Trump threatened to withhold emergency aid to California; Newsom reveals a contingency plan.

The California governor is contemplating the establishment of a state account to safeguard against the possibility of former President Donald Trump denying disaster relief funding to California.

Trump threatened to withhold emergency aid to California; Newsom reveals a contingency plan.
SACRAMENTO, California — Governor Gavin Newsom and his administration are taking further steps to prepare the Golden State in the event that former President Donald Trump regains the presidency.

Newsom and senior budget officials are working to create an emergency fund that the state could quickly access for disaster relief should Trump withhold federal funds for fires, floods, and other emergencies.

While Newsom has not specified a dollar amount for these contingency plans in advance of his January state budget proposal, he emphasized that the possibility is “not an inconsequential consideration.”

“You could have multiple disasters stacking up just like they did with these two storms, and you’re going to have serious cash flow issues, even a state as large as California, even with budget reserves that are significant,” the Democratic governor explained in an exclusive interview with PMG. “You have massive fires that cost billions and billions of dollars,” he added, “just for the debris removal, let alone the recovery.”

This financial strategy, reported here for the first time, reflects a direct reaction to Trump’s past threats to withhold federal emergency disaster relief for politically motivated reasons. Newsom's remarks also coincide with findings from PMG's E&E News, which revealed Trump’s partisan handling of disaster assistance, particularly to areas he viewed as politically opposed to him.

As such, Newsom indicated that these potential budgetary measures are necessary to protect the state from Trump's unpredictable actions, characterizing the funds as functioning like a line of credit.

“We have different scenario plans in the budget for many different issues,” Newsom stated. “And one is this flexible account for cash flow purposes.”

California’s contingency planning is one of many methods that state officials are revisiting and adjusting in real-time to strengthen their defenses against Trumpism. PMG has been documenting California’s so-called Trump-proofing initiatives since March, when Trump campaign personnel acknowledged that the state’s electric vehicle programs would be a prime target. Recently, PMG reported that officials are rigorously testing their climate laws, seeking agreements with industries to bypass legal challenges, and urging the Biden administration to approve California's clean air regulations ahead of the upcoming election.

“This is serious,” Newsom remarked regarding Trump’s threats. “He’s serious about this.”

In discussions about previous confrontations with Trump regarding federal funding for state emergencies, Newsom recounted experiences in a separate interview with MSNBC's Jen Psaki that aired on Sunday. Trump has recently reiterated his threats, stating with clarity that he would withhold funding from California, citing water policy among his reasons.

“Gavin Newscum [Newsom] is going to sign those papers,” Trump said last month at a news conference in Southern California, seemingly alluding to a 2020 federal ruling that increased water deliveries by relaxing endangered species regulations, which Newsom subsequently challenged. “If he doesn’t sign those papers, we won’t give him money to put out all his fires, and if we don’t give him the money to put out his fires, he’s got problems.”

A spokesperson for Trump’s presidential campaign was unavailable for immediate comment.

In the PMG interview, Newsom depicted Trump’s demands as irrational, arguing that they stemmed not from actual policy disputes but from political vendettas against the Democratic-leaning state. He claimed that Trump had previously encouraged him to violate federal environmental laws.

“This is not figurative. It’s literal. And I don’t think it, I know it, because it’s exactly what happened when he was president and I was governor,” Newsom stated. “He did this on multiple occasions, on the ‘rake the forest’ BS, and sent out tweets, and I had to personally call him because FEMA was not getting back. And we were told the only decision that would be made on this would come from the White House directly. And I had to go on bended knees to ask him directly.”

Remembering discussions from late 2020, Newsom shared that Trump “was very threatening,” warning him before the election, “You better work with me now, because I’m going to get reelected and you’re going down on this.”

PMG’s E&E News report indicated that to sway his decisions, officials highlighted that heavily affected Orange County, California, had more Trump supporters than the entire state of Iowa.

Newsom pointed out that it was not just politically mixed Orange County that faced risks but also predominantly rural, Republican areas in Northern California, including Paradise, which was ravaged by the Camp Fire in 2018.

“He’d do that to his own supporters,” Newsom remarked, “in order just to hurt California.”

He explained that Trump attempted to get other members of his administration involved in leveraging disaster relief to “get a deal.” Notably, Trump’s aides sent back-channel messages to Newsom about Trump’s repeated recommendations that California “rake” its forests to prevent fires.

“They literally were laughing behind his back, saying, ‘Let’s not waste our time on this. There is no deal to be done on any of this,’” Newsom recalled. “‘This guy, he doesn’t know what he’s talking about. He literally doesn’t know what he’s talking about.’”

Newsom’s lawsuit related to Trump administration regulations from February 2020, when the former president claimed the rules would deliver more water to Central Valley farmers by allowing more fluid pumping policies that would enable increased water extraction from the Sacramento-San Joaquin Delta.

The Biden administration is currently revising these regulations and intends to release its version by year’s end, prior to a possible Trump presidency in 2025. Newsom’s administration has stated that it will seek a separate state permit that would allow it to regulate the state side of the pumps in accordance with more rigorous endangered species protections, irrespective of the election outcome.

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Lucas Dupont contributed to this report for TROIB News