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California Targets Trump Fund With Full Tax

California, USAThursday, May 28, 2026

California officials are poised to impose a 100 % tax on every dollar from the former president’s $1.8 billion relief fund, earmarked for alleged political violence victims.

Governor’s Stance
“Anyone in California who receives any part of this money will have to pay the full amount back as tax.”

The fund, created following a settlement with the IRS, has been labeled a “slush fund” by officials. While they hinted at an upcoming tax policy, no start date has been announced.

Political Context
The move follows President Trump’s pardon of over 1,500 individuals involved in last year’s Capitol riot. Those pardoned now seek compensation for lost jobs and time behind bars, claiming unfair treatment by the current administration’s justice system.

Two police officers who defended the Capitol have already filed a lawsuit against California’s tax plan, arguing it would effectively pay former rioters.

Legislative Concerns
Some lawmakers question whether the settlement should block future IRS audits of Trump and his family, adding that paying for those who admit guilt feels unjust.

Overall, this decision underscores escalating tensions over how political events are funded and who ultimately bears the cost.

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