The legislation (SB 122, Committee on Budget and Fiscal Review) reflects California\u2019s longstanding commitment to defending democratic institutions, supporting victims of crime, and ensuring taxpayer resources are never used to reward criminal conduct or political violence.<\/p>\n
\u201cCalifornia is drawing a clear line: there will be no windfall for anyone who has engaged in corruption or attacked our democracy. These dollars belong to the taxpayers, and we will ensure that they remain with the taxpayers,\u201d said Assemblymember Jesse Gabriel (D- Encino).\u00a0<\/p>\n
\u201cCalifornia has the authority to determine how payments are treated under our own tax laws, and this budget action reflects that responsibility. If the federal government chooses to create a special compensation fund, California isn\u2019t required to provide a state tax benefit for those payments,\u201d said\u00a0State Senator John Laird (D- Santa Cruz). \u201cThis provision ensures our tax code remains consistent with California\u2019s fiscal priorities and our responsibility to taxpayers.\u201d\u00a0<\/p>\n
Last month, Governor Newsom\u00a0proposed<\/a> the measure after the Trump Administration announced plans to establish a $1.776 billion compensation fund benefiting individuals connected to January 6. Although a federal judge temporarily blocked implementation of the fund, the U.S. Department of Justice has stated it remains confident in the program\u2019s legality<\/a>.<\/p>\n By signing today\u2019s legislation, California is ensuring that if Trump\u2019s slush fund proceeds, recipients will not receive favorable state tax treatment on those payments.<\/p>\n California stands with victims\u2014not those who attacked democracy<\/p>\n The Trump Administration has reduced or eliminated hundreds of millions of dollars in federal public safety grants supporting victims of domestic violence, sexual assault, human trafficking, gun violence, cybercrime, and other serious offenses.<\/p>\n