California Governor Gavin Newsom has announced plans to impose a 100% tax on any payouts received by state residents from Donald Trump's $1.776 billion 'anti-weaponization fund'. The move is intended to thwart the US president's scheme, which critics say will divert money to allies, including those involved in the January 6 Capitol riot.
The fund, established in May by the Department of Justice (DoJ), aims to compensate alleged 'victims of lawfare and weaponization', though it remains unclear who qualifies. It stems from a settlement between Trump and the Internal Revenue Service (IRS) after the president sued over his leaked tax returns.
Newsom has condemned the fund as a 'boondoggle', suggesting it could benefit individuals arrested during the 2021 Capitol siege. 'People who assault cops and overthrow democracy don't deserve a taxpayer-funded payday,' he wrote on X. The Trump administration has pardoned many of those charged in connection with the attack.
The $1.776 billion will be managed by five appointees of the US attorney general and drawn from a fund typically used for court judgments. Acting Attorney General Todd Blanche said the fund aims 'to make right the wrongs that were previously done'. Quarterly reports on recipients will be sent to the attorney general, with claims closing after December 1, 2028.
The DoJ has not commented on how it would address Newsom's proposed tax, which marks the latest clash in a long-running feud between the two politicians over issues including immigration enforcement, healthcare fraud, and election integrity.
