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.<\/p>\n
Newsom Revives Donor State Argument<\/p>\n
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???”<\/p>\n
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.<\/p>\n
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.<\/p>\n
Funding Feud Drives Newsom’s TauntCalifornia Still Relies On Federal Dollars<\/p>\n
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.<\/p>\n
Photo Courtesy: Sheila Fitzgerald on Shutterstock.com<\/p>\n