Treasury Secretary Warns California Officials Over Tax Withholding Plan
U.S. Treasury Secretary Scott Bessent issued a sharp warning to California state officials and businesses on Monday, saying any attempt to withhold federal taxes—as suggested by Governor Gavin Newsom—could constitute criminal tax evasion.
“I am certain most California businesses understand that failing to remit taxes owed to the Treasury is a serious offense,” Bessent wrote on X. “State officials, including payroll managers, should be aware that federal law imposes personal liability for attempts to evade or defeat taxes.”
Bessent called Newsom’s proposed defiance of federal tax policy “extremely reckless” and urged the governor to instead adopt a tax framework modeled after the Trump-era tax cuts, which he argued would ease California’s heavy tax burden and give working families more financial freedom.
President Donald Trump weighed in on a separate controversy in the state, threatening California with “large-scale fines” after a biological male athlete won multiple events in the girls’ state track and field championships.
The athlete, AB Hernandez, took first place in the girls’ high jump and triple jump, and second in the long jump at the recent state finals. The California Interscholastic Federation (CIF) had amended its rules for the event, temporarily expanding the number of podium spots to ensure that female athletes who would have otherwise medaled still received recognition.
Despite the accommodations, the incident sparked backlash. Hernandez shared podium placements with female athletes who finished immediately behind, reigniting debate around trans participation in girls’ sports.
Meanwhile, the U.S. Department of Justice has launched a federal investigation into whether California’s policies may violate Title IX, the federal civil rights law that prohibits sex-based discrimination in education. The Department of Education has been conducting a similar probe since February.
With input from Fox News
