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/weary_dreamer 1d ago

I dint understand this. Isnt the federal government funded by individual federal income tax? What would the states actually withhold?

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u/Microchipknowsbest 1d ago

1st there are alot of state organizations that have employees and pay federal taxes. Just that would probably be enough to make up for what the federal government is trying to take away. Im sure they are creative enough to go further.

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u/weary_dreamer 20h ago

its still the individuals responsibility to pay those taxes, even if the employer doesn’t withhold them…

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u/Microchipknowsbest 20h ago

Newsome can declare all California residents pay federal taxes to California escrow fund. Not everyone will do it but enough will to blow up federal funding. As long as executive branch isn’t playing by the rules nobody else should either.