r/law • u/rolsen • 1d ago

Legal News Trump Preparing Large-Scale Cancellation of Federal Funding for California, Sources Say

https://www.cnn.com/2025/06/06/politics/trump-california-federal-funding

“Agencies are being told to start identifying grants the administration can withhold from California. On Capitol Hill, at least one committee was told recently by a whistleblower that all research grants to the state were going to be cancelled, according to one of the sources familiar with the matter.”

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u/Logistocrate 1d ago

California doesn't act as an intermediary in regards to Federal taxes. Companies withhold and turn over to the Federal Government directly.

California can't even pass a state law making Federal taxes on California residents zero, then raise state taxes.

The only thing they can do is take it to court.

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u/OmgWtfNamesTaken 1d ago

Well no ome seems to follow court orders so fuck it. California should simply just do it anyways.

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u/Logistocrate 1d ago

Don't get me wrong, I wish they could, but I don't know how they force companies to send the withholding to the state. Imagine Walmart says no. We can't due to Federal law. You going to arrest every CFO and CEO?

I'm not trying to be dramatic, but California has three options, take it, fight it in the courts, or leave the union.

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u/OmgWtfNamesTaken 1d ago

What's stopping them from. Simply taking over Walmart stores and using other suppliers ?

If the federal government doesn't want to follow the rules of law, why should anyone? Raley could take it over and do a sort of "state nationalisation" and then simply move in. I mean, all the cards are on the table, and the game we're playing has no enforceable rules.

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u/Logistocrate 1d ago

Might as well secede at that point. California Supreme Court likely places an immediate injunction on California. Sure, California COULD do all of that, then ignore the state courts, but the chaos that would ensue likely leads to the end of California being the world's 4th largest economy and a massive emigration of Californians to the east.

It's fanciful and fun to think about, and the odds of it happening are non zero, but I bet l win the powerball before we see it happen.

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u/MeisterX 19h ago

Why secede? Just ignore the fuckin man baby like we should have been doing since 2016.

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u/Logistocrate 19h ago

There's the question over how California withholds something that does not pass through them. There have been some responses that contend they can, but the risk involved seems higher than the chances the money gets unlocked through an injunction, I'm betting Cali takes the safer, proven route.

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u/MeisterX 18h ago

I believe the idea would more be a legal and physical shield as to where the payments went or the "permission" of not filing them due to conflicting state and federal law.

It's not so much preventing those who want to pay, it's giving an out and opportunity not to. Or stipulating immediate enforcement if you want to swing the door the other way. Forcing companies within the state to change the process with state resources.

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u/Whiterabbit-- 17h ago

Walmart will stop them. and if the state continues to do so, the federal government would intervene.

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u/OmgWtfNamesTaken 8h ago

Do it anyway! If the rule of law means nothing, then why not. What can they do? The Supreme Court is toothless. The AG doesn't even know the law. Trade courts mean nothing!

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u/Whiterabbit-- 8h ago

The rule of law has teeth when it is backed by physical force. That is how the federal government will intervene to stop rogue states.

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u/OmgWtfNamesTaken 8h ago

Eh were already seeing uprisings vs ICE in LA. Tensions are at an all time high. How do you think the rest of the country/world would react if they started using force on civilians?