Governor Gavin Newsom today signed legislation imposing a 100% California tax on distributions from Donald Trump's $1.776 billion fund, which was created to benefit individuals connected to the January 6 attack on the U.S. Capitol. This new law ensures California will not provide state tax benefits for payments made to those convicted of crimes related to the attack.
"Donald Trump wants taxpayers to reward people who assaulted police officers and tried to overturn an American election," Governor Newsom said. "California rejects politics of grievance, extremism, and violence. We believe democracy is worth defending, the rule of law matters, and public dollars should support victims—not those who attacked the very institutions that protect our freedoms."
The legislation, SB 122, reflects California's commitment to democratic institutions and supporting crime victims. Assemblymember Jesse Gabriel said, "California is drawing a clear line: there will be no windfall for anyone who has engaged in corruption or attacked our democracy." State Senator John Laird added that California has the authority to determine how payments are treated under its own tax laws, ensuring consistency with the state's fiscal priorities.
Newsom proposed the measure last month after the Trump Administration announced plans for the compensation fund. Although a federal judge temporarily blocked its implementation, the U.S. Department of Justice remains confident in the program's legality. By signing SB 122, California ensures that if the fund proceeds, recipients will not receive favorable state tax treatment on those payments.
California emphasizes its support for victims, noting that federal public safety grants for victims of various crimes have been reduced or eliminated by the Trump Administration. The state's new law reinforces its dedication to public safety, victim support, and protecting democratic institutions.