Newsom approves 100% California tax on Trump’s $2B fund

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California Governor Gavin Newsom has approved a 100% state tax on any funds received by California residents from President Trump’s $1.8 billion fund. The fund, criticized as a “slush fund,” was part of a settlement related to Trump’s lawsuit against the IRS over leaked tax data. This move by Newsom aligns with California’s broader wealth taxation initiatives, which have been a focal point of political debate in the state. Newsom’s decision requires legislative backing from the Democratic-led legislature and is expected to face legal challenges if implemented.

Key Takeaways

• Newsom’s approval appears to be consistent with support for wealth taxation policies in California.
• The 100% tax measure is likely to influence discussions around the billionaire wealth tax initiative.
• This development may indicate increased likelihood of wealth tax measures passing in upcoming elections.

What to Watch

Observers will closely monitor the California legislature’s response to Newsom’s tax proposal and any legal challenges that may arise. The decision could impact the November 3, 2026, ballot initiative on a billionaire wealth tax, which currently has a 33.5% YES probability. Developments in public opinion and endorsements from key political figures could further influence pricing on this issue.

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