California Gov. Gavin Newsom (D) suggested on social media that the state should consider cutting off its tax payments to Washington, sharpening his long-running feud with President Donald Trump and tying it directly to the economic fallout from the Iran war.
Newsom Revives Donor State Argument
In a post on X, the Democratic governor wrote, “Trump trashes California. California pays his war bills. Perhaps it’s time we look into cutting you off, @realDonaldTrump???”
Newsom’s swipe came as California officials renewed their argument that the state is the nation’s largest “donor state,” meaning it sends far more to the federal government than it gets back.
In a Tax Day statement released Wednesday, the governor’s office said California paid about $275 billion more in federal taxes than it received in fiscal 2024. Earlier California-based analyses using 2022-era data had put the gap much lower, at roughly $83 billion, but still among the biggest in the country.
Funding Feud Drives Newsom’s Taunt
The threat to “cut off” Washington is rhetorical, but it reflects a real fight over federal money. California has filed a series of lawsuits against the Trump administration over funding cuts and freezes that state officials say are politically motivated and unlawful, including litigation over more than $600 million in public health grants, $1.2 billion tied to energy and infrastructure programs, and a broader $10 billion freeze involving child care and family assistance funds.
Newsom has also argued that Trump’s handling of Iran is “a war of his own making” that has pushed up energy costs for Americans. That message carries particular force in California, where drivers are paying the highest gasoline prices in the country. AAA’s latest data shows California’s average regular-gas price above $5.86 a gallon.
California Still Relies On Federal Dollars
At the same time, California depends heavily on federal funds. The enacted 2025-26 state budget includes nearly $175 billion in federal funding, about 35.2% of total spending, with much of that money flowing to health and human services, especially Medi-Cal, which covers roughly 15 million low-income residents.
Photo Courtesy: Sheila Fitzgerald on Shutterstock.com
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