already taken steps to punish Harvard and Columbia universities for similar reasons. The UC system is the state’s third largest employer, and both systems are major engines of research in the biotechnology and medical fields, among others. It is unclear how the school systems plan to fight back, though it is possible they could be represented by the state’s attorney general, Rob Bonta, a Democrat. CNN has reached out to Bonta’s office, the UC system and the CSU system for comment.

Read more: https://www.cnn.com/2025/06/06/politics/trump-california-federal-funding

[Henry203]

1. Stop paying federal taxes

Is a net gain for California.

[LauraInLA]

20. How? We can't refuse to pay our individual taxes.

[hlthe2b]

32. Laura, except for self-employed or if you underpay your taxes & pay

what is owed at tax time, YOU do NOT pay directly to the IRS. Your employer does. So if CA REQUIRED businesses to INSTEAD submit those payments to a state-overseen ESCROW account until and IF an agreement is reached with FEDs with court approval, then the administration would very quickly see how much California means to the rest of the nation. I'd expect a very quick reversal of Trump's actions toward CA and/or a court-ordered settlement to that effect. At that point that escrow account would release those funds to IRS, complete with all records.

[LauraInLA]

33. Sorry. I only asked you once. I find your idea interesting.

[hlthe2b]

2. Maybe it is time to redirect Californians to divert their Federal tax payments back to the State...

Last edited Fri Jun 6, 2025, 09:41 PM - Edit history (1)

If California businesses did that for six months, as the world's fourth biggest economy, the WH would be screaming like a pig.

Could it be done sans official secession? Who knows, but every damned thing this administration is doing now is either blatantly unconstitutional, unprecedented, or both, so...

[LauraInLA]

21. How would we do that?

[hlthe2b]

23. Governor and State Legislature pass legislation requiring previous Federal taxes be submitted to state with state taxes

and along with State Sales taxes. Have it routed to a secured escrow account--if and only until the FEDS relent and a legal court-overseen agreement is achieved. Read my previous post, as I admit there is no path that would not likewise suggest (threaten) secession. Nuts? Unprecedented? Unconstitutional? Sure. But it would take time to fight it out, and by that time, the FOURTH largest WORLD's economy would have deprived Federal coffers at an unprecedented rate, and the WH AND SCOTUS WOULD fold on Trump's UNCONSTITUTIONAL act of taking all legally designated funding away from California.

Given we are living in a time when the first 120 days have brought one unconstitutional act after another after another--INCLUDING the aforementioned attempt to deprive California of all previously approved funding-- this Coloradoan would strongly suggest California not only take legal action but seriously look at "out of the box" possibilities. At this point, I would not even rule out regional action that could readily include California, WA, OR, Colorado, New Mexico and a regional alliance among the NE and Mid-Atlantic and upper Midwestern states.

If Trump (or even Vance, should he somehow take over) proceeds with such illegal, unconstitutional, and destructive actions at the intense rate they have, then failure to think worst-case scenario will almost assuredly bring it to us. Call me hyperbolic but I do not intend to bury my head and hope for the best.

[homegirl]

26. Worlds FOURTH largest

economy. I suspect the estimated federal income tax deduction is not automatic and can be withheld from automatic deduction, if not increase dependents deduction to 10, or more!.. FICA probably cannot. Good possibility Oregon, Washington and New York would join in.

[hlthe2b]

30. Businesses collect those taxes from all who are typically employed.

It is not the individual (except for the self-employed) who sends their taxes to IRS--except for underpayments owed at tax time). If CA (yes, illegally from a FEDERAL perspective) requires businesses to instead forward those payments to an ESCROW account held by California, until such time the state and FEDS come to an agreement, court-ordered or independent.

Yes, it would all but amount to a threat of secession, but if these states that are being extorted do not think in worst case scenarios at the same time they go all "in" on court challenges, then that worst case scenario will surely come.

[Meadowoak]

28. 4 th largest economy in the world. California recently edged out Japan for 4th.

[hlthe2b]

31. Yes. I see that. All the more powerful case for CA to make.

[Iamscrewed]

3. For the good of the many

This administration needs to be canceled and jailed.

[Tarzanrock]

4. It's time for some real leadership from Gavin Newsom.

The criminal, lawless Turd would never have dared to do this if Jerry Brown was Governor of California.

[chowder66]

13. Gavin Newsom Suggests That "Maybe It's Time" To Cut Off California's Share Of Federal Taxes Amid Report That Trump Seeks

to cancel State grants.

California Governor Gavin Newsom fired back at Donald Trump after CNN reported that the administration was seeking to cut off federal money to the state.

“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, @realDonaldTrump,” Newsom wrote on X.California Governor Gavin Newsom fired back at Donald Trump after CNN reported that the administration was seeking to cut off federal money to the state.

“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, @realDonaldTrump,” Newsom wrote on X.



https://www.yahoo.com/news/gavin-newsom-suggests-maybe-time-213806620.html

[Karasu]

24. Fucking do it. It's no crazier or more implausible than anything these fascist loons have subjected us all to over the

last 5 months.

They want to single out a specific state without precedent? That's on them. They're the reason there is no precedent anymore. CA should do whatever they have to do in response.

[Magoo48]

36. Time for we Californians to direct all our federal taxes to Sacramento.

[msongs]

16. real leadership from gavin newsom. like, maybe give trump an open mic on his blog? nt

[vrguy]

5. Easy

Stop withholding and paying federal taxes!

[travelingthrulife]

18. How? We each pay directly to IRS. Doesn't go through the state.

[zorbasd]

6. Here we go people, the war on CA

is about to begin.....like now.

[Yo_Mama_Been_Loggin]

15. It'll be all the blue states

The whole west coast voted against the slob father.

[Tarzanrock]

7. Newsom should execute an "executive order" that the California State Franchise Tax Board ...

will now be the recipient of all Federal Taxes withheld by any employer which does business in California. Two can play the Turd's silly unconstitutional "executive order" game.

[FirstLight]

10. I wish!

Newsom has been very disappointing as of late, this could be a chance for him to actually... I don't know.. protect our state!?

[travelingthrulife]

19. He did set aside milllions specifically to fight Traitor Trump.

[LauraInLA]

22. I don't know how this would work.

[bucolic_frolic]

8. I'm sure Californians pay their taxes. This is absolutely outrageous & likely illegal.

[Meadowoak]

29. more than any other state.

[JoseBalow]

9. drumpf's CA properties may need some scrutiny

[magicarpet]

11. Up the property taxes of any land or buildings djt owns in California by 1,000%.

See how King trDUMP likes thems avocados 🥑.

[Botany]

12. Clueless Fucking Idiot

Congress has the power of the purse.

[Karasu]

25. They have been trying to bypass that since Day One, with mixed results.

[andym]

14. GOP has 9 CA seats in Congress: perhaps they would object

and even not support the "big beautiful" ugly monstrous bill.

[mahina]

17. Translation: he is afraid of Newsome?

[Irish_Dem]

27. Trump wants a civil war.

[The Grand Illuminist]

37. We are too afraid to give it to him.

#1 problem.

[Irish_Dem]

38. Fascists instill fear in the populace.

To keep them compliant.

[The Grand Illuminist]

41. We have the numbers.

It is just the moral compass is way off.

[Bread and Circuses]

34. I've expected this. TACO wants to destroy the #4 economy in the world....for Putin

[Irish_Dem]

35. Trump must destroy anything that is powerful and good.

Healthcare, science, education, the economy, etc.

[Canada Kid]

39. Biggest economy in the US???? Freeze paying Federal taxes Now!

They just can't go after everybody at the same time. Divert all federal tax payments to a temporary "tax account", held until Trump and his assholes are gone. Imagine....if you could time travel JFK....non of this crap would be going on.

[BumRushDaShow]

40. The businesses that employ people and collect federal taxes from employees

would have to do that.