Gov. Newsom Claims Right to Withhold Federal Grants to Fund California Deficits
“would set a dangerous U.S. Constitutional precedent that a state governor and legislature can withhold spending federal funds during a crisis to fund its own budget deficit needs”
June 25, 2020 Yuba City, CA: California Gov. Gavin Newsom responded to a New California State press release regarding illegal borrowing of federal grant monies to fund budget deficits by claiming the right to seize federal grant funds from counties not requiring face masks.
New California State press release1 issued early on June 24, 2020 highlighted the State of California intending to fund its $85 billion budget shortfall2 through June 30, 2021 by accessing “Borrowable Resources” of over $59.6 billion, including the over $27 billion in federal health and financial stimulus dollars to address the COVID-19 pandemic.
Later the same day, Gov. Newsom told reporters, the State of California has the sovereign right to indefinitely hold billions of targeted federal grant monies from counties that are not in full compliance with the “new rules and regulations” in his recent COVID-19 Executive Order3.
Newsom stated that after doing what he referred to as a “budget deal” with the California Legislature, “We’re going to attach some considerations and consequences” for withholding federal funds from non-compliant counties.
New California believes that such action is a violation of law, and if implemented would set a dangerous U.S. Constitutional precedent that a state governor and legislature can withhold spending federal funds during a crisis to fund its own budget deficit needs.
New California State calls on the United States government to immediately take actions to prevent and protect the public safety by assuring that the State of California is not improperly or illegally using federal funds designated for health and financial stimulus as a source of “Borrowing Resources” to fund California’s $85 billion budget deficits.
New California is a new state in development exercising its Constitutional Right to form from the State of California. The process to form New California is authorized and codified in Article IV Sections 3 & 4 of the United States Constitution.
