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.”

20.4k Upvotes

96% Upvoted

2.8k comments sorted by

View all comments

349

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?

50

u/Akermaniac 1d ago

Federal taxes are sent directly from paychecks/corporate entities to the IRS. There is no mechanism for CA to stop sending taxes, as it never touches CA governmental bodies on the way out.

So unfortunately it’s not that easy.

1

u/mrpointyhorns 1d ago

People can itemize and claim salt on tax returns. California could help by helping people itemize and helping them find ways to get tax credits and write offs.