Treasury Secretary Scott Bessent Warns Gavin Newsom Could Face Criminal Charges for Threatening to Withhold Federal Tax Payments |

Accusations Fly Between Treasury Secretary and California Governor

Treasury Secretary Scott Bessent has leveled a serious charge against California Governor Gavin Newsom, alleging that the governor is engaging in a scheme that could be classified as criminal tax evasion. Bessent cautioned that Newsom’s actions could undermine the financial integrity of both the nation and the legal status of numerous businesses operating in California.

“Governor @GavinNewsom is threatening to commit criminal tax evasion,” Bessent asserted.

“His plan: defraud the American taxpayer and leave California residents on the hook for unpaid federal taxes.”

Governor @GavinNewsom is threatening to commit criminal tax evasion.

His plan: defraud the American taxpayer and leave California residents on the hook for unpaid federal taxes. (1/3) https://t.co/fn7ch7WwoC

— Treasury Secretary Scott Bessent (@SecScottBessent) June 8, 2025

This shocking allegation comes on the heels of Newsom’s public outburst last Friday, during which he threatened to withhold billions in federal tax payments from Washington, D.C. This display of frustration follows reports that President Donald Trump is considering cutting federal funding to California due to what he perceives as extreme policies and mismanagement within its universities.

Newsom’s emotional response was ignited by a CNN report indicating that the Trump administration is contemplating a complete cessation of federal grants to California’s expansive university systems, particularly targeting the University of California and California State University for their failure to adequately address anti-American and antisemitic activities on campuses.

“Californians pay the bills for the federal government. We pay over $80 BILLION more in taxes than we get back. Maybe it’s time to cut that off, @realDonaldTrump,” Newsom vented on X.

Such a radical course of action could be interpreted as a direct challenge to the U.S. Treasury, potentially embroiling businesses and payroll administrators in serious legal jeopardy regarding federal tax obligations.

“I am confident that most California businesses recognize that failing to remit taxes owed to the Treasury constitutes tax evasion and have no desire to pursue the perilous course Governor @GavinNewsom is suggesting,” Bessent added.

“I caution state officials, including payroll managers, that federal law imposes personal liability for any ‘attempt to evade or defeat tax.’”

I am certain most California businesses know that failing to pay taxes owed to the Treasury constitutes tax evasion and have no intention of following the dangerous path Governor @GavinNewsom is threatening.

I would warn state officials, including payroll managers, that federal…

— Treasury Secretary Scott Bessent (@SecScottBessent) June 8, 2025

Under federal law (26 U.S. Code § 7201), any individual who “willfully attempts in any manner to evade or defeat any tax” is committing a felony. Newsom’s remarks could be seen as inciting widespread disregard for the law—an astonishing development from someone holding the position of a state governor.

Bessent did not hold back in his final critique, suggesting that Newsom would be better served by abandoning radical ideas in favor of more pragmatic economic strategies:

“@GavinNewsom’s comments are extremely reckless,” he remarked.

“Instead of engaging in criminal tax evasion, Governor Newsom should explore a tax plan for California that mirrors the Trump Tax Cuts, aimed at alleviating the heavy tax burden on families so they can retain more of their hard-earned income.”

.@GavinNewsom’s comments are extremely reckless.

Instead of committing criminal tax evasion, Governor Newsom should consider a tax plan for California that follows the Trump Tax Cuts model and reduces the onerous state tax burden to allow families to keep more of their…

— Treasury Secretary Scott Bessent (@SecScottBessent) June 8, 2025