SAN FRANCISCO (KPIX 5) – The state of California is studying ways to suspend financial transfers to Washington after the Trump administration threatened to withhold federal money from sanctuary cities, KPIX 5 has learned.
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Officials are looking for money that flows through Sacramento to the federal government that could be used to offset the potential loss of billions of dollars’ worth of federal funds if President Trump makes good on his threat to punish cities and states that don’t cooperate with federal agents’ requests to turn over undocumented immigrants, a senior government source in Sacramento said.
The federal funds pay for a variety of state and local programs from law enforcement to homeless shelters.
READ MORE: 8 People Displaced by House Fire in San Lorenzo“California could very well become an organized non-payer,” said Willie Brown, Jr, a former speaker of the state Assembly in an interview recorded Friday for KPIX 5’s Sunday morning news. “They could recommend non-compliance with the federal tax code.”
California is among a handful of so-called “donor states,” which pay more in taxes to the federal Treasury than they receive in government funding, according to the latest available figures from the non-profit think tank Tax Foundation.
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