California Governor Gavin Newsom is moving to block former President Donald Trump's $1.776 billion "anti-weaponization fund" by imposing a 100% tax on any payout received by state residents. The announcement was made during a press conference on Wednesday, with Newsom taking to social media to criticize the fund.
Background of the Fund
In May, the Department of Justice (DoJ) unveiled a fund intended to compensate alleged "victims of lawfare and weaponization." However, the criteria for qualifying under this category remain unclear. The fund originated from a settlement between Trump and the Internal Revenue Service (IRS) after the president sued over his leaked tax returns.
Criticism and Controversy
Critics, including Newsom, have denounced the fund as a "boondoggle" designed to funnel money to Trump's allies. Speculation suggests that beneficiaries could include individuals arrested during the January 6, 2021, siege of the U.S. Capitol. The Trump administration has referred to these rioters as patriots and has pardoned many of those charged in connection with the attack.
"People who assault cops and overthrow democracy don't deserve a taxpayer-funded payday," Newsom wrote on X, following his press conference.
Administration of the Fund
Five individuals appointed by the U.S. attorney general will oversee the $1.776 billion, which will be drawn from a fund typically used to pay court judgments. Acting Attorney General Todd Blanche described the fund as a means "to make right the wrongs that were previously done." Quarterly reports detailing who has received monetary relief and in what amounts will be submitted to the attorney general. Claims must be filed by December 1, 2028, after which any remaining funds will revert to the federal government, according to the DoJ.
The DoJ has not yet responded to requests for comment on how it would address Newsom's proposed tax.
Ongoing Feud
This move marks the latest chapter in the long-standing and bitter feud between Newsom and Trump. The two politicians have frequently exchanged barbs in the press and on social media, clashing over various issues in California, including the federal deployment of ICE agents, healthcare fraud handling, and election integrity.
