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The GOP-controlled Congress fled Washington amid a fight over whether to block the corrupt $1.8 billion slush fund President Donald Trump set up to compensate traitors who attacked the Capitol to help him try to steal the 2020 election. But Democrats have come up with a novel solution to ensure any Jan. 6 participant who receives “reparations” for their involvement in the insurrection won’t see a dime of their financial award.
Democratic officials in New York and California said this week that anyone who lives in those states and receives payment from the $1.776 billion “anti-weaponization” fund will have those funds taxed at 100%.
The idea started last week in Congress, when Democrats on the House Ways and Means Committee introduced the Stop Letting United States Heads Funnel Unauthorized Nontransparent Dollars Act of 2026. Astute readers will notice the bill name is an acronym for SLUSH FUND Act.

“As the war in Iran and harmful tariff policies continue to raise prices on food, fuel, fertilizer, and other goods, the President also wants to use taxpayer dollars to award his cronies and allies, including January 6 insurrectionists, through a $1.8 billion slush fund. This Administration’s senseless so-called ‘Anti-Weaponization Fund’ is yet another example of the President’s unacceptable and corrupt abuse of taxpayer funds for political gain,” Rep. Jimmy Panetta (D-CA), one of the lawmakers who introduced the legislation, said in a statement.
“Our legislation would ensure any sitting president who sues the U.S. government faces an 100% tax on any payout that they receive from a trial or settlement so that innocent taxpayers don’t get stuck footing the bill,” Panetta said.
However, given that Democrats do not control either chamber of Congress, it’s unlikely the legislation would pass, as Republicans fear angering their Dear Leader and getting on his bad side. What’s more, Trump would have veto power over their legislation, so its chances of ever becoming law are slim to none.
And thus, Democratic legislators in states Democrats have unified control over are introducing their own legislation that mirrors the bill introduced in Congress, as it could actually become state law.
On Tuesday, New York state Assembly Member Alex Bores—who is currently running for Congress—introduced the New York Anti-Insurrectionist Act to fight the “slush fund created by a lawless president.”
“It’s simple, if you’re a New Yorker and you take from this illegal slush fund, New York state will tax 100% of it,” Bores said Tuesday in a post on X. “If you storm the Capitol and you take from this slush fund, too bad we’re taking it.”
Related | These 9 people actually deserve money from Trup’s shady slush fund
Bores went on to tell NBC News that it’s a creative workaround to the fact that Democrats do not control Congress and thus cannot block Trump’s lawlessness without GOP support.
“We can’t stop Trump from breaking the law in Washington. But we can decide that in New York, money you got for attacking American democracy is fully taxable,” Bores told NBC News.
And on Wednesday, California Democratic Gov. Gavin Newsom said his state will do the same.
“If you get a payout from Trump’s January 6 slush fund, California will tax it at 100%,” Newsom said. “People who assault cops and overthrow democracy don’t deserve a taxpayer-funded payday.”
New Jersey could also follow suit, with state Sen. Andrew Zwicker saying that he is drafting his own version of the idea.
“I think it’s brilliant—because the slush fund is completely corrupt and utterly appalling,” Zwicker told Politico. “I think it’s a brilliant counter move to Trump’s corruption.”
Brilliant, indeed.
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