Gov. Gavin Newsom fired back at President Trump’s threat to cut federal funding to California by highlighting the state’s significant financial contributions to Washington.

“We pay over $80 BILLION more in taxes than we get back,” Newsom posted on X Friday, adding, “Maybe it’s time to cut that off.”

Neither threat appears viable. Federal judges have already blocked Trump’s attempts to halt congressionally allocated funds, and California lacks authority to prevent residents from paying federal taxes. A White House spokesperson said, “No decision has been made at this time.”

Money Flows Highlight California’s Role

“The administration has been trying to portray this as a one-way street,” says H.D. Palmer from California’s Department of Finance. The state consistently ranks among top “donor states,” contributing far more than it receives back.

According to the Rockefeller Institute of Government, California’s excess contribution reached $126.5 billion in fiscal 2022 (excluding COVID aid). The state receives only 82 cents for every dollar sent to Washington.

Despite this imbalance, California depends on federal funding for critical programs: $101 billion for Medicaid, $20 billion for substance abuse and mental health services, and $1.8 billion for school lunches serving 1.5 million children.

California’s donor status stems from its wealthy economy and relatively low poverty rate compared to recipient states, predominantly in the Republican-led Southeast.

Read more at Los Angeles Times