Newsom Warned of Tax Evasion Risks Amid Federal Funding Threats

California Governor Gavin Newsom threatened to withhold state taxes in response to potential federal funding cuts by the Trump administration, prompting warnings from US Treasury Secretary Scott Bessent that such actions could constitute criminal tax evasion. The dispute stems from reports that federal funds for California could be reduced, including for universities, amid political tensions. California officials have vowed to defend their state's interests, considering legal options to counteract what they see as unconstitutional and vindictive actions by the federal government.