'We don't fund criminals': Gavin Newsom imposes 100% tax on Trump Jan. 6 clemency funds

SACRAMENTO, CALIFORNIA: California Gov. Gavin Newsom has signed a new law imposing a 100% state tax on any Californians who receive financial benefits tied to President Donald Trump's Jan. 6 clemency fund, saying taxpayer money should support victims of the Capitol riot rather than those involved in it.

The law targets Trump's Anti-Weaponization Fund, a $1.78 billion fund established by the Justice Department as part of a lawsuit settlement between Trump and the IRS.

Gavin Newsom targets Trump's $1.78 billion Anti-Weaponization Fund

"I just signed a new law imposing a 100% state tax on any Californians who benefit from Donald Trump's Jan. 6th slush fund for insurrectionists," Newsom wrote on X.

"Taxpayer dollars should support victims, not the people who attacked law enforcement officers and our very democracy. We don't fund criminals."

The fund would pay settlements to people who claim they were victimized by the federal government, a category proponents of the measure say could include Jan. 6 defendants who were pardoned or had their sentences commuted by Trump on his first day back in office.

On January 20, 2025, Trump pardoned or commuted the sentences of more than 1,500 people convicted or charged in connection with the Capitol riot. Newsom said the fund was an extension of that clemency.

Newsom first announced his intention to pursue the 100% tax in a May news conference, saying it was an action California "looks forward to taking."

The signing of the law follows through on that pledge, setting California apart as the first state to formally enact such a measure.

Gavin Newsom calls for defending democracy

The new law imposes a 100% California tax on distributions from the fund, ensuring California will not provide tax benefits associated with payments to individuals convicted of crimes related to the attack. 

He also said, “Donald Trump wants taxpayers to reward people who assaulted police officers and tried to overturn an American election.” “California rejects politics of grievance, extremism, and violence.”

“We believe democracy is worth defending, the rule of law matters, and public dollars should support victims, not those who attacked the very institutions that protect our freedoms. California will continue to be a beacon for those values, even when others abandon them.”

US District Judge Leonie Brinkema initially blocked the fund in May to prevent taxpayer money from being distributed before the court could review the case.

Acting Attorney General Todd Blanche later told lawmakers the Department of Justice was no longer moving forward with the fund but declined to submit a written declaration stating it had been formally rescinded. Brinkema subsequently extended the injunction indefinitely.

According to the Trump administration, the fund would compensate people harmed by politically motivated investigations or prosecutions, potentially including individuals charged or convicted in connection with the Jan. 6 Capitol riot.

Newsom is widely viewed as a potential 2028 presidential contender. The signing of the law comes as he has continued to position California as a leading counterweight to the Trump administration on several policy fronts.