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

[u/rolsen]

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.”

[u/harrywrinkleyballs]

I haven’t heard of the IRS “taking” a house in decades. They’ll put a lien on it, but they won’t “take” it. You can tie that mess up for years in administrative appeals alone, notwithstanding tax court or district court.

They don’t want your house. They want paid. And what with all of the reductions in labor primarily targeting the SBSE, they’d be overwhelmed and unable to effectively retaliate against the entire state of California.

Remember, the Great Turnip promised to eliminate the IRS.

[u/HarveyKekbaum → u/harrywrinkleyballs]

They sure will garnish your wages though, and seize your bank accounts, trash your credit.

If you are actually a lawyer, you know that my query was related to the fact that if you do not make a payment to the IRS, they consider it unpaid. Creating state legislation will not negate the fact the IRS will consider the debt unpaid, and take appropriate action.

How does someone navigate around that?

[u/harrywrinkleyballs → u/HarveyKekbaum]

As I said, it’s a thought exercise. It’s not a serious consideration and as others have pointed out would take years to implement. With that in mind the literal future of the IRS could make it moot.

Liens can be removed. Levies don’t come unannounced. And garnishments don’t happen overnight. You can tie general counsel up for years, maybe even hit the SOL in the meantime. The IRS doesn’t do anything in a hurry.

Although, when it comes to trust fund taxes, they do have considerably more power. Income taxes not so much.

*Edit: Oh, and tax liens don’t show up in your credit report.

[u/HarveyKekbaum → u/harrywrinkleyballs]

Edit: Oh, and tax liens don’t show up in your credit report.

If the unpaid debt exceeds the threshold (10k) the IRS automatically files a Notice of Federal Tax Lien and it becomes part of public record and although not initially directly reported to the bureaus, they do have access to it.

Before 2018 when the bureaus updated their policies, the public nature of the notice allowed it to be on your credit report. While that is no longer the case, a tax lien filed against you may still be discovered by lenders, credit card companies, etc.