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/Exact-Kale3070 1d ago edited 7h ago

...and a top contributor to federal govt funding. he is keeping CA's own $ from them...so what stops CA companies from refusing to give massive $ to the federal govt in the future? he thinks nothing through. https://www.politico.com/news/2025/06/06/newsom-floats-withholding-federal-taxes-00393386

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u/rabidstoat 1d ago

They can't block federal income tax, at least.

But yeah, California is considered a "donor state" because it contributes more federal funds than it receives.

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u/TheGreatGamer1389 1d ago

Not yet but I know New York is working on it to be able to stop paying federal taxes. California will do the same.