Governor Newsom signs legislation ensuring California won't subsidize Trump's January 6 slush fund

~ SACRAMENTO - Governor Gavin Newsom has taken a strong stance against former President Donald Trump's $1.776 billion fund benefiting individuals connected to the January 6 attack on the U.S. Capitol. Today, he signed legislation imposing a 100% California tax on distributions from the fund, ensuring that California will not provide tax benefits associated with payments to individuals convicted of crimes related to the attack.

The new law, SB 122 introduced by the Committee on Budget and Fiscal Review, reflects California's commitment to defending democratic institutions, supporting victims of crime, and ensuring that taxpayer resources are never used to reward criminal conduct or political violence.

"California is drawing a clear line: there will be no windfall for anyone who has engaged in corruption or attacked our democracy," said Assemblymember Jesse Gabriel. "These dollars belong to the taxpayers, and we will ensure that they remain with the taxpayers."

State Senator John Laird added, "California has the authority to determine how payments are treated under our own tax laws, and this budget action reflects that responsibility. If the federal government chooses to create a special compensation fund, California isn't required to provide a state tax benefit for those payments. This provision ensures our tax code remains consistent with California's fiscal priorities and our responsibility to taxpayers."

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Governor Newsom proposed this measure last month after the Trump Administration announced plans for the compensation fund. Although a federal judge temporarily blocked its implementation, the U.S. Department of Justice has stated it remains confident in its legality.

By signing this legislation today, Governor Newsom is ensuring that if Trump's slush fund proceeds, recipients will not receive favorable state tax treatment on those payments.

This move by California highlights their commitment to investing in public safety and supporting victims of crime. The Trump Administration has reduced or eliminated hundreds of millions of dollars in federal public safety grants that could have supported victims of domestic violence, sexual assault, human trafficking, gun violence, cybercrime, and other serious offenses.

Instead of rewarding individuals convicted in connection with the January 6 attack, those federal resources could have been used to protect children from sexual abuse and exploitation, combat human trafficking, support survivors of domestic violence and sexual assault, hire local law enforcement officers, fight organized retail theft and cybercrime, expand community violence intervention programs, and strengthen services for crime victims nationwide.

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Governor Newsom's actions also underscore California's commitment to defending law enforcement officers who uphold their oath and protecting democratic institutions. In recent news, Governor Newsom announced major progress towards protecting salmon populations and their habitats. Since launching California's first strategy to protect salmon in 2024, nearly 50% of actions to restore aquatic ecosystems have been completed.

In another statement regarding the U.S. Supreme Court's ruling on birthright citizenship in Trump v. Barbara, Governor Newsom reaffirmed his belief that birthright citizenship is a constitutional guarantee. He stated that today's ruling preserves a promise that has been a cornerstone of American democracy for over 150 years.

Governor Newsom also signed several bills into law today including AB 182 by Assemblymember Gail Pellerin which pertains to the November 3rd statewide general election ballot measures and AB 1571 by Assemblymember Michelle Rodriguez which addresses the use of force policies for law enforcement agencies. These actions further demonstrate California's commitment to promoting public safety and upholding democratic values.

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