As Democrats plot ways to block the Trump administration’s controversial plan for a $1.8 billion “anti-weaponization” fund, some have embraced one option: tax it all.
Democrats in Congress last week introduced legislation that would impose a 100% tax on payments from the fund, which they call a “slush fund” that would direct taxpayer money to Trump allies, including rioters who attacked the Capitol on January 6, 2021.
“Congress must do whatever it takes to prevent Donald Trump from stealing $1.8 billion from the American people to fund right-wing violence and handouts to insurrectionists,” Sen. Ron Wyden said in a statement. “This money doesn’t belong to Donald Trump, it belongs to the taxpayer.”
Democratic Rep. Mike Thompson of California first introduced the bill, titled the “Stop Letting United States Heads Funnel Unauthorized Nontransparent Dollars Act of 2026” (SLUSH FUND Act). The measure would also impose a 50% penalty on any willful attempt to evade the tax.
California Democratic Gov. Gavin Newsom on Wednesday embraced the tax idea, suggesting he could pursue it at the state level.
“One thing that I think we're going to try to do, with your support, is tax 100% anyone from California that receives any of those funds," Newsom said during a news conference. "And that's an action the state of California can take. It's an action we look forward to taking.”
Newsom’s announcement follows a similar one from Alex Bores, a state lawmaker in New York who is running for Congress, who this week introduced what he calls “the Anti-Insurrectionist Act,” legislation that would impose a 100% state tax on payouts from the Trump settlement fund. “If you storm the Capitol and you take from this slush fund, too bad, we’re taking it,” Bores said. New Jersey lawmakers are reportedly also drafting legislation to tax fund payouts.
Some Republicans have raised concerns about the fund as well. The backlash to the plan forced Senate Republican leaders to cancel a planned vote last week on a $70-plus billion funding package for immigration enforcement.
The Trump administration insists that the fund is not partisan or limited to Republicans but has not ruled out payments to those involved in the January 6 riot.
Asked about the Newsom proposal during today’s White House press briefing, Treasury Secretary Scott Bessent trashed the idea. “There is no cure for stupid,” Bessent said.