Overview

• Federal agencies have been directed to identify grants to withhold from California, with the process set to begin immediately.
• Sources indicate research and operating grants for the University of California and California State University systems are top targets for termination.
• The funding review follows prolonged disputes over California’s energy regulations, immigration policies and rules on transgender athletes in school sports.
• Governor Newsom highlighted that California contributes over $80 billion more in federal taxes than it receives and warned of a tax withholding response.
• State lawmakers and university leaders, including Sen. Scott Wiener, have pledged to challenge any funding cuts in court.