The Trump administration is gearing up to eliminate substantial federal funding for California, with actions potentially beginning Friday, according to a report by CNN.

Federal agencies have received directives to identify grants that could be withheld from the state. The administration is particularly eyeing complete termination of federal grant money for the University of California and California State University systems.

Californians pay the bills for the federal government.

We pay over $80 BILLION more in taxes than we get back.

Maybe it’s time to cut that off, @realDonaldTrump. pic.twitter.com/lwFHFSgSyJ

— Gavin Newsom (@GavinNewsom) June 6, 2025

“No taxpayer should be forced to fund the demise of our country,” White House spokesman Kush Desai stated Friday, taking aim at California’s energy and immigration policies while noting no final decisions have been made.

Gov. Gavin Newsom fired back on X, writing: “Californians pay the bills for the federal government. We pay over $80 BILLION more in taxes than we get back. Maybe it’s time to cut that off, @realDonaldTrump”

Sources indicate the administration is targeting California universities over alleged antisemitism on campus, despite efforts by schools to address these concerns. The UC system ranks as California’s third-largest employer, with both university systems serving as critical research hubs in biotechnology and medicine.

Escalating Political Tensions

President Donald Trump has consistently targeted the Democratic-led state, previously threatening funding cuts over transgender athlete participation and criticizing the state’s wildfire response. His ongoing feud with Newsom has intensified these tensions.

California Democrats are preparing to resist. “Trump is a bully,” said Rep. Zoe Lofgren. “I will fight back on this. This will be immediately challenged in court.”

The state Legislature allocated $25 million to combat Trump administration policies, having spent roughly $5 million thus far.

Read more at CNN.