Treasury Secretary Scott Bessent on Thursday sharply criticized California Gov. Gavin Newsom’s proposed tax on a federal compensation fund for victims of government weaponization, dismissing the plan with a blunt rebuke.

“There’s no cure for stupid,” Bessent said at a White House briefing when asked about Newsom’s proposal to tax President Donald Trump’s $1.776 billion fund.

The fund is intended to compensate people the Trump administration says were harmed by the political weaponization of federal agencies.

Trump and his allies have repeatedly accused the federal government under previous administrations of targeting conservatives, political opponents and other Americans through investigations, prosecutions and regulatory actions.

Newsom’s proposal would seek to tax payments made from the fund to California residents, setting up a potential clash between the Democratic governor and the Trump administration over whether such compensation should be treated as taxable income.

Bessent’s comment reflects the administration’s opposition to any state-level effort to claim a portion of the payments. 

Newsom, a frequent critic of Trump, has positioned California as a leading counterweight to the administration’s agenda. The governor has clashed with Trump over immigration, climate policy, federal funding and law enforcement priorities.

The proposed tax could intensify those disputes, particularly if California moves to collect revenue from residents receiving federal compensation.

The dispute comes as Trump continues to make claims of government weaponization a central theme of his second term. The administration has said the compensation fund is part of an effort to address abuses by federal agencies and restore public trust.

It remains unclear how many people would be eligible for payments from the fund or how the administration would determine compensation amounts.