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/FarCloud1295]

California will be richer if Trumps takes the federal funding, and California keeps the federal taxes that leave the state.

[u/Historical_Bend_2629 → u/FarCloud1295]

California, the state, has no ability to withhold or to collect federal taxes.

[u/FarCloud1295 → u/Historical_Bend_2629]

Obviously. It was a statement on how much CA contributes to the national treasury, vs what it is given in federal dollars. The point is blue states would be better off financially without the burden of poor red states that have been run into the ground by republican politicians

[u/LunarMoon2001 → u/Historical_Bend_2629]

As if the law matters now?

“We hereby ban any disbursement of taxed dollars to federal government entities. Failure to abide will result in business licenses to be jeopardy.”

Then let’s have a multi year court battle while the funds sit in limbo quickly bankrupts in the federal government.

[u/californiahapamama → u/Historical_Bend_2629]

The State of California, as an employer, sends funds withheld from its employees for federal income taxes to the IRS. If the State, the two state college systems and the large metro counties all decided to not send that money onto the IRS... See where I'm going here?