California Set To Lose Massive Amounts of Federal Funding
- PAUL PRESTON
- Jun 6
- 2 min read
AENN
Mountain Top Times
The California economy has been under financial assault since Gov. Newsome declared a $97 billion surplus in 2022 thanks tothe Biden “Inflation Reduction Act.” But California’s awesome fire hose of federal cash based on controlling 53 seats in the U.S. House of Representative, is set shrivel by 5 to 7 seats due to the 2030 U.S. Census.
The U.S. House of Representatives control federal spending and Congressional seat allocation is based on 425 seats. Each state gets at least 1 representatives, then the remaining 375 seats are allocated according to state population sizes every 10 years.
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California was allocated 2 Congressional seats when it entered the Union 1850. After WW1, California with 11 seats had about the same Congressional clout as Alabama with 10 seats. At the end of WW2, California with 23 seats had less Congressional clout than Illinois with 26 seats, and New York with a dominant 45 seats.
California despite high in-migration from other states, did not pass New York until the end of the Viet Nam War in the 1970s. California reached a high of 53 seats in 2000, and only lost 1 seat in 2020 due to the Southern U.S. states growing at a faster pace than the West for the first time.

With that huge U.S. Congressional dominance, California’s Congressional delegation voted itself a dominant share of federal funding. Gov. Newsome’s 2025-2026 state budget forthe fiscal year beginning July 1st estimates that about 34.6% of California spending, or about $170 billion, will be paid by the federal government.
Federal cash has supported a dizzying array of public services that touch Californian’s lives including health care, welfare, child-care, public schools, and a train to nowhere.
But the 170-year economic miracle that was California, has turned into a nightmare with the highest U.S. tax rates, worstcrime, and the highest unemployment, and poverty.
As a result, California now has the largest out-migration of any state in the nation. If the trend continues through the U.S. Census in 2030, California could lose 5-7 U.S. Congressional seats. That works out to a loss of $20 to $30 billion of federal cash.
President Trump announced on June 6th that he is also preparing to cancel a huge swaths of federal funding for California, due to the state refusing to terminate its’ policies for Sanctuary State; allowing biological males to compete in female sports; and demanding state workers continue the now illegal Diversity, Equity and Inclusion policy.
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