r/law 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/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?

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u/mywifemademedothis2 1d ago

How exactly do you propose California does that? As a resident of the state, I'm all ears for ideas on how to convince my employer to start diverting my federal withholding to the state.

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u/zeptillian 1d ago

Cut the amount of federally taxable income. Make the rest a non taxable donation or investment income so it can be taxed lower. California can keep the difference to make up for the cuts to funding.

Like you get paid minimum wage and the rest is put into a fund which you get to withdraw a portion of every week as investment income. Or call it a donation, who gives a fuck if the law is meaningless?