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

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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