Newsom touts 52 lawsuits over $168B in frozen Trump funds in final State of the State
Speaking Jan. 8, 2026 in Sacramento, Gov. Gavin Newsom used his final State of the State to say California has filed 52 lawsuits in a special session targeting about $168 billion in what he called “illegally frozen” federal resources for schools, hospitals and seniors, saying the state has won emergency relief in some cases. He framed the Trump administration as an “assault on our values,” highlighted state work on homelessness (saying unsheltered homelessness fell 9%), climate and health care, and pushed back against federal actions while responding to a federal probe into alleged fraud in California homelessness programs.
đź“Ś Key Facts
- On Jan. 8, 2026, in Sacramento, Gov. Gavin Newsom delivered his final State of the State address, speaking for more than an hour.
- Newsom said California has filed 52 lawsuits in a special session against the Trump administration, calling the cases a response to 'executive overreach.'
- He said the litigation targets about $168 billion in allegedly 'illegally frozen' federal resources meant for California schools, hospitals and seniors, and said the state has 'won the request for emergency relief' in some cases, framing those outcomes as affirmations of the U.S. Constitution.
- Newsom framed the Trump administration as an 'assault on our values,' accusing it of governing through fear and a 'carnival of chaos,' and explicitly listed actions he said the president 'can’t' legally take — cutting off food assistance, deploying the military into U.S. cities without justification, or cutting funding for medical research, homeland security or disaster response.
- He highlighted state work on homelessness, climate policy, crime and health-care costs, claiming unsheltered homelessness fell about 9% last year.
- Newsom tied his remarks to the first anniversary of Los Angeles‑area fires, saying California has requested nearly $34 billion in federal recovery aid and accusing the president of 'turning his back' by not responding.
- The speech included political messaging — Newsom mocked critics with 'California Derangement Syndrome,' contrasted California’s approach with Trump’s policies (including National Guard deployments and disputes over food aid), and used the address to defend his eight‑year record amid speculation about a 2028 presidential run.
- Republican state Sen. Rosilicie Ochoa Bogh responded that Newsom’s rhetoric does not match results, criticizing high electricity and gas prices and saying families are 'taking extra shifts.'
- The coverage notes the Trump administration has opened a federal probe into alleged fraud in California homelessness and related programs; Newsom’s office says he has been working to police those programs.
đź“Š Relevant Data
Lack of affordable housing and high rental costs are primary drivers of homelessness in California, with the state having only 24 affordable and available rental homes for every 100 extremely low-income renter households in 2024.
State of Homelessness: 2025 Edition — National Alliance to End Homelessness
In California, electricity rate increases in 2025 are driven by wildfire mitigation costs, infrastructure upgrades, and rising natural gas prices, leading to average residential bills rising by 13% from 2024 levels.
2025 CA Electric Rates: Baker Home Energy Solutions — Baker Home Energy
Latinos comprise 23% of the population in the 2025 Los Angeles wildfire evacuation zones but account for 36% of workers in those areas, indicating overrepresentation in high-risk employment sectors.
Wildfires and Latino Communities: Analysis of Residents, Workers, and Businesses in Evacuation Zones — UCLA Latino Policy & Politics Institute
High cost of living, particularly housing, is the primary reason cited by 700,000 adults who left California between 2014 and 2024, with net outmigration in 2024-2025 disproportionately affecting lower-income households moving to lower-cost states.
Who's Leaving California—and Who's Moving In? — Public Policy Institute of California
In California, Hispanic adults are more likely than White adults to forgo routine health checkups due to costs, with 30% of Hispanics reporting no checkup in the past year compared to 26% of Whites in 2025.
Key Data on Health and Health Care by Race and Ethnicity — KFF
California's climate policies, including cap-and-trade, have led to higher energy costs that disproportionately burden low-income households, with such households spending up to 10% of income on energy compared to 3% for higher-income groups in 2025.
Passing the check: How overlapping climate policies shift the economic burden across income groups — ScienceDirect
đź“Š Analysis & Commentary (1)
"A City Journal opinion finds Gavin Newsom politically and legally adroit in turning Trump’s frozen federal payments into a multi‑front lawsuit-and‑messaging campaign—admiring his effectiveness while warning the tactics are theatrical, risky, and substitute litigation for durable policy solutions."
đź“° Source Timeline (3)
Follow how coverage of this story developed over time
- Newsom specifies that California has filed 52 lawsuits in a special session against the Trump administration over what he calls 'executive overreach.'
- He quantifies the litigation as targeting about $168 billion in 'illegally frozen' federal resources that he says belong to California schools, hospitals and seniors.
- Newsom explicitly cites having 'won the request for emergency relief' in at least some of these cases and frames the outcomes as affirming the U.S. Constitution as the 'supreme law of the land.'
- He directly rebukes Trump by listing actions he says the president 'can’t' legally take: cutting off critical food assistance, sending the military into U.S. cities without justification, or cutting funding for medical research, homeland security or disaster response.
- The piece notes that Newsom’s legal posture comes as the Trump administration has opened a federal probe into alleged fraud in California homelessness and related programs, which Newsom’s office argues he has actually worked to police.
- Newsom actually delivered his final State of the State speech on Jan. 8, 2026, in Sacramento, speaking for more than an hour.
- He framed Trump’s second-term administration as an 'assault on our values,' called the federal government 'unrecognizable,' and accused it of governing through fear and a 'carnival of chaos.'
- Newsom said California has sued the Trump administration more than 50 times since Trump returned to office.
- He highlighted state work on homelessness, climate policy, crime and health-care costs, and claimed unsheltered homelessness dropped 9% last year (the article’s next paragraph was starting to give that data).
- He mocked critics as having 'California Derangement Syndrome' and contrasted California’s policies with Trump’s National Guard deployments to Democratic cities, disputes over food aid, and cuts to medical research.
- Newsom tied his remarks to the first anniversary of devastating Los Angeles-area fires, reiterated that California has requested nearly $34 billion in federal recovery aid, and accused Trump of 'turning his back' on Californians by not responding.
- Republican state Sen. Rosilicie Ochoa Bogh responded that Newsom’s rhetoric doesn’t match results and criticized high electricity and gas prices, saying families are 'taking extra shifts.'
- The article notes Newsom is eyeing a 2028 presidential run and used the speech to defend his eight-year record leading California.