Treasury Secretary Scott Bessent offered a sharp critique of California Governor Gavin Newsom’s recent proposal to impose a 100% tax on state residents who receive funds from President Donald Trump’s Anti-Weaponization Fund. Bessent’s response came during a press briefing where he dismissed the plan with a blunt remark, “There’s no cure for stupid,” before leaving the podium.
Newsom’s Tax Proposal
Governor Newsom announced the tax plan in response to the creation of the Anti-Weaponization Fund, which was established as part of a settlement agreement in a lawsuit involving the Trump family’s tax records. The fund, amounting to $1.776 billion, aims to compensate individuals or entities who claim they were targeted for political, personal, or ideological reasons by government actors.
Newsom’s office has criticized the fund, labeling it a “slush fund” and expressing concerns that it might benefit individuals connected to the January 6 protests. Newsom argued that the fund effectively rewards those who were pardoned by Trump, stating, “He pardoned all of those folks that were beating up cops and absolved them, providing them 1.776 billion dollars. So not only do you get a pardon, you get rewarded.”
California’s Financial Context
The proposal to tax the federal fund’s recipients comes as California faces ongoing budget challenges. The state’s recent budget revision addressed a projected $2.9 billion shortfall for the fiscal year 2026-2027, with further deficits anticipated. Newsom’s administration has faced criticism over public works spending, notably the high-speed rail project, which has seen significant expenditure without tangible progress.
In addition, Newsom allocated $25 million in 2025 for legal challenges against the Trump administration, a move that drew criticism from California Republican Senate Minority Leader Brian Jones, who referred to it as a “slush fund.”
The clash over the tax proposal adds to the ongoing tensions between the Trump administration and California, highlighting the broader national debate over state versus federal authority and fiscal responsibility.
Original reporting: The Dallas Express — read the source article.
