Overview

• President Trump’s administration is reviewing potential cuts to billions of dollars in health, education and highway grants to California.
• Governor Gavin Newsom suggested the state could withhold tax payments to the federal government and has directed the Finance Department to explore options to retain funds.
• Tax policy experts warn that courts have consistently ruled against refusing to pay federal taxes, casting doubt on the legality of Newsom’s proposal.
• Republican lawmakers including Reps. Ralph Norman and August Pfluger have labeled Newsom’s threat as reckless and criticized California’s handling of immigration enforcement in Los Angeles.
• The standoff has intensified after the deployment of about 4,000 National Guard troops and 700 Marines to Los Angeles to support local law enforcement and Immigration and Customs Enforcement during protests.