Politics
NEW: Bessent Lays Down The Law On Gavin Newsom, Warns Of Criminal Charges
U.S. Treasury Secretary Scott Bessent warned California Governor Gavin Newsom that he could face criminal charges if he follows through with threats to block California tax payments to the federal government.
Newsom’s threats were made in response to President Trump’s suggestion that federal funds could be withheld from California due to the state government’s numerous challenges to, and defiance of, federal policy.
The Golden State is currently facing a large budget deficit for the second year in a row, with the state’s Medicaid program borrowing money to stay afloat. To that end, Newsom has asked the federal government for roughly $40 billion in fire relief funds.
At the same time, Newsom’s government has launched several lawsuits against the Trump Administration over a number of its policies, including immigration enforcement and transgenderism, among other things. The state is seeking sweeping injunctions that would block several Trump Administration policies not just in California, but nationwide.
Trump had previously threatened to withhold federal sports funding after the state defied a federal transgender policy that bars biological males from competing in girls’ sports. More recently, the Transportation Department suggested it could claw back billions of dollars in federal spending wasted on the state’s troubled high-speed rail project.
“Californians pay the bills for the federal government,” Newsom wrote in an X post Friday. “We pay over $80 BILLION more in taxes than we get back. Maybe it’s time to cut that off,” the governor continued before tagging President Trump in the post.
The constitutional basis for Newsom to withhold funds from the federal government is unclear, if it exists at all. On the other hand, the federal government’s ability to withhold funding from states is much more clearly defined.
On Sunday, Treasury Secretary Scott Bessent took to X in order to warn Newsom that his threats are not feasible and could potentially result in criminal charges.
“Governor [Gavin Newson] is threatening to commit criminal tax evasion,” Bessent posted. “His plan: defraud the American taxpayer and leave California residents on the hook for unpaid federal taxes.”
Bessent then addressed California business, stating that they are well aware that “failing to pay taxes owed to the Treasury constitutes tax evasion.” He went on to express confidence that they “have no intention of following the dangerous path Governor [Gavin Newsom” is threatening.”
“I would warn state officials, including payroll managers, that federal law attaches personal liability to an ‘attempt to evade or defeat tax,'” Bessent said, adding that the governor’s comments are “extremely reckless.”
“Instead of committing criminal tax evasion, Governor Newsom should consider a tax plan for California that follows the Trump Tax Cuts model and reduces the onerous state tax burden to allow families to keep more of their hard-earned money,” the treasury secretary concluded.
Bessent’s comments come just hours after White House border czar Tom Homan warned that Newsom and Los Angeles Mayor Karen Bass could face criminal investigations if they actively impede federal immigration operations in California.
“If he cared about public safety in the state of California, he would not have a sanctuary for criminals, where criminals get released to the street in this state every day because of his policy,” Homan said of Newsom.
