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Trump Weighs Broad Federal Funding Cuts for California as Newsom Threatens Tax Boycott

State officials are preparing lawsuits to block any cancellation of federal grants

Overview

  • Multiple federal agencies have been instructed to identify grants to withhold from California, with university research funding seen as a prime target
  • White House spokesman Kush Desai said no final decisions on funding cuts have been made and labeled reports of imminent action as speculation
  • Governor Gavin Newsom responded by suggesting California could withhold more than $80 billion in annual federal tax payments
  • State Senator Scott Wiener and members of California’s congressional delegation have announced plans to mount court challenges against any funding reductions
  • California’s higher education, healthcare services and K-12 schools depend heavily on federal grants, leaving key programs vulnerable if funds are cut