this post was submitted on 06 Jun 2025
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The Trump administration is preparing to cancel a large swath of federal funding for California, an effort that could begin as soon as Friday, according to multiple sources.

Agencies are being told to start identifying grants the administration can withhold from California. Sources said the administration is specifically considering a full termination of federal grant funding for the University of California and California State University systems.

Singling out one state for massive cuts would be an unusual move, but Donald Trump has long made Democratic-led California a target.

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[–] UnderpantsWeevil@lemmy.world 9 points 1 day ago (1 children)

Taxes are collected through the private for-profit banking system in a manner that's completely disjointed from the state of residency. Payroll taxes are incredibly efficient, with north of a 98% collections rate, for this reason. The private banks need the Federal Reserve and the Federal Reserve needs the US Treasury. So when the US Treasury says it's taking a vig on your employer's deposit at Bank of America or Citigroup or even your local Credit Union, compliance is instant and unquestioning.

Going Unbanked is one way to get around this. But without an employer who is operating on the same wavelength and willing to play ball, unbanking yourself is difficult and expensive and fraught with criminal liabilities.

So, the short answer is that there's no (practical) way for a State Government to intervene on Federal income tax collection. Not when all the transactions are taking place in a server farm hosted in a NYC boiler room, anyway.

[–] fodor@lemmy.zip 2 points 15 hours ago (1 children)

There are other comments that already give practical ways to accomplish what you say is impossible.