Governor Newsom signs legislation ensuring California won’t subsidize Trump’s January 6 slush fund

The legislation (SB 122, Committee on Budget and Fiscal Review) reflects California’s longstanding commitment to defending democratic institutions, supporting victims of crime, and ensuring taxpayer resources are never used to reward criminal conduct or political violence.

“California is drawing a clear line: there will be no windfall for anyone who has engaged in corruption or attacked our democracy. These dollars belong to the taxpayers, and we will ensure that they remain with the taxpayers,” said Assemblymember Jesse Gabriel (D- Encino). 

“California has the authority to determine how payments are treated under our own tax laws, and this budget action reflects that responsibility. If the federal government chooses to create a special compensation fund, California isn’t required to provide a state tax benefit for those payments,” said State Senator John Laird (D- Santa Cruz). “This provision ensures our tax code remains consistent with California’s fiscal priorities and our responsibility to taxpayers.” 

Last month, Governor Newsom proposed the measure after the Trump Administration announced plans to establish a $1.776 billion compensation fund benefiting individuals connected to January 6. Although a federal judge temporarily blocked implementation of the fund, the U.S. Department of Justice has stated it remains confident in the program’s legality.

By signing today’s legislation, California is ensuring that if Trump’s slush fund proceeds, recipients will not receive favorable state tax treatment on those payments.

The Trump Administration has reduced or eliminated hundreds of millions of dollars in federal public safety grants supporting victims of domestic violence, sexual assault, human trafficking, gun violence, cybercrime, and other serious offenses.

Rather than rewarding individuals convicted in connection with the January 6 attack, those federal resources could instead support:

• Protecting children from sexual abuse and exploitation.
• Combating human trafficking.
• Supporting survivors of domestic violence and sexual assault.
• Hiring local police officers, investigators, and prosecutors.
• Fighting organized retail theft and cybercrime.
• Expanding community violence intervention programs.
• Strengthening services for crime victims nationwide.

California’s new law underscores the state’s commitment to investing in public safety, supporting victims, defending law enforcement officers who uphold their oath, and protecting democratic institutions.