Fact-check analysisVerified as of July 21, 2025Curated by FactVerify
Mostly True

Gavin Newsom has suggested California "withhold" taxes from the federal government. This is at best nonsensical and at worst a serious felony.

Gavin Newsom has suggested that California could withhold federal tax payments in response to potential federal funding cuts, which legal experts and officials warn would be illegal and could constitute tax evasion.

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Source: factverify.com

At a glance

Key Evidence

Verified July 21, 2025
The reporting

What the Evidence Shows

The claim consists of two parts: first, that Gavin Newsom suggested California might withhold taxes from the federal government, and second, that such an action would be nonsensical or a serious felony. Multiple credible news sources confirm that Newsom floated the idea of withholding California's share of federal taxes amid reports that the Trump administration was considering large-scale funding cuts to the state.politico.compolitico.comNewsom floats withholding federal taxes as Trump threatens Californiacbsnews.comcbsnews.comCalifornia Gov. Gavin Newsom is floating a federal tax boycott. Here's what to...

This suggestion was widely reported as a political response to federal threats. However, legal experts and officials, including Treasury Secretary Scott Bessent, have condemned this proposal as illegal tax evasion and warned it could be a criminal offense.foxbusiness.comfoxbusiness.comBessent condemns Newsom's 'dangerous' threat to withhold $80B in federal taxes...theguardian.comtheguardian.comNewsom is warned of ‘criminal tax evasion’ if he withholds federal taxes The U.S. Constitution and federal law require states to remit collected federal taxes; states do not have the authority to withhold these payments unilaterally.

Thus, while Newsom did suggest withholding taxes, the characterization of this as nonsensical and potentially a serious felony aligns with expert legal opinion. The nuance is that Newsom's statement appears more rhetorical or political rather than a concrete policy plan, but the legal risks are real if such withholding were attempted.

Therefore, the claim is mostly true: Newsom did suggest withholding taxes, and experts warn it would be illegal and potentially criminal.

Primary trail

Verified Sources5

Bessent condemns Newsom's 'dangerous' threat to withhold $80B in federal taxes...

foxbusiness.com
Open source

Newsom is warned of ‘criminal tax evasion’ if he withholds federal taxes

theguardian.com
Open source

Newsom floats withholding federal taxes as Trump threatens California

politico.com
Open source
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