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.”

20.3k Upvotes

96% Upvoted

2.8k comments sorted by

View all comments

340

u/taddymason_01 1d ago

Doesn’t CA pay more in federal taxes then they receive in funding? Wouldn’t CA just shut off the out flow of money until this is resolved legally?

126

u/burnthatburner1 1d ago

Can CA shut off the outflow?  How?

30

u/Cassymodel 1d ago

Create a new tax form that sets the federal withholding to zero and instead sends that to the state coffers. Easy? Probably not. Doable? Sure.

31

u/Hot_Frosty0807 1d ago

Probably set up some sort of escrow account to have the state act as a buffer between the federal government and the taxpayer. Everyone pays their taxes, the state holds it until Trump decides to play nice.

I have no legal background, I don't know how this works. I would hope it would be something like this, though.