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State’s governor looks to thwart US president’s plan to divert money to allies, including January 6 rioters

California governor Gavin Newsom is looking to thwart Donald Trump’s $1.776bn “anti-weaponization fund” by imposing a 100% tax on any payout received by state residents.

In May, the Department of Justice (DoJ) announced a fund to compensate alleged “victims of lawfare and weaponization”. It’s unclear who qualifies under this category.

The fund was the product of a settlement reached between Trump and the Internal Revenue Service (IRS) – the agency the president sued over his leaked tax returns.

Critics, including Newsom, have slammed the fund as a “boondoggle” designed to divert money to Trump’s allies. Speculation has swirled that its benefactors could include the individuals who were arrested in the 6 January 2021 siege of the US Capitol. The Trump administration has described the rioters as patriots and since pardoned many who were charged in relation to the attack.

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[-] LesserAbe@lemmy.world 28 points 7 hours ago

It doesn't say they would only tax jan 6ers, it says any state residents who receive a payout

[-] ByteJunk@lemmy.world 1 points 20 minutes ago

Yeah but the issue is that wealthy people don't follow the same rules. They'll create a company or something out of state to funnel that money to their pockets without Cali ever knowing.

It's only the poor people who get fucked.

[-] fizzle@quokk.au 25 points 6 hours ago

Yes, but the types of people Trump needs a slush fund to pay, are the types of people that can arrange to receive the money in the most advantageous jurisdiction.

this post was submitted on 28 May 2026
309 points (100.0% liked)

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