Treasury Secretary ended Thursday’s White House press briefing with a pointed response to a question about California Governor and his proposal to heavily tax recipients of President’s Anti-Weaponization Fund.
Asked for his reaction to Newsom’s plan, Bessent offered a brief but memorable answer before leaving the podium.
“There’s no cure for stupid,” the treasury secretary said.
The remark came after Newsom announced Wednesday that California was exploring a 100 percent state tax on funds distributed to Californians through the Anti-Weaponization Fund, a program established as part of a settlement involving Trump and the Internal Revenue Service.
“Anyone from California that receives any of those funds, we wanna tax 100 percent of those proceeds,” Newsom said. “And that’s an action the state of California can take. It’s an action we look forward to taking.”
The proposal immediately intensified an already heated debate surrounding the fund, which has become a flashpoint in the broader political battle over claims of government overreach, lawfare, and the role of taxpayer money.
Earlier this month, the Department of Justice announced the creation of the fund as part of a settlement tied to Trump’s lawsuit over the leak of his tax returns. According to the arrangement, Trump agreed to drop a $10 billion lawsuit connected to the disclosures.
The dispute traces back to Trump’s legal efforts regarding the release of his tax information. In January, he sued his own administration for damages stemming from those leaked returns.
The resulting Anti-Weaponization Fund totals approximately $1.776 billion. According to its stated purpose, the fund is intended to compensate individuals who claim they were targeted by Biden Justice Department and Democratic officials as victims of what supporters describe as political weaponization and lawfare.
Supporters of the initiative view it as a means of addressing alleged abuses of government power. Critics, however, have sharply challenged the program, arguing that it functions as a taxpayer-backed fund aimed primarily at Trump’s political allies.
Some critics have also pointed out that individuals connected to the Jan. 6 Capitol riot could potentially qualify for compensation. After returning to office for his second term, Trump pardoned nearly all Jan. 6 defendants—roughly 1,500 people—and commuted the sentences of eight others.
Those developments have fueled ongoing political disputes over both the fund’s purpose and its potential recipients.
The issue surfaced again Thursday during Bessent’s briefing when a reporter raised Newsom’s proposed tax directly.
“Governor Gavin Newsom has floated this idea of a 100 percent state tax on Californians who receive money from President Trump’s anti-weaponization fund,” the reporter said. “Your response to the governor’s call?”
Bessent did not elaborate on the policy details or engage in a lengthy discussion. Instead, he delivered his one-line criticism of the California governor before exiting the stage.
The exchange underscored the widening divide between the Trump administration and California’s Democratic leadership as disputes over taxation, government accountability, and compensation for alleged political targeting continue to play out on the national stage. With billions of dollars and competing claims of justice at stake, the controversy surrounding the Anti-Weaponization Fund appears unlikely to fade anytime soon.
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