State’s governor looks to thwart US president’s plan to divert money to allies, including January 6 rioters
California governor Gavin Newsom is looking to thwart Donald Trump’s $1.776bn “anti-weaponization fund” by imposing a 100% tax on any payout received by state residents.
In May, the Department of Justice (DoJ) announced a fund to compensate alleged “victims of lawfare and weaponization”. It’s unclear who qualifies under this category.
The fund was the product of a settlement reached between Trump and the Internal Revenue Service (IRS) – the agency the president sued over his leaked tax returns.
Critics, including Newsom, have slammed the fund as a “boondoggle” designed to divert money to Trump’s allies. Speculation has swirled that its benefactors could include the individuals who were arrested in the 6 January 2021 siege of the US Capitol. The Trump administration has described the rioters as patriots and since pardoned many who were charged in relation to the attack.



I think you’d need to make the argument that a slush fund payout is directly profiting from your crime but you’d have to argue that
States have the right to levy taxes. This is a special income tax, not a fine. The state isn’t suing anyone, they are just defining a form of income having a certain tax rate.