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Gov. Gavin Newsom has signed off on a 100% state tax on money any Californians receive from Trump’s $1.8-billion “anti-weaponization” fund for his political allies.

Newsom unveiled his proposal in May, after Trump’s Justice Department said it would create a fund to compensate Trump’s allies who claim they have “suffered weaponization and lawfare” under Biden’s Justice Department.

The settlement fund was criticized by politicians on both sides of the aisle, including Sen. Mitch McConnell (R-Ky.), who described it as a “slush fund to pay people who assault cops.”

The fund remains in legal limbo. Earlier this month, a federal judge in Virginia extended a court-ordered block on the plan, which critics warned could be used to pay pardoned Jan. 6 rioters.

Fast-tracked into law as part of Senate Bill 122, Newsom’s plan imposes “a tax on any settlement fund payment from the federal Anti-Weaponization Fund, or any subsequent fund, settlement, or agreement, as provided, at a rate of 100%,” according to the bill text. The tax applies to all tax years between 2026 and 2030.

Newsom signed the bill Tuesday. In a statement, his office said the tax is meant to ensure that, should Trump’s fund proceed, California recipients won’t “receive favorable state treatment on those payments.”

“We believe democracy is worth defending, the rule of law matters, and public dollars should support victims—not those who attacked the very institutions that protect our freedoms,” Newsom said in the statement.

University of Southern California law professor Ariel Jurow Kleiman, an expert on tax law and policy, said that while Newsom’s tax is a “novel legal strategy,” she believes there is “no categorical legal restriction” preventing California from implementing it.

States have a “wide degree of discretion” to design their tax systems — including how they define income — so long as they do not violate their constitutions, Jurow Kleiman said.

If a California resident wanted to challenge the tax in court, they would need to show they were harmed by it to have standing to sue, according to Jurow Kleiman. That would mean receiving a payment from Trump’s settlement fund and then paying the 100% California tax. Unless the settlement fund is established and distributes payments, that scenario is unlikely.

While there have been proposals to levy a 100% tax on income above certain thresholds — Sen. Bernie Sanders (I-Vt.) in 2023 said he supports a 100% tax on income exceeding $1 billion — Jurow Kleiman said she is not aware of any governments that have adopted such a policy.

SACRAMENTO — Gov. Gavin Newsom has threatened to tax 100% of the money Californians receive from President Trump’s “anti-weaponization” fund for his political allies.

Trump’s Justice Department had announced last week that it would establish a $1.776-billion fund to compensate allies of the president who claim they have “suffered weaponization and lawfare” under the Biden administration’s Justice Department.

“Anyone from California that receives any of those funds, we want to tax 100% of those proceeds,” the governor told reporters Thursday.

“That’s an action the state of California can take …[and] it’s an action we look forward to taking.”

Just how Newsom would do so remains unclear. He indicated that he would need action from the Democratic-led California Legislature to impose the new tax. If adopted, the measure would likely face legal challenge.

The fund has prompted outrage from Democrats and some Republicans — including Sen. Mitch McConnell (R-Ky.), who said in a statement that the “slush fund,” which would “pay people who assault cops,” was “utterly stupid.”

Newsom’s remarks about Trump’s settlement fund came on Thursday as he signed a bill designed to prevent election interference ahead of Tuesday’s primary.

The bill, Senate Bill 73, restricts law enforcement agencies and officers — including those from federal agencies — from interfering with state and local election officials, such as confiscating ballots, voter rolls or voting machines without a warrant.

The governor said the bill is meant to address “legitimate anxiety” over threats to election integrity after Riverside County Sheriff Chad Bianco’s decision to seize ballots from the county’s voter registrar as part of a fraud probe. Bianco, a long-time Trump supporter, is one of the top Republicans running to succeed Newsom after the end of his second and final term as governor.

Newsom also pointed to ICE and Border Patrol’s decision last November to stage an event near Dodger Stadium, calling it a “show of force designed to intimidate free expression and free speech.”

“That’s why we have to step up and we have to draw the line,” Newsom said. “We have to clarify the rules of engagement… there are fines associated with this, criminal fines and jail time of three years, so that’s a warning [to] the folks out there that think they can do the bidding of the Trump administration.”

Newsom said he expects Trump to interfere with the upcoming election — noting that the president has falsely claimed that he “won” California in the last election.

“Every single thing that Donald Trump is saying only suggests that he will do more, not less, to intimidate and to impact the outcome of this election,” Newsom said. “I absolutely expect the worst again, because we’ve been on the receiving end of it.”