Treasury Secretary Bessent warns Gov. Newsom that withholding federal tax payments over Trump's proposed transgender athlete fines would constitute tax evasion.

Gov. Gavin Newsom on Friday suggested California consider withholding tens of billions in annual federal tax dollars amid reports Donald Trump is preparing funding cuts targeting the state. Newsom’s suggestion came after CNN reported the president was considering a “full termination” of federal grant funding for California’s universities.

Gov. Gavin Newsom wasn't playing nice late Friday when he fired back at President Donald Trump's threats of taking away federal funding for California. CNN first reported that the Trump administration plans on pulling back large chunks of federal spending in California,