Published by TrenBuzz.com | May 28, 2026
Key Points at a Glance – Newsom Joins New York to Tax Trump’s $1.8 Billion
- California Governor Gavin Newsom vowed to impose a 100 percent state tax on any anti-weaponization fund payouts received by California residents.
- New York Assemblyman Alex Bores proposed an identical 100 percent tax bill for New York recipients.
- A federal Senate bill called the SLUSH FUND Act adds a 50 percent penalty for anyone trying to evade the tax.
- The fund totals $1.776 billion created through Trump’s IRS lawsuit settlement.
- Critics say Jan. 6 rioters and Trump allies could receive millions from taxpayer-funded payouts.
- The DOJ said the fund has no partisan limit on eligibility.
California’s governor has a three-word answer to Trump’s $1.8 billion anti-weaponization fund. “We are taking it.”
“Anyone from California that receives any of those funds, we want to tax 100 percent of those proceeds,” Newsom said at a news conference. “That’s an action the State of California can take. It’s an action we look forward to taking.”
New York Joins the Fight With Its Own Bill
“It’s simple, if you’re a New Yorker and you take from this illegal slush fund, New York state will tax 100 percent of it,” New York Assemblyman Alex Bores said in a video promoting the bill. “If you storm the Capitol and you take from this slush fund, too bad, we’re taking it.”
The Federal Counter Move
Under the measure formally titled the Stop Letting United States Heads Funnel Unauthorized Nontransparent Dollars Act of 2026, recipients would be required to return the full value of any payouts through taxation. The bill also includes an additional 50 percent penalty for willful attempts to evade the tax and mandates reporting requirements to the Treasury Department.
Sen. Ron Wyden called the fund “staggeringly corrupt,” while Sen. Chuck Schumer argued taxpayers should not finance payments to “allies, cronies, and insurrectionists.”
Why This Matters and What Comes Next
Critics have noted that any number of people who participated in the January 6 Capitol attack could potentially qualify for compensation from the fund, along with Trump allies who were investigated during the Biden administration. The DOJ confirmed the fund has no partisan eligibility requirements.
Constitutional lawyers say the 100 percent state tax faces serious legal challenges, including potential violations of the Supremacy Clause. But Newsom and Bores are betting the political message is worth more than the legal risk right now.
Disclaimer: This article is for general informational and news reporting purposes only. All quotes and legislative details are sourced from Newsweek, Mediaite, NBC News, The Daily Beast, KGET, and CBS6 Albany as of May 27, 2026. The proposed California and New York tax measures had not been signed into law as of publication. TrenBuzz.com does not provide legal or tax advice. Readers are encouraged to follow credible news and official government sources for the latest updates.