[By Guancha Observer Network, Ruan Jiaqi]

The ongoing feud between California Governor Gavin Newsom and his "arch-nemesis" Donald Trump has been updated.

According to reports by CNN, Politico, and others on June 6, rumors have surfaced that U.S. President Trump plans to begin significantly cutting federal funds allocated to California as early as Friday. In response, Newsom directly retorted, stating that California will consider withholding hundreds of billions in federal tax revenue as a countermeasure.

On Friday afternoon, Newsom posted on social media, "Californians are paying for the federal government. We pay over $80 billion more in taxes than we receive in federal funding. Perhaps it's time to cut this funding."

The statement released by Newsom's office also pointed out that California is the largest "donor state," with tax contributions three times higher than those of the second-largest donor state. According to World Bank calculations, California accounts for more than 14% of America's $28 trillion GDP, surpassing Texas, the second-largest economy, by over 50%.

The statement cited Paul Krugman, winner of the 2008 Nobel Prize in Economics, emphasizing that "California is an economic and technological powerhouse, effectively subsidizing other parts of the United States through the federal budget, especially red states. Without California, the U.S. would be poorer and weaker."

Newsom later released a video to give Trump "a simple economics lesson."

In the video, he said, "We're helping to pay the federal bills. So if Trump continues to threaten the 40 million Americans living in California, maybe we should consider withholding these funds."

Regarding Newsom's remarks, White House spokesperson Kush Desai strongly criticized, stating that California is implementing "insane anti-energy, pro-crime-enabling, child-harming, and sanctuary-supporting policies."

In the statement, Desai stated, "The Trump administration is committed to ending this nightmare and restoring the California dream." Regarding the rumored cuts to California's funding, he said, "The administration has not made any final decisions on any future potential actions, and any other claims are mere speculation."

Newsom Threatens to Teach Trump Basic Economics

Politico reported that Trump had previously used federal funds as leverage to pressure California into adopting his political agenda. Last month, Trump threatened to cut off federal funding to California if the state allowed a transgender athlete to violate his executive order and compete in women's track events.

"It could even be a permanent freeze," Trump warned on Truth Social at the time.

According to CNN, the Trump administration subsequently cut $126.4 million in funding for four flood control projects in California.

This week, sources revealed that the Trump administration was also considering cutting all federal funding to the University of California and California State University systems on the grounds of "anti-Semitism" existing within schools. These two systems, along with California community colleges, are expected to receive $7.3 billion in federal funding for the 2025-26 academic year.

On Friday afternoon, H.D. Palmer, a spokesperson for the California Treasury, told KCRA 3 local television that the Newsom administration has yet to specify details about the large-scale funding cuts. "So far, Washington has provided no specific numbers, tables, or any substantive content that can be analyzed in detail," Palmer said in an interview.

When asked whether California could actually withhold federal tax payments as Newsom suggested, Palmer replied, "The governor wants to make one point clear: this is not a one-way transaction."

"Given California's strength and technology-driven economy, we make a significant contribution to federal and national finances," he said. "I believe what the governor means is that if the president insists on cutting funding, we need to seriously discuss California's contributions to the national economy and the proportion of Californians' tax contributions to the national budget."

KCRA 3 further inquired whether this latest dispute would lead to another legal battle between California and the Trump administration. California had previously sued the Trump administration over tariff policies.

"I think this is just another round in the long-standing博弈 since the beginning of the year," Palmer said. "Governor, elected officials, the attorney general, and others have clearly stated that if California faces threats, we will not abandon our values and will respond firmly."

This article is an exclusive piece from the Guancha Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7513119430319309324/

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