Treasury Secretary Scott Bessent sharply rebuked California Governor Gavin Newsom on June 8, warning that if Newsom withholds federal tax payments—citing California’s $80 billion net contribution versus receipts—it would amount to criminal tax evasion. Bessent labeled the governor’s proposal “extremely reckless,” reminding state officials that failing to remit taxes owed to the U.S. Treasury is illegal and carries personal liability.
Newsom floated the idea in response to reports that the Trump administration might slash funding for California’s universities and other federal grants. He asserted Californians “pay the bills” for the federal government and proposed cutting payments if Washington cuts back. Bessent urged Newsom to follow a pro-growth, low-tax model akin to President Trump’s, rather than pursuing what the Treasury termed a “criminal” path.
California Assembly Speaker Robert Rivas echoed Newsom, calling federal funding cuts “unconstitutional and vindictive,” and urged exploration of withholding options. In contrast, the White House denied any final decisions on funding cuts, though Trump officials have already slashed flood prevention funds and criticized California’s progressive policies.
The dispute highlights a deepening fight between state and federal governments. Conservatives leaders warn that Newsom’s proposal undermines the rule of law and national fiscal discipline. The administration’s response frames it as an important stand in support of taxpayer responsibility and constitutional order.
