California’s governor has declared his state will fully tax any money distributed to residents from the Trump administration’s $1.8 billion compensation fund targeting alleged victims of political persecution, according to an announcement made Wednesday.
Governor Gavin Newsom stated his intention during public remarks, saying “One thing I think we’re going to try to do … is tax 100%. Anyone from California who receives any of those funds, we want to tax 100% of those proceeds and that’s an action the state of California can take. It’s an action we look forward to taking.”
The governor’s office took to social media to label the $1.776 billion compensation program as a “slush fund.”
Newsom provided no timeline for when California would begin implementing this taxation policy.
Neither the White House nor the Justice Department offered immediate responses when asked for comment.
The compensation program emerged from a legal settlement between U.S. President Donald Trump and the Internal Revenue Service, following Trump’s lawsuit against the agency for releasing his tax information to news outlets.
More than 1,500 individuals connected to January 6 received presidential pardons from Trump last year. Many of these defendants are now tallying expenses from their legal proceedings, incarceration periods, and lost businesses while seeking reimbursement for what they consider misconduct by the Justice Department during former President Joe Biden’s tenure.
This unprecedented compensation effort already faces court challenges from two law enforcement officers who protected the U.S. Capitol during the January 6, 2021 riots.
Both Democratic and some Republican lawmakers have raised concerns about the fund’s legal foundation, particularly questioning a settlement provision that permanently prevents the IRS from conducting future audits of Trump, his family members, and his business enterprises.
Republican Senator Thom Tillis of North Carolina criticized the program, stating “(The fund) could potentially compensate someone who assaulted a police officer, admitted their guilt, got convicted, got pardoned and now we’re going to pay them for that? That’s absurd.”
