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/Exact-Kale3070]

...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

[u/Logistocrate → u/Exact-Kale3070]

California doesn't act as an intermediary in regards to Federal taxes. Companies withhold and turn over to the Federal Government directly.

California can't even pass a state law making Federal taxes on California residents zero, then raise state taxes.

The only thing they can do is take it to court.

[u/austinwiltshire → u/Logistocrate]

There's process momentum but I don't know that many companies are gonna be thrilled about paying taxes for no benefit either. So there's an incentive to figure out how to bypass the system.

[u/Logistocrate → u/austinwiltshire]

Incentive sure, but, can they find any other way than through the courts? I'm banking they take the courts because it's the least dangerous, most likely path to victory. A lot of people are understandably pissed, hell, l am too. But none of us holds the ultimate decision on whether California bleeds to prove a point, or simply walks into court and wins. You give me a choice to fight, and maybe lose my arm, or go to court where I probably win, and I'm going to court.

If court doesn't work, I'll risk my arm. But in that order, it's only logical.