Radical Federalism in Action: How California Can Lead the Resistance
A case study in the local implementation of Radical Federalism in the Golden State
The time for abstract discussions is over.1 California is in the crosshairs, and the battle has begun.
Federal funds are being weaponized against California—disaster aid is conditional on political concessions, and funding clawbacks are being used as punishment.
The Trump administration has already frozen infrastructure and housing funds to exert control.
Governor Gavin Newsom wavers—flirting with federal demands, signaling that California’s leadership is willing to compromise.
This is a moment of reckoning. California must choose between submission and leadership.
Our answer? Radical Federalism.
By building local power, reclaiming economic independence, and overhauling systems that leave Californians vulnerable, we can forge a future where California controls its own destiny.
I. How California’s Political Leadership Must Respond
California’s Democratic supermajority has long positioned itself as the counterweight to federal overreach. But rhetoric alone will not protect us.
State Sovereignty Must Be Clear
California’s leadership must reject any compromise that dilutes state power.
Newsom must unequivocally resist federal pressure—even if that means defying mixed signals that echo Washington’s demands.
Right now, he is trying to have it both ways—signaling a willingness to negotiate on sanctuary policies while claiming California is leading the fight.
That is not leadership—it is capitulation.
Legislative Action Is Essential
The state legislature must pass bold, immediate measures that secure local autonomy.
This includes expanding sanctuary protections and enacting “State First” economic policies that prevent federal coercion through funding restrictions.
Declare California’s Commitment to Economic Sovereignty
The governor must send an unambiguous message:
California will not be economically blackmailed.
This means funding its own infrastructure projects, developing alternatives to federal relief programs, and creating a financial firewall against federal leverage.
II. Reclaiming the Economy: Concrete Economic Strategies
█ If California waits until the funding is cut, the battle is already lost.
The time to secure economic sovereignty is before the federal government begins full-scale financial retaliation.
1. Secure a State-Run Financial Infrastructure
Fast-Track the California Public Bank
Expand the California State Bank immediately so that tax revenues, pension funds, and state finances are kept local.
Demand that state employees and local governments use state-backed financial services—ensuring our money is insulated from federal manipulation.
Develop a Contingency Plan for Federal Fund Losses
California must establish a state-managed emergency reserve fund to guarantee continuity if federal aid—such as Medicaid, disaster relief, or infrastructure grants—is withheld.
2. Breaking Free: Building State-Owned Housing & Rent Stabilization to Protect Californians
The housing crisis is not an accident—it’s the direct result of state leadership being forced into bad deals dictated by Washington and corporate interests.
We must stop letting federal funds dictate housing policy.
Solution: A State-Controlled Housing System That Cuts Out Federal & Corporate Leverage
█ The California Public Housing Authority (CPHA)
A state-run entity that directly funds, builds, and manages affordable housing—insulated from federal restrictions.
█ Public Land Trusts
Land designated for non-speculative, affordable housing development, ensuring state-controlled housing stays permanently in public hands.
█ State Infrastructure Bonds
California must fund its own transit, water, and housing projects, eliminating reliance on D.C. approvals and federal spending cuts.
III. Disaster Relief for Everyone—Not Just the Wealthy
The federal government picks winners and losers with disaster aid—favoring the politically powerful while leaving working-class communities to fend for themselves.
This ends with a state-run insurance and disaster relief system that ensures funds are allocated based on need, not federal politics.
█ California’s Wildfire Insurance Authority (CWIA)
A public wildfire insurer that guarantees coverage for fire-hardened homes—not just expensive rebuilds in high-risk zones.
Tied to state-funded fireproofing efforts so the insurance system actively reduces risk.
█ Public Catastrophe Reserves to End FEMA Dependence
Establishing a California Disaster Relief Fund modeled on Florida’s Hurricane Fund and France’s NATCAT system.
Ensuring independent disaster response funding without waiting on Washington.
█ Fair Disaster Relief Distribution
State funds must prioritize vulnerable communities and working-class residents—not just those with the best political connections.
IV. No More ICE Collaboration—Fire Any Sheriff That Cooperates
Statewide sanctuary laws mean nothing if local law enforcement is allowed to betray California’s resistance.
Yet across the state, some sheriffs are openly working with ICE—even as Trump escalates mass deportations.
█ Any sheriff that defies California’s sanctuary laws and collaborates with ICE must be removed. Immediately.
Three-Point Plan for Total ICE Non-Cooperation:
█ Strip State Funding from Any Law Enforcement Agency That Aids ICE
Any sheriff or police department that shares data with ICE, holds individuals for deportation, or otherwise collaborates with federal immigration enforcement must be cut off from all state funding.
█ Remove Sheriffs Who Violate California Law
California has the authority to remove elected sheriffs who refuse to follow state law.
The Attorney General must prosecute rogue law enforcement officials who defy sanctuary policies.
█ Empower Cities & Counties to Resist Federal Pressure
Local officials must refuse to cooperate with sheriffs acting as federal enforcers.
City councils and county boards must formally bar local collaboration with ICE.
Redirect law enforcement funding to city-run police departments that uphold sanctuary protections.
V. Securing Economic Sovereignty: State-Controlled Financial & Housing Systems
If California waits until the funding is cut, the battle is already lost.
The time to secure economic sovereignty is before the federal government begins full-scale financial retaliation.
█ Fast-Track the California Public Bank
Expand the California State Bank immediately so tax revenues, pension funds, and state finances are kept local.
Public banking must serve renters, workers, and small businesses—not just state government functions.
Stop relying on Wall Street for state financing.
█ Develop a Contingency Plan for Federal Fund Losses
Establish a state-managed emergency reserve fund to guarantee continuity if federal aid—such as Medicaid, disaster relief, or infrastructure grants—is withheld.
█ Multi-State Resistance: California Cannot Fight Alone
A unified multi-state front will break Washington’s ability to retaliate against individual states.
Establish a Multi-State Sovereignty Compact
Pool financial resources into a Multi-State Economic Stability Fund
VI. The Root of California’s Crisis: Federal Dependence Forces Bad Housing & Disaster Relief Policies
Newsom is failing to do enough because California lacks the financial independence to act differently.
Federal dependency means that:
Housing development is at the mercy of Washington—whenever federal infrastructure funds are frozen, California’s transit and housing projects get delayed for years.
Federal housing grants come with conditions—forcing the state to comply with policies that prioritize corporate developers and financial speculation over affordable housing.
Disaster relief is selectively applied—rural and working-class areas are neglected while wealthy donor-heavy enclaves get fast-tracked assistance.
Without economic sovereignty, every governor will be forced into the same compromises.
The solution is clear: California must sever its reliance on federal housing, infrastructure, and disaster funding.
VII. The Choice is Clear: Submit or Lead?
█ If California’s leaders hesitate, Washington will exploit that weakness.
█ These must be enacted within weeks, not years:
█ Full legal resistance to federal immigration enforcement.
█ Expansion of state-run financial independence initiatives.
█ Implementation of energy and water sovereignty policies.
█ Radical reform of the state insurance industry.
█ Formation of a multi-state radical federalist alliance.
California must decide: Will it submit to federal coercion or lead the revolution for local self-governance?
Radical Federalism is no longer an idea—it is a necessity.
Read more in our related posts:
For today, anyway. We have some exciting things planned and will return to topics like those discussed in Strategic Outflanking: Lessons from History on State Maneuvering and Legal Resistance in due course.
I’m so conflicted - there is a paradox here. What you’re proposing, these tools against tyranny, can also backfire and fragment power in ways that make states vulnerable to private domination… especially from billionaires with tech libertarian ambitions of reshaping governance.
What additional steps do the states need to take to protect against walking right into the so called network state..?
It seems like there is no way for the tech bros to lose here.
Maybe it’s just time to cut our losses and move to Antarctica.