Newsom to Tax Trump 'Slush Fund'

California Governor Gavin Newsom has vowed to impose a 100% state tax on payments from the Trump administration's $1.8 billion 'Anti-Weaponization Fund.' Newsom and other Democratic leaders characterize the fund as a 'slush fund' intended to reward political allies and Jan. 6 rioters under the guise of legal settlements.

The fund was established following the dismissal of a $10 billion lawsuit Trump filed against the IRS, a move that has drawn a legal challenge from a bipartisan group of former federal judges.

Treasury Secretary Scott Bessent dismissed Newsom's tax plan as 'stupid,' signaling an intensifying fiscal and legal battle between the White House and Democratic-led states.