WASHINGTON — The Department of Homeland Security bought two of the largest immigrant detention facilities in California for $1.5 billion, according to the private prison company that sold them.
The purchase comes as the department — flush with cash after Trump’s One Big Beautiful Bill Act infused the agency with $170 billion — has moved to scale up its capacity to detain immigrants without relying as heavily on private prison corporations.
In announcement Monday, the Tennessee-based CoreCivic said the sale of the 2,560-bed California City Detention Facility and the 1,994-bed Otay Mesa Detention Center in San Diego closed on July 2.
The company said it expects net proceeds of about $1.1 billion after income taxes and transaction expenses.
Ryan Gustin, public affairs director for CoreCivic, said such sales are not uncommon and that “the process was marked with rigor and integrity.” He added that the valuations were established through the federal government’s required appraisal process, using independent appraisers, who determined objective fair market value.
The sale doesn’t immediately change anything at the facilities — CoreCivic expects to continue managing them under existing contracts with U.S. Immigration and Customs Enforcement, according to the company and a filing with the Securities and Exchange Commission.
But the terms of those contracts could be modified given the change in ownership, the filing states. The California City facility contract expires in August 2027 and the Otay Mesa facility contract expires in December 2029, with the option to extend for another five years.
“We are pleased with the sales of these two mission-critical facilities for the Company’s government partner, which demonstrates the value of the Company’s underlying real estate portfolio, while reflecting our role as a long-term, flexible solutions provider to government,” CoreCivic CEO Patrick Swindle said in the announcement.
The Department of Homeland Security did not immediately respond to a request for comment.
During a quarterly earnings call in May, George Zoley, CEO of the GEO Group, another major private prison corporation, said that the company had been in discussions with ICE “regarding the potential sale of multiple facilities.”
Critics of the purchases of detention facilities say the Trump administration is simply looking to avoid state and local oversight by bringing them under federal ownership. That issue was raised during the GEO Group earnings call when a participant later asked why the federal government wants to own the facilities instead of contracting with third parties.
If the facilities are federally owned, Zoley replied, there are “more protections from unwarranted litigation that infringes upon the activities of the ICE processing centers.”
Zoley said federal ownership would bolster the legal defense of the facilities and the argument that “states can only have very limited involvement.”
“There’s been litigation regarding overseeing medical services, food services, general cleanliness, etc.,” Zoley continued. “It’s really unprecedented and I believe it’s fundamentally unconstitutional. As some blue states are considering more active involvement in oversight of facilities, I think the logical solution to much of that is federal ownership of the facilities.”
California tried to kick private detention operators out of the state, but the 2020 law was overturned in the Ninth Circuit Court of Appeals. Since then, state leaders have established oversight mechanisms through laws that allow for monitoring and investigation of detention centers by the California Department of Justice and local health authorities.
Asked to comment about the sale, Sen. Alex Padilla (D-Calif.) said his congressional oversight visits to facilities operated by CoreCivic have shown that immigrants who pose no public safety threat are being held in “unacceptable conditions.”
“Whether these facilities are operated by a private contractor or owned by the federal government, my expectations remain the same,” he said. “I will continue demanding transparency, accountability, and humane conditions that respect the dignity and rights of every person in immigration detention.”
Eight ICE detention facilities now operate in California, with a combined capacity to hold nearly 9,000 people.
The California City and Otay Mesa facilities have both been the subject of lawsuits by detainees alleging detainee mistreatment. CoreCivic calls such allegations unfounded and says it complies with all regulations concerning the treatment of detainees.
In its announcement on Monday, CoreCivic said the company is in discussions with ICE about potentially selling additional detention facilities, though it said those talks are in various stages and it’s unclear whether the sales will go through.
ANKARA, Turkey — President Trump said on Tuesday that the U.S. will lift sanctions on Turkey that were issued after Ankara purchased a Russian missile defense system that led to the country being kicked out of the F-35 fighter jet program.
There are still a number of legal hurdles before Turkey could be fully admitted back to the U.S. program, but the removal of the sanctions — issued under the Countering America’s Adversaries Through Sanctions Act — would help ease the process for Ankara to regain access to the F-35s, a top goal of Turkish President Recep Tayyip Erdogan and one that Trump has predicted for some time would occur.
“We’re going to be taking the sanctions off, OK?” Trump said in response to a question during a meeting with Erdogan at the presidential palace in Ankara. He said Cabinet officials were working on the matter. Earlier in the meeting, he said the possibility of selling the F-35s to Turkey is “certainly something we will consider.”
Trump and Erdogan repeatedly underscored their warm relationship as they met soon after the U.S. president arrived in Ankara for the NATO summit. Erdogan greeted the U.S. president with an elaborate welcome ceremony involving cannons, military officials on horseback and jets flying overhead emitting red, white and blue smoke.
“Sometimes you get along with the toughest people, like him,” Trump said, gesturing to Erdogan. The U.S. president repeatedly praised Turkey for its loyalty to the U.S., particularly during the war in Iran.
Trump, who has often upended NATO gatherings with complaints that European allies did not spend enough on defense, had said he would not have attended this year’s summit had it not been for his close ties with Erdogan.
Earlier in the day, NATO showcased a series of military projects worth billions of dollars — an investment that the alliance’s secretary-general, Mark Rutte, called “money well spent.”
An energized Rutte was speaking to government ministers and defense industry officials at a forum billed as NATO’s “big reveal,” to the thrum of techno music and a slick video display.
NATO as an organization does not own any weapons — these are the property of the 32 member countries — but it does have a fleet of 14 AWACS early warning radar surveillance planes that are about 50 years old, along with some newer surveillance drones.
A deal to replace the aging planes was announced Tuesday. Swedish manufacturer Saab will be supplying up to 10 new GlobalEye surveillance aircraft for a 10-nation consortium, Swedish Prime Minister Ulf Kristersson announced.
“It’s a moment of great pride,” he said, noting that the twin-engine aircraft would be “made within the alliance for all the alliance.”
Some of the projects will be paid for with funds from a system of cheap loans for defense purposes set up by the European Union, comprising up to $170 billion raised on capital markets.
“We need to ensure that we are translating our economic might into military capabilities, putting the cash to work from defense plans to drones, from money to missiles and interceptors,” Rutte said.
Trump has branded NATO a “paper tiger” that would cease to function without American arms and leadership. At the forum on Tuesday, Michael Duffy, a U.S. undersecretary of defense, said “the reality is that we need production increases across the board.”
“We will be looking to increase our exports to those who are looking to buy our equipment, and we’ll also be looking to partner with the expansion of production capacity here in Europe,” he said.
Representatives from 15 nations shook hands and patted shoulders on a vast podium under the NATO logo as they announced a multinational effort to buy air-to-air refueling and transport planes from Airbus.
Then Rutte announced a four-country effort to purchase as many as five new Triton surveillance drones to add to NATO’s small fleet.
“It is genuinely made in NATO, and creating jobs on both sides of the Atlantic,” he said.
Rutte told reporters on the eve of the military alliance’s two-day summit in Turkey that “we will announce tens of billions in new contracts that will provide the crucial kit we need to deter and defend.”
However, at Tuesday’s event, no dollar figures were given and the display included some projects long since agreed.
The defense industry splash comes a few weeks after Rutte tried to ease U.S. concerns about military spending at NATO with a new pitch using a chart labeled “The Trump Trillion” — showing $1.2 trillion in spending by European allies and Canada since 2017.
Trump appeared unmoved, saying he was still disappointed at some NATO allies’ refusal to join the Iran war, which he had launched alongside Israel without consulting them.
“We don’t need their money — we don’t need anything,” Trump said. “I just want loyalty.”
The summit is being held in Erdogan’s sprawling palace compound in Ankara, and Trump has suggested he would come bearing gifts for the Turkish leader.
Turkey was barred from the F-35 fighter jet program in 2019 after it purchased Russian-made S-400 missile defense systems. When asked about the fate of Turkey’s return to the F-35 system, Trump said as he sat next to Erdogan that “it’s certainly something we will consider.
Speaking Monday on the morning show “Fox & Friends,” Israeli Prime Minister Benjamin Netanyahu urged the U.S. not to sell F-35 fighter jets to Turkey, saying that Erdogan “calls openly for the annihilation of Israel.”
Turkey and Israel have acrimonious relations. Erdogan frequently accuses Israel of committing genocide in its war in Gaza, triggered by the deadly Oct. 7, 2023, Hamas-led attack on southern Israel.
Netanyahu said selling Turkey F-35s would “upset the power balance in the Middle East, which is ultimately guaranteed by Israeli air superiority and also, I think, by America’s posture in the Middle East.”
Turkey beefed up security and banned protests in Ankara during the summit, but a small group of demonstrators gathered on Tuesday in the capital. They were quickly surrounded by police, and a legal association said 22 students affiliated with the leftist Turkish Workers Party and three lawyers had been detained.
The Pentagon wants a reboot and is promoting what it calls “NATO 3.0,” a vision of the alliance in which Europe assumes greater responsibility for its own defense, freeing the U.S. to concentrate on other priorities.
But hiking defense spending means increasing taxes or diverting resources from other priorities. U.K. Defense Secretary John Healey unexpectedly quit last month, saying the British government was not willing to spend at a time of rising threats.
Separately on Tuesday, Ukrainian President Volodymyr Zelensky made a fresh appeal for his country to be allowed to join the alliance, saying its armed forces are highly experienced and resilient would only boost the alliance’s defense capabilities.
He highlighted Ukraine’s adaptability and its ability to strike deep inside Russia, hit oil refineries and other energy targets. He said that Ukraine’s armed forces are “eliminating” on average 30,000 Russian troops every month.
“Frankly we take no pride in this,” Zelensky said, noting that the war with Russia — now in its fifth year — is “a war we did not seek but one we are forced to fight.”
Concern is mounting among some northern and central eastern countries that Russia might be preparing a hybrid attack — a combination of conventional warfare with tactics like cyberattacks — on the continent as Russian President Vladimir Putin struggles to secure victory in Ukraine.
Cook, Fraser, Sewell and Kim write for the Associated Press. AP writers Jill Lawless in London and Andy Wilks in Istanbul contributed to this report.
PHOENIX — For decades, all that separated the U.S. from Mexico was barbed wire.
Now, after a massive infusion of cash from Congress, President Trump’s administration is swiftly building what it has dubbed a “smart wall,” a combination of 30-foot-tall steel fencing and an array of sophisticated technology like sensors, cameras and towers allowing Border Patrol to surveil the territory.
The wall is under heavy scrutiny for the billions of dollars being dedicated to it when border crossings are at their lowest in decades. Critics say the U.S. is militarizing the border as it increasingly deploys sophisticated surveillance technology to the area, impacting local communities.
“We are seeing a massive expansion of surveillance and surveillance technology across the borderlands,” said Ricky Garza, border policy counsel at the Southern Border Communities Coalition, an advocacy group. “The wall in all its forms is harmful to communities.”
Officials say the technology is complementary to the physical wall and frees up agents for other tasks.
“It’s a smart wall. It’s not just a barrier,” Customs and Border Protection Commissioner Rodney Scott said during recent congressional testimony. “It maximizes the use of our most valuable resource, which is our agents.”
The wall has been a top priority for Trump, a Republican, since he first ran for president.
During the administration of President Joe Biden, a Democrat, the border emerged as a flashpoint, with thousands of people seeking to cross into the country each day. Those numbers started to taper off shortly before Trump returned to office last year and then slowed to a trickle, with his broader immigration crackdown serving as a deterrent for would-be migrants.
Flush with $46 billion to finish the wall after an infusion by Congress for immigration enforcement, CBP is inking tens of billions of dollars in contracts to build the wall and push along the president’s signature project.
Homeland Security Secretary Markwayne Mullin said recently that a preliminary part of the wall will be finished by “this time next year.” Scott said his agency is putting up 6 miles of wall a week.
Hundreds of miles had already been built before Trump returned to office. As of mid-June 2026, CBP has erected another 74 miles and aims to build hundreds more. There is no wall planned for roughly 535 miles of the roughly 2,000-mile-long border, because rugged terrain already serves as a barrier. Ground sensors and towers will be used instead.
CBP is also going back to hundreds of miles of already built wall and adding more technology, lights and roads. Along the long stretches of river in Texas that mark the border with Mexico, they’re deploying 12- to 15-foot-long cylinder-shaped buoys meant to keep migrants or smugglers from crossing the border.
Technology is playing a greater role in the Trump administration’s effort to make illegal crossings along the border more difficult, part of a broader transformation of CBP in the years since Sept. 11, 2001, into an intelligence operation with a mass surveillance network whose reach extends far beyond the nation’s frontiers, according to reporting by The Associated Press.
And critics say the border technology poses a threat.
The Southern Border Communities Coalition says surveillance technologies can push migrants into more dangerous routes to avoid being detected.
Garza, the group’s policy counsel, warned that surveillance technology infringes on the privacy rights of border residents and that locals have found ground sensors used to detect smuggler or migrant traffic placed on their property without their consent.
Nayda Alvarez and her relatives own land along the Rio Grande roughly 125 miles inland from the Gulf of Mexico. She has found cameras placed on her family’s land, and just last week she spotted a surveillance tower about a quarter of a mile down the river from her house.
“Are we expecting a war or something?” she said. “It doesn’t make me feel safer.”
Dave Maass, director of investigations for the Electronic Frontier Foundation, a nonprofit that focuses on civil liberties related to digital technology, said the technology has made the border area “a hostile environment” for locals and would-be migrants.
The foundation has published a guide on the various types of surveillance towers in use along the southern border designed to help local residents.
These can range from fixed towers with video, infrared and radar technologies that have a range of roughly 8 miles to remote video surveillance systems that have cameras and a spotlight fixed on top. Some are mounted on the backs of trucks so agents can drive them to different parts of the border.
Increasingly, these towers are autonomous. They can scan an area, analyze what they’re seeing using artificial intelligence and alert Border Patrol agents to something suspicious. Proponents say this helps keep Border Patrol agents out in the field instead of sitting in front of computer screens watching for activity. But it also increases AI decision-making along the border when experts have warned about the technology’s potential for bias or other problems.
The big GOP tax cuts and spending bill passed by Congress last summer requires that CBP buys only the autonomous towers, and the department is deploying an additional 95.
Underground, buried fiberoptic cables can sense movement, capturing data that is also then analyzed by AI.
“We follow the contour of the land. We go through trees. We go down into the river banks. We can go absolutely everywhere,” said Magnus McEwen-King, CEO of Sintela, which has a contract with CBP to install the cables. He spoke at a recent border security expo in Phoenix, where some of the technology was on display.
CBP also uses ground sensors and trail cameras to detect smuggling routes.
The nonpartisan watchdog group Taxpayers for Common Sense has questioned both the huge amounts of money for the wall-building and whether taxpayers are getting their money’s worth.
In 2011, under Democratic President Obama, Homeland Security Secretary Janet Napolitano pulled the plug on a project to build a “virtual wall” of integrated technology like radars, sensors and cameras across the entire border after it ran over budget, faced technological glitches and was behind schedule.
Josh Sewell, director of research and policy at Taxpayers for Common Sense, said the organization would like to see more “robust evaluation” of the technologies being used to avoid similar scenarios. And he criticized the Trump administration for lack of oversight on how the money is being spent, a charge CBP has denied, citing “oversight mechanism.”
In the Big Bend area of southern Texas, opposition to the department’s wall-building plans gathered strong bipartisan support especially in the most sensitive areas that run through a state and national park and a wildlife area.
CBP now says it is not planning to build a 30-foot-high bollard wall in those areas. Its recently announced plans include installing patrol roads and some barriers designed to stop cars and using detection technologies.
Clara Benson, who is one of the founders of the No Big Bend Wall coalition, says bright lights in the area designed to illuminate the border could pollute the skies in an area renowned for having some of the best views of the stars. Even without a 30-foot-tall steel wall running through the land, there is concern about CBP’s plans.
“There’s still a lot of fear and dread that the plan is still going to be quite damaging,” she said.
Santana writes for the Associated Press.
Ethics experts sounded the alarm Wednesday after new financial disclosure reports revealed that President Trump’s income ballooned to $2.2 billion in 2025, with $1.4 billion coming from various new cryptocurrency-related businesses.
“It’s bribery. It’s graft. It’s exploitation of public power for private financial gain,” said Kathleen Clark, a law professor at Washington University and an expert in government ethics. “Trump has — with the acquiescence of a somnolent, GOP-controlled Congress and the active assistance of John Roberts’ Supreme Court — transformed the presidency into a massive corruption racket.”
Trump reported income of over $600 million in 2024. But after he entered the White House in 2025, he reported that his income had soared to more than $2.2 billion.
The 2025 annual disclosure report filed with the Office of Government Ethics shows that Trump ramped up his real estate business in countries across the globe, particularly in the Middle East, at a time when his government was negotiating over vital issues of military aid and economic tariffs. The president also expanded his dealings in the relatively new realm of cryptocurrency.
According to the 927-page report, Trump made $635 million in royalties from Celebration Coins and more than $500 million from his World Liberty Financial crypto firm. He drew in millions from a raft of Trump-branded merchandise including God Bless the USA Bibles and sneakers depicting him with his hand raised in a fist. He also brought in $10.4 million from a property in the United Arab Emirates and $9 million from a property in Saudi Arabia.
Noah Bookbinder, an ethics expert and former president of Citizens for Responsibility and Ethics, a nonprofit watchdog group in Washington, described Trump’s business dealings while in the White House as “entirely unprecedented, certainly in modern history, but I think by most ways of measuring, in all of American history.”
“This is corruption,” Bookbinder said. “You have a president who has been quite transparently using the presidency in ways that benefit his business interests and intertwining the presidency and business interests.”
But the president and the White House brushed aside ethics concerns about the money Trump is making.
Trump told reporters Wednesday that he made a lot of money before he came to the White House, he had “big institutions” run his money, and that he had benefited, like every other American, as the stock market went up.
“We’re all profiting,” he said. “I’m profiting because I have a lot of money and a lot of cash.”
In a statement, White House spokesperson Anna Kelly said: “Neither the President nor his family has ever engaged — or will ever engage — in conflicts of interest. … All actions by President Trump and his administration are taken in the best interest of the American people.”
Although the report does not show exactly how much Trump is earning — it provides details of revenue, rather than profit — the scale of the president’s cryptocurrency dealings elevated ethics watchdogs’ long-standing concerns.
Jordan Libowitz, a vice president at Citizens for Responsibility and Ethics, said the most concerning detail of the new report is the hundreds of millions of dollars coming in from various crypto ventures partnered with companies that the American public knows little about.
“At a time when his own administration itself is setting regulation for these types of companies,” Libowitz said, “there’s just this massive opportunity for corruption when foreign governments and foreign nationals can pour tens of millions of dollars into the president’s pocket.”
As a real estate mogul, Trump has long invested in hotels, condominiums and golf courses. But cryptocurrency, Libowitz said, offers vastly more potential for corruption.
“There’s only so many hotel rooms you can book, so many rounds of golf, but there’s no limit with crypto,” Libowitz said. “You can just buy his meme coin and he gets a cut, so you kind of take out the middleman, but also the cap or the amount of money you can funnel to the president.”
Libowitz said it was also problematic for Trump to expand his real estate empire in foreign countries, particularly the Middle East.
“Now it seems that almost all his new developments are in foreign countries, and that opens up, if you’re building this giant resort, you’re going to need help from the local government, whether it’s tax breaks or utility issues, or building a road, or speeding up permits,” Libowitz said. “These are ways that foreign governments can do favors for the American president.”
In the half a century before Trump was elected, ethics experts say, presidents from Nixon to Obama publicly released their tax returns, sold properties or put the proceeds in a blind trust managed by someone they did not know.
“They weren’t doing it because they legally had to, but because they thought it was the right thing to do,” Libowitz said.
Ever since Trump was first elected in 2016 and opted to not sell his businesses or put them in blind trusts, ethics experts have urged Congress to impose more aggressive financial oversight over money in politics.
“Congress needs to update the law, and basically, mandate blind trusts and sale of assets and disclosure of tax returns,” Libowitz said.
Noting that the Constitution’s Emoluments Clause explicitly states that the president cannot accept things of value from foreign or domestic governments, ethics experts say Trump is flouting the law and Congress has chosen to not enforce it.
Richard Painter, a law professor at the University of Minnesota and former White House ethics lawyer under President George W. Bush, said Congress needed to close loopholes that exempt presidents from federal conflict of interest laws as well as enforce the Foreign Emoluments Clause.
“Nobody holding a position of trust with the United States government can accept emoluments, profits and benefits from foreign governments, and that is flatly prohibited under the United States Constitution,” Painter said. “Now, if the United Arab Emirates put money into Liberty Financial, as I understand they did … and then Trump makes money off Liberty Financial, that’s a Foreign Emoluments Clause problem.”
Congress, he said, should empower an independent prosecutor to investigate such conflicts.
“The problem with the Foreign Emoluments Clause is how do we enforce it?” Painter said. “The founders and head of the Congress enforced it by impeaching anybody who took a bunch of foreign government money, but I guess that system’s not working. That’s a serious problem.”
The White House submitted a 927-page financial disclosure to the US Office of Government Ethics on Tuesday, offering the fullest picture yet of how US President Donald Trump’s fortune has grown since he returned to office in January 2025.
Barely established when he was sworn in, Trump’s crypto businesses now generate more revenue than large parts of the property empire he spent decades assembling with his family, earning the US president more than $1.2 billion (€1.05bn) last year.
Two ventures account for the bulk of the crypto windfall.
World Liberty Financial, the firm launched in 2024 by Trump’s sons and business partners, brought in more than $500 million (€438mn) from selling new crypto products, among them so-called governance tokens, which grant holders voting rights in certain company decisions but no ownership stake.
A separate business tied to the $TRUMP “meme” coin, a cryptocurrency bearing the US president’s face and name, generated a further $635 million (€557mn) from token sales.
Trump’s crypto activities appear to be a major driver of the near tripling of his personal fortune, which Forbes estimates rose from $2.3 billion (€2bn) to $6.5 billion (€5.7bn) between 2024 and 2026.
For many buyers, the story has been far less lucrative.
The $TRUMP coin, which briefly traded above $74 in the days after its launch, has since collapsed to under $2, while World Liberty’s tokens have shed around 80% of their value since they began trading last September.
Since the disclosure lists only revenue and not profit, the true scale of Trump’s personal gains cannot be known. However, the filing shows that the US president and his family collected fees and royalties up front, while many investors have seen the value of their holdings fall sharply.
Among those investors was Chinese-born crypto billionaire Justin Sun, who poured $75 million (€65.7mn) into the governance tokens and $200 million (€175.3mn) into both $TRUMP and $MELANIA meme coins.
A US fraud case against him was later paused before being resolved with a $10 million (€8.7mn) settlement. Sun has denied any connection between his spending and the outcome of his legal troubles.
After the release of the filing, the White House also rejected suggestions of any ethical concerns.
“Neither the President nor his family has ever engaged, or will ever engage, in conflicts of interest,” Principal Deputy US Press Secretary Anna Kelly said in a statement to AFP.
Kelly said US President Donald Trump had “proudly made the United States the crypto capital of the world.”
“All actions by President Trump and his administration are taken in the best interest of the American people, and any so-called ‘reporters’ pushing otherwise are recycling the same, tired, false narrative that Democrats and the legacy media have been pushing for a decade,” Kelly added.
The filing also details an aggressive international expansion, with new hotel, resort and condominium agreements generating millions of dollars in countries that were negotiating with Washington over trade and security at the same time.
A development in the United Arab Emirates earned the Trump business around $10.4 million (€9.1mn) last year, one in Saudi Arabia roughly $9 million (€7.9mn), and projects in Qatar, Romania and Vietnam were $5 million (€4.3mn) apiece.
Closer to home, the US president’s established businesses boomed alongside all the new ventures.
Mar-a-Lago, Trump’s private club in Florida, generated around $77 million (€67.5mn), a jump of roughly 50% on the previous year, as heads of state and executives flocked to the property during his new term.
The disclosure also reveals the wide range of ways the Trump brand is now monetised.
The US president earned millions from a sprawling range of branded goods, from sneakers and watches to bumper stickers, with Trump-branded watches alone bringing in $4.7 million (€4.1mn), and more than $200,000 (€175,300) coming from the “God Bless the USA” Bible, a branded edition promoted with country singer Lee Greenwood.
Branded merchandise of this kind, sold by a sitting US president, has no precedent.
A 1978 law requires the president and vice president of the United States to declare their income as well as their assets.
First Lady Melania Trump’s income is also set out in her husband’s financial disclosure, including more than $10 million (€8.7mn) tied to a biographical Amazon documentary and over $500,000 (€438,250) from her memoir.
For comparison, US Vice President JD Vance reported between $1 million (€876,500) and $5 million (€4.4mn) in royalties from his 2016 book “Hillbilly Elegy”.
Critics have long argued that such arrangements blur the line between public office and private profit. The White House rejects the charge outright.
SACRAMENTO — Gov. Gavin Newsom on Monday signed his final state budget as governor, a $351.7-billion spending plan that seeks to uplift the poorest Californians through a tax system reliant on the stock market gains of the wealthy.
In a video message, Newsom extolled free school meals, universal transitional kindergarten, 130,000 subsidized childcare slots and other accomplishments in his tenure at the state Capitol, a period in state history marked by a dramatic expansion of state government and over $100 billion in increased spending.
“Over the past eight years, we built great things for the people of California — some of the boldest actions any government in this country has taken in a generation,” Newsom said. “And we did this without breaking the bank. We did this by design.”
The agreement ends weeks of lobbying by outside interests and negotiations among lawmakers and the governor at the state Capitol about how to handle a surge of income tax collected on stock market gains related to artificial intelligence.
Economists have warned that the revenue bump is potentially temporary and analysts say the growth in state spending could leave California in a challenging position if the economy declines.
Assemblymember David Tangipa (R-Fresno) agreed with Democrats that the budget is “compassionate.”
“My fear is that it’s not too much of a competent budget, and the budget continues a pattern that Californians know all too well: Spend now, justify it later, and hope somebody else pays the bill,” he said during a floor debate Monday.
Here’s what you need to know about the spending plan, which takes effect July 1.
The simplest answer is: Democrats. California voters have elected Democrats to represent 30 of the 40 seats in the Senate and 60 seats of the 80 seats in the Assembly. The budget was passed through a majority vote in each house of the Legislature and signed by Gov. Gavin Newsom, also a Democrat.
A more complex answer is that the budget is a product of dozens of legislative hearings, millions of dollars spent on lobbying by outside interests, talks among lawmakers and the governor and ultimately subject to the same political dynamics that rule the Democratic party.
Senate President Pro Tem Monique Limón (D-Goleta) and Assembly Speaker Robert Rivas (D-Hollister), in consultation with the chairs of the budget committees, represent their Democratic caucuses and reach a final agreement on the details of the spending plan with Newsom. In reality, staff members for the three parties handle most, if not all, of the back of forth negotiations to get there.
Union leaders seeking better pay, working conditions, benefits for workers and opportunities to expand their ranks are often brought in to consult or hammer out thorny deals as business groups try to fight off more regulations, taxes and costs, and support policies that increase their financial performance.
The Legislative Analyst’s Office, the nonpartisan fiscal advisor for lawmakers, recently examined the increase in state spending since 2019-20, Newsom’s first full year in office.
Between the budget approved that year and the spending proposal Newsom unveiled in January, spending from the state’s main operating fund had grown by over $100 billion, or 70%. That was largely by a 60% increase in revenue during that time. California typically operates with a spending deficit because Democrats spend more money than the state brings in.
The LAO found that the increase in spending stemmed from the growing cost of sustaining programs and services that were already in place when Newsom took office. About 30% of the remaining spending growth was categorized as new, either by newly created programs or the expansion of existing services.
Among the report’s conclusions: California could not afford the programs that predated Newsom and the ones he and the Legislature adopted.
To balance the budget over the last few years, Newsom and lawmakers have dipped into the state’s reserves at a time when California is experiencing strong revenue growth, which the LAO has cautioned against. Democrats have also increased taxes on businesses, paid for programs out of other funds and suspended reserve deposits among other solutions.
This year, the state budget places $6.4 billion in higher than expected revenue into a temporary holding account to knock down a deficit and balance the budget through 2027-28.
Democrats are pursuing a change to the state constitution on the November ballot that would allow them to set aside more money in years of good revenue growth to prevent cuts in future downturns.
Education and Medi-Cal are the two largest costs for the state.
Medi-Cal is the state’s version of subsidized health insurance for low-income Californians and provides medical, dental and vision care for an estimated 14.5 million people, or about one-third of the state population.
The federal government pays for more than half of the cost of the program. California is expected to spend about $50 billion from the general fund next year out of a total estimated at more than $220 billion in costs shared between the state and federal government, according to the LAO. State taxes and fees on providers also help fund Medi-Cal.
Overall, Medi-Cal costs more than any other state program and takes up about 40% of total spending, including federal funds the state receives, according to the LAO.
Spending on Medi-Cal has more than doubled over the last 10 years, which the LAO attributes to an increase in costs per enrollee, more enrollees and a greater share of seniors seeking care, among other factors.
Under Newsom, California has expanded Medi-Cal, including offering coverage to include all immigrants regardless of their immigration status, which the governor said has dropped the state’s uninsured rate down to 5.9%
The cost of Medi-Cal has grown beyond what Democrats expected and resulted in Newsom suggesting spending cuts.
The final budget agreement rejects a call by Newsom to lower the asset limit to $2,000 now and instead lowers it to $21,000 in 2027-28 to be eligible for Medi-Cal. The Legislature also delayed the governor’s proposal to reduce dental coverage and shift asylum seekers and other immigrants to restricted scope Medi-Cal, according to Jason Sisney, the lead budget advisor for the Assembly who posts about the budget on Substack.
The budget includes Newsom’s proposal to shift enrollees with unsatisfactory immigration status, a term that includes undocumented immigrants and others, from managed care to fee-for-service to save costs.
Under Proposition 98, approved by voters in 1988, California has a minimum funding guarantee for schools and community colleges and dedicates roughly 40% of general fund revenue to education.
Sisney said the budget increases the Local Control Funding Formula by $2.2 billion and provides historic general fund per pupil spending of $21,148. Support for special education also grew by $1.8 billion.
The California Community Schools Partnership Program received a $1-billion boost and Democrats directed $2.8 million in additional funding to the program that provides free meals for school children.
The budget also establishes 22,770 new slots for free or reduced childcare, which Newsom had proposed decreasing.
South Korean Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol and representatives of government agencies, policy-finance institutions and major shipbuilders attend a signing ceremony for a Korea-U.S. shipbuilding cooperation investment agreement at the Export-Import Bank of Korea in Seoul on Thursday. Photo from the Ministry of Trade, Industry and Resources, used under KOGL Type 1.
June 25 (Asia Today) — South Korea launched a policy-finance framework Thursday to support $150 billion in shipbuilding cooperation with the United States, seeking to share early-stage investment risks with domestic companies expanding into the U.S. market.
The Korea-U.S. Strategic Investment Corporation, four state-backed financial institutions and three major South Korean shipbuilders signed a memorandum of understanding at the Export-Import Bank of Korea headquarters in Seoul.
The agreement is the first institutional step toward implementing the $150 billion shipbuilding cooperation package included in a bilateral strategic investment memorandum signed in November 2025.
The participating financial institutions are the Export-Import Bank of Korea, Korea Development Bank, Korea Trade Insurance Corp. and Korea Ocean Business Corp.
The three shipbuilders are HD Hyundai Heavy Industries, Samsung Heavy Industries and Hanwha Ocean.
Under the agreement, the participants will establish a Korea-U.S. Shipbuilding Cooperation Investment Council to identify U.S. investment projects, coordinate policy financing and jointly monitor their implementation.
The Export-Import Bank of Korea will serve as the council’s secretariat, coordinating communication among the institutions and overseeing the progress of individual projects.
South Korean Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol said shipbuilding cooperation is one of the two main pillars of strategic investment between South Korea and the United States.
Koo urged the investment corporation and policy lenders to develop financing measures that can provide companies with sufficient funding when it is needed.
“The government and policy-finance institutions must actively seek ways to share the risks and uncertainty of initial investments that individual companies cannot bear alone,” Koo said.
He said the initiative should help South Korean shipbuilders support the rebuilding of the U.S. shipbuilding industry while creating new contracts and markets across South Korea’s domestic shipbuilding supply chain.
The benefits should extend beyond large shipbuilders to small and midsize shipyards and marine equipment suppliers, he said.
“We must create a path for small and midsize shipbuilders and equipment suppliers to participate together as Team Korea,” Koo said.
The government plans to use the council to develop financing for investments in U.S. shipyards, naval vessel construction, maintenance, repair and overhaul services and commercial shipbuilding.
The policy-finance structure is intended to help companies manage the large capital requirements and financial risks associated with entering the U.S. market.
Financial Services Commission Vice Chairman Kwon Dae-young described the initiative as an opportunity for South Korea’s shipbuilding industry to demonstrate its capabilities in the global market.
“We will actively support the necessary financing through close cooperation among the newly established Korea-U.S. Strategic Investment Corporation, policy-finance institutions and private financial companies,” Kwon said.
Park Dong-il, deputy minister for industrial policy at the Ministry of Trade, Industry and Resources, said the Make American Shipbuilding Great Again initiative, or MASGA, represents the first strategic overseas expansion project in the history of South Korea’s shipbuilding industry.
Park said encouraging signs were emerging in the United States, including potential orders for South Korean companies.
He called on policy lenders to coordinate closely so shipbuilders can enter the U.S. market without delays.
“The signing ceremony is expected to provide initial momentum for the MASGA project and create a new opportunity for South Korea’s shipbuilding industry to advance,” Park said.
Shipbuilding companies also pledged to identify commercially viable projects with government financial support.
HD Hyundai Heavy Industries CEO Lee Sang-kyun said producing tangible results from the bilateral cooperation was the most important objective.
“This cooperation should develop into a system that simultaneously supports the growth of South Korea’s shipbuilding industry and the rebuilding of the U.S. shipbuilding base,” Lee said.
South Korean shipbuilders will identify investment opportunities that offer profitability and can be carried out effectively using their advanced technology, he said.
Lee also urged the government to prepare a broad range of support measures to help create a turning point in bilateral shipbuilding cooperation.
The government said it will use the agreement to begin full cooperation among the investment corporation, policy-finance institutions and shipbuilders.
It also plans to expand the Team Korea framework so small and midsize shipyards and marine equipment suppliers can participate in projects entering the U.S. market.
— Reported by Asia Today; translated by UPI
© Asia Today. Unauthorized reproduction or redistribution prohibited.
Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260625010008910
Polish Prime Minister Donald Tusk, center, European Commission President Ursula von der Leyen, left, European Council President Antonio Costa, second from right, and Ukrainian Prime Minister Yulia Svyrydenko, second from left, pose for a group photo at the opening session of the Ukraine Recovery Conference 2026 at the European Solidarity Centre in Gdansk, Poland, Thursday. Photo by Adam Warzawa/EPA
June 25 (UPI) — The European Union released $3.6 billion in funds of the Ukraine Support Loan for budget and defense needs, the bloc said Thursday.
The funds were released at the Ukraine Recovery Conference, where European Commission President Ursula Von der Leyen announced the funding, which is the first instalment of the new macro-financial assistance. The MFA is a segment of the Ukraine Support Loan, under which $102 billion will be offered to Ukraine in 2026 and 2027.
“As a country at war, Ukraine’s capaicty to defend its territory depends on the rapid availability of critical products in the required quantities and within very short timeframes,” a press release said. “The first instalment of the [$6.8] billion defense package to support drone procurement will be disbursed in the coming days.”
“This is indeed solidarity in action,” Von der Leyen said. “It shows Europe’s support for Ukraine is here to stay.”
The original plan in December was to use Russia’s frozen assets to fund the loan, but the Russian Central Bank sued a Belgian bank over the plan, so the EU had to find a new way to finance the loan.
Instead, they agreed to create the loan through joint debt. Hungary, Slovakia and the Czech Republic negotiated an exemption.
The payments are conditional on Kyiv’s reforms. If Ukraine reverses its ongoing fight against corruption, the EU could suspend the funds, Euro News reported.
The loan also requires Ukraine to buy weapons and ammunition made in Europe, with some exceptions depending on availability.
“Ukraine has the opportunity to analyze the situation on the battlefield and identify the range of products that they need, and then they have to inform us in the form of product schedules,” a Commission spokesperson told Euro News. “The priority remains to make purchases within the EU and Ukraine.”
“We continue to call on all our partners to maintain their support, because a strong and independent Ukraine is in all our interests,” Von der Leyen said Thursday. “Our ambition is not only to help Ukraine endure, it is also to help Ukraine grow and prosper as a free and European country.”
The United States is not expected to contribute funds to the loan.
WASHINGTON — The Pentagon has told senators it needs roughly $80 billion, mostly to cover the cost of the U.S. war against Iran, adding to what is already a sizable military spending boost being sought by President Trump.
Meanwhile, the Senate for the first time approved a war powers resolution Tuesday seeking to block U.S. military action against Iran, as lawmakers warily watch President Trump’s efforts to resolve a conflict that the administration launched on its own and now needs Congress to fund.
It was the 10th time the Senate has tried to stop the war, and the outcome, on a vote of 50-48, was a stunning turnaround from past efforts. Although the resolution is largely symbolic, and does not fully carry the force of law, it reflects the growing concerns from a number of Republican lawmakers in the House and Senate over the war and the deal Trump struck with Iran to end it. The House approved the resolution earlier this month.
The White House Office of Management and Budget has yet to make a formal request to Congress for more money for the war. But Defense Secretary Pete Hegseth has been making the rounds on Capitol Hill, including Monday evening. A top deputy Defense secretary told senators about the Iran funding request last week, according to two people familiar with the situation but not authorized to discuss it publicly.
The Wall Street Journal first reported on the developments.
The push for billions of dollars in Iran war funding comes at a fraught political moment. Lawmakers are not only skeptical of the deal Trump struck with Iran to bring an end to the war, but also wary of next steps. The White House has requested a remarkable $1.5 trillion for the Pentagon — a nearly 50% increase over the current fiscal year’s funding levels.
Senate Majority Leader John Thune said he’s expecting a supplemental spending request from the administration for the war, and when it arrives, “we’ll work through it and see where the votes are.”
“We need to make sure we’re doing everything we can to replenish, resupply a lot our munitions that have been depleted — not only just with what’s happening with Iran, but prior to that,” said Thune (R-S.D.).
Deputy Defense Secretary Stephen Feinberg spoke to several senators about the proposal in calls last week and he notified congressional committees that the $80-billion request had been sent to the Office of Management and Budget. The Pentagon did not immediately respond to a request for comment.
However, the funding package will almost certainly run into trouble from lawmakers who refuse to support Trump’s decision to go to war and are reluctant to give the Pentagon more money at a time of high costs of living for Americans at home.
“You’re spending families’ hard-earned tax dollars on a war that many strongly oppose,” Democratic Sen. Patty Murray of Washington told Hegseth in a hearing last month.
In addition to the Iran funding, Republicans hope to secure about $1.1 trillion through the regular appropriations process, which typically requires support from both parties for approval. Then, they hope to secure an additional $350 billion through a mostly party-line vote later this summer.
The amount being sought by the Pentagon is far higher than the $29-billion estimate of war costs that Hegseth gave Congress during his testimony last month. The bulk of that amount was related to replacing munitions and repairing equipment but also included operational costs to keep forces deployed. That estimate did not include the cost to repair or rebuild U.S. military sites damaged in the region.
It’s also far lower than the initial $200 billion the Pentagon floated as the costs at the start of the war. An early estimate put the cost of the first week of the war at $11.3 billion.
Sen. Brian Schatz of Hawaii, a member of Democratic party leadership, said he expects the actual price tag could be much higher than the $80 billion being proposed.
Schatz said he hasn’t done any counting of Democrats about whether there is support for an Iran-focused bill, “but I haven’t found anyone who wants to do this.”
But Republican Sen. Jim Banks of Indiana said, “To me it’s less about the war, it’s more about the stockpiles.”
Banks said, “I would sell it to my state as an investment in our defense industrial base, reshoring defense production to Indiana.”
Sen. Jack Reed of Rhode Island, the top Democrat on the Senate Armed Services Committee, said funding for an Iran supplemental can’t be done in isolation. It has to be done after lawmakers from both parties have agreed to a total spending amount for both defense and non-defense programs, “then the rest of this would follow pretty quickly,” Reed said.
And Sen. John Hoeven of North Dakota, a member of the Appropriations subcommittee on Defense, said he has been working with the administration to broaden the package to include funds for disaster aid for California, Hawaii and other states hard hit by fires and weather problems, as well as agricultural aid for farmers.
“I think that’s the kind of combination that could pass,” Hoeven said.
Hegseth declined to answer questions from reporters late Monday as he strode around the Capitol.
But on the issue of the cost of the war, Hegseth responded rhetorically during a Senate hearing last month, asking, “What is the cost of Iran obtaining a nuclear weapon?”
He acknowledged the president’s decision to confront the threat of a nuclear Iran “comes with cost — and we recognize that.”
Freking and Mascaro write for the Associated Press. AP writers Konstantin Toropin and Ben Finley contributed to this report.
LG Chem CEO Kim Dong-chun speaks during a town hall meeting at the company’s head office in Seoul on Monday. Photo by LG Chem
SEOUL, June 23 (UPI) — South Korea’s LG Chem said Tuesday it will invest nearly $10 billion over the next decade to foster futuristic industries powered by the artificial intelligence boom.
The Seoul-based company plans to spend $9.7 billion on research and development through 2035, concentrating on advanced materials for semiconductors, mobility, robotics and anticancer drugs.
LG Chem said that the initiative comes as profitability in its traditional petrochemical business dipped because of global oversupply and fierce competition.
Through the investment, the chemical giant vowed to achieve a double-digit operating profit margin by the end of the decade.
To complement its organic growth strategy, LG Chem said it will pursue external growth opportunities, including mergers and acquisitions. It recently established an organization dedicated to that goal.
LG Chem unveiled the long-term strategy during a town hall meeting Monday, where CEO Kim Dong-chun stressed the need to strengthen both existing businesses and future growth engines.
“While strengthening the competitiveness of our existing businesses, we will focus our capabilities on future growth pillars to leap forward as a technology-driven converting company,” Kim said.
LG Chem defines a “tech-driven converting company” as an enterprise that leverages its accumulated technological expertise to create high-value-added products and differentiated profit streams.
The share price of LG Chem plunged 9.75% on the Seoul bourse on Monday, while the benchmark KOSPI plummeted 9.99%. LG Chem is a major subsidiary of LG Group, whose businesses also include LG Electronics, LG Display and LG Uplus.
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SpaceX shares closed at $154.63 on Monday, down around 16% on the day. That leaves them within touching distance of the $150 at which the shares first changed hands when public trading opened, the level set once underwriters finished building the order book, though still some way above the $135 price at which the IPO itself was struck.
The slide has erased more than $600 billion (€524.2bn) in market value over three trading days, dragging the company down from a peak that had lifted it past Amazon and, fleetingly, Microsoft, in terms of market capitalisation.
Its valuation now sits just above $2 trillion (€1.74tn), below Taiwan Semiconductor Manufacturing Company (TSMC), making it the seventh most valuable company in the world.
The retreat unwinds a remarkable opening run.
After the open at around $150 on 12 June, shares climbed to almost $226 by 16 June, a gain of roughly two-thirds before the company had published a single set of results as a public firm.
Currently, SpaceX is trading over 30% lower than the intraday high of around $226 and only 3% higher than the opening price.
That rally always rested on a thin pool of freely traded shares and lofty expectations for its AI ambitions, leaving it exposed to a sharp reversal once sentiment turned.
The latest leg down on Monday coincided with SpaceX’s first move into the corporate debt market.
The company announced an inaugural offering of senior unsecured notes, with people familiar with the plans reportedly putting the target at around $20 billion (€17.4bn).
The proceeds are earmarked chiefly to repay a bridge loan taken on during its merger with Elon Musk’s AI venture xAI earlier this year, with the remainder going to general corporate purposes.
The debut bond sale follows the investment-grade credit ratings awarded last Friday by all three major agencies, Moody’s at Baa1, Fitch at BBB+ and S&P Global at BBB, which open the door to cheaper borrowing and a wider pool of institutional lenders.
In documents tied to the offering, SpaceX also disclosed a cash position of roughly $100.8 billion (€88bn) as of 19 June, much of it raised in the IPO, alongside $29.1 billion (€25.4bn) of long-term debt.
That mix of vast cash reserves and fresh borrowing so soon after a record flotation has unsettled some investors, who see the rapid fundraising as a sign of heavy spending ahead as SpaceX scales its AI and data centre plans.
Opting for debt rather than new shares does, however, spare existing shareholders further dilution, preserving their economic stake while the company funds its expansion.
Korea Hydro & Nuclear Power CEO Kim Hoe-chun (R4) inspects facilities at Doosan Skoda Power in Plzen on Thursday. He visited the Czech Republic to review progress on a project to build two nuclear reactors in the European country. Photo by KHNP
June 19 (UPI) — Korea Hydro & Nuclear Power, or KHNP, said Thursday that its CEO Kim Hoe-chun has traveled to the Czech Republic to review progress on the construction of two nuclear reactors in the European country.
The state-backed utility noted that Kim took part in a meeting of the Dukovany Steering Committee in Prague alongside South Korea’s Minister of Trade, Industry and Resources Kim Jung-kwan and Czech Deputy Prime Minister Karel Havlicek.
Kim’s visit is timed with the first anniversary of the signing of an $18 billion contract to build two 1,000-megawatt reactors in Dukovany, located around 120 miles southeast of the Czech capital.
Groundbreaking is targeted for 2029, with commercial completion expected by 2037. The South Korean consortium includes such industrial partners as Daewoo E&C and Doosan Enerbility.
The two sides also discussed ways to strengthen bilateral nuclear cooperation, while companies from the two countries signed an engineering support agreement related to the project, according to KHNP.
Kim also toured the manufacturing facilities of Doosan Skoda Power in Plzen, situated roughly 55 miles west of Prague. The Czech turbine manufacturer owned by the Doosan Group is expected to play a key role in the Dukovany program.
“The Dukovany project is a monumental endeavor that symbolizes the strategic partnership between South Korea and the Czech Republic,” Kim said in a statement.
“We will work closely with the Czech government, the project owner, local communities, and Czech companies to make this project a model for the safest and most successful nuclear power plant construction in the world,” he added.
Woody, Buzz Lightyear and Jessie will be back at the box office this weekend, delivering what could be the biggest film debut of the year.
Analysts expect the fifth installment of Disney/Pixar’s “Toy Story” franchise will pull in at least $150 million in the U.S. and Canada, with some predicting as much as $175 million — either of which would set a franchise record, topping the nearly $121-million opening of 2019’s “Toy Story 4.”
A strong showing for “Toy Story 5” will further fuel a recovery of the box office this year from the post-pandemic doldrums.
Domestic ticket sales are up over last year, and Roth Capital Partners forecasts the second quarter will climb 6.5% to $2.8 billion — a post-pandemic high.
“Toy Story 5” is the first of several family tentpoles this summer, ahead of Universal and Illumination’s “Minions & Monsters” and Disney’s live-action “Moana.”
“Right now we’re on pace for the best opening of the year,” said Daniel Loria, editorial director at Box Office Co. “This is a performer.”
The timing also is fortuitous for Walt Disney Co. at a moment when its other once-reliable franchises such as “Star Wars” and Marvel have faltered. The recent “Star Wars: The Mandalorian and Grogu” dropped sharply at the domestic box office after its late-May opening, bested by low-budget horror films “Backrooms” and “Obsession.”
“People love these characters from ‘Toy Story,’ ” said Paul Dergarabedian, head of marketplace trends at Comscore. “It’s just as appealing as ever.”
Indeed, across four films and 30 years, “Toy Story” has grossed more than $3 billion worldwide. It is the most-watched franchise on Disney+, with more than 2 billion hours streamed. Woody, Buzz Lightyear and Jessie have spawned 19 theme park rides, four themed lands, two hotels and roughly $1 billion a year in global retail sales.
The production budget for “Toy Story 5” is about $150 million to $200 million. A crew of about 300 people worked on the film at Pixar’s Emeryville, Calif., headquarters.
For Pixar, the reliance on “Toy Story” reflects a shift away from originals that used to be its lifeblood.
February’s “Hoppers” managed a respectable $372 million worldwide, but the surer money now comes from sequels.
“Inside Out 2” grossed nearly $1.7 billion in 2024, and both “Toy Story 4” and “Toy Story 3” crossed $1 billion globally.
Still, the franchise label is no guarantee: The 2022 spin-off “Lightyear” stalled at $226 million worldwide after straying from the formula, recasting Buzz as an actual sci-fi hero — voiced by Chris Evans rather than Tim Allen — and sidelining Woody and the rest of the gang.
“Toy Story 5” stays closer to home but wades into new territory: the explosion of tech in everyday life. The toys must contend with Lilypad, a tablet that captures the attention of their owner, Bonnie — a premise that grew out of a tech-toy character originally written for “Toy Story 4” and scrapped for time. Disney is betting the underlying tension is universal.
“What parent hasn’t had anxiety over tech versus toys with their kids?” said Andrew Cripps, head of theatrical distribution for Walt Disney Studios.
Disney is betting that this universal concern will drive audiences to the film.
The fifth installment also arrives with an unusually high-wattage assist: Taylor Swift wrote and performed an original song, “I Knew It, I Knew You,” and made a surprise appearance at last week’s premiere, performing it after the credits before joining longtime franchise composer Randy Newman for “You’ve Got a Friend in Me.”
“It means the world to me to be a small part of the universe of these films,” Swift told the crowd.
The expected blockbuster opening for “Toy Story 5” would be a full-circle moment for the long-standing franchise; Pixar animators in 1995 hadn’t even considered the possibility of a sequel while working on the first “Toy Story.”
“There was so much learned on that first film, specifically our iterative process,” Pixar Chief Creative Officer Pete Docter said in a phone call last week from Madrid, shortly before the film’s Spain premiere. “A lot of things that we discovered having worked on that film have just continued to inform every movie that we make.”
“Toy Story” revolutionized the movie business as the first computer-animated feature film. But its enduring appeal was in the bonds between the characters, Docter said.
Docter, who supervised animators and helped with character design and writing on the original “Toy Story,” added: “It certainly had some new technology, but it was really up to the story and characters to carry the audience.”
The franchise’s longevity is also due to its ability to capture generations of fans.
“Having parents now that say, ‘I grew up with “Toy Story,” and now I’m showing my kids,’ has been really gratifying,” Docter said.
Fox Corporation has agreed to acquire the streaming platform Roku Inc. in a deal valued at $22 billion, the companies announced Monday.
The deal will combine the Murdoch family’s media assets, which include its news, sports and broadcast channels, with the San Jose-based streaming platform that reaches 100 million consumers globally.
The acquisition would give Fox access to consumer households at a time when the traditional pay-TV universe continues its slow decline as viewers move away from cable and satellite services to video streaming. Fox already owns the free ad-supported streaming service Tubi, which recently became profitable.
“This is a defining moment for Fox and a natural extension of the deliberate and focused strategy we have been executing for nearly a decade,” Fox Corp. Executive Chair Lachlan Murdoch said in a statement.
By owning Roku, Fox gets access to data from the 100 million households connected to the service, which can be used to better target audiences with advertising. The combination would also make Fox less dependent on traditional pay TV platforms for the distribution of its channels.
According to Nielsen data, 21% of all internet-connected TV viewing comes through Roku. The Roku Channel, which carries 500 ad-supported streaming networks, accounts for 3% of all TV viewing.
An image of a Roku branded TV.
(Roku)
Research firm Emarketer projects ad revenues of $3.57 billion for Roku this year, up 19% from last year.
Lloyd Grief, chief executive of the Los Angeles investment bank Greif & Co., said Roku would have been challenged to compete against far better capitalized competitors in the streaming business and that a sale was “inevitable.”
For Fox, the proposed deal makes them a larger player in the digital advertising business. Emarketer senior analyst Ross Benes said the Roku business will “more than double,” the company’s revenues in that area.
“It remains to be seen how well the combination of a digitally innovating streaming company will mesh with a media conglomerate rooted in legacy assets,” Benes said.. “But the strategy makes sense and it jibes with the continual consolidation that’s occurring in streaming.”
Fox sold its TV and movie production assets to Walt Disney Co. in 2018. Rather than invest heavily in scripted entertainment to compete with emerging streaming companies, Fox decided to concentrate on sports and news.
The Roku deal will put Fox deeper into the distribution network. Over its history, the company has held stakes in satellite TV provider DirecTV and Sky TV.
The companies said they are committed to keeping Roku as a “partner-friendly” platform that carries program services that compete with Fox. Brian Wieser, a consultant at Madison and Wall said that might require some convincing.
“Other content owners may still need Roku’s distribution, but they may be less comfortable with the idea that one of their competitors controls an increasingly important part of the streaming interface,” Wieser wrote in his note on the proposed deal.
Roku shareholders will receive a combination of cash and Fox Corporation stock valued at $160 a share.
The companies say they expect cost savings of $400 million in the combined entity.
Roku was founded in 2002 by Anthony Wood, a British digital entrepreneur. The company launched a streaming device, the Roku player, in 2008. Within six years, the company sold more than 10 million devices, as the popularity of streaming video rapidly grew.
Fox Corp. shares were down 10 to 15% on news of the deal, trading around $55.57 Monday morning. Roku shares were down slightly to $142.
Times staff writer Wendy Lee contributed to this report.
ALEXANDRIA, Va. — A federal judge agreed on Friday to extend a court-ordered block on the Trump administration’s creation and operation of a $1.8 billion settlement fund for compensating people who claim to be victims of a weaponized government.
Earlier this month, acting Atty. Gen. Todd Blanche told Congress that the government is scrapping its plans for the fund in the face of a fierce bipartisan backlash. Government attorneys have argued that lawsuits challenging the fund are now moot, but plaintiffs’ attorneys aren’t satisfied by Blanche’s assurances that the fund won’t move forward.
Neither was U.S. District Judge Leonie Brinkema, who ruled that the “Anti-Weaponization Fund” will remain blocked until further notice from the court.
“The (government’s) mootness argument, in my view, doesn’t go anywhere,” the judge said.
President Trump, meanwhile, has not publicly and unequivocally endorsed its cancellation. He has continued to express support for the fund in remarks to reporters.
Brinkema gave the parties a week to negotiate an agreement for Blanche to submit a sworn declaration that the administration won’t revive the fund.
Brinkema previously agreed to temporarily block the administration from proceeding with the fund for at least two weeks. Her May 29 order was due to expire on Friday.
Trump’s Republican administration created the fund to resolve his lawsuit against the Internal Revenue Service over the leak of his tax returns.
Plaintiffs who sued to block fund payouts argue that the government can’t legally divert taxpayer money into what they argue is a slush fund for compensating Trump’s allies.
In a separate case on Wednesday, a different judge in Washington, D.C., rejected a government watchdog’s parallel request for a court order temporarily blocking the Trump administration from forging ahead with the fund. U.S. District Judge Richard Leon said he accepts Blanche’s representation that the fund is now moot.
Leon had asked Justice Department attorney Andrew Block why Blanche doesn’t formally rescind his May 18 order establishing the fund. Block said he didn’t know. He still didn’t have an answer to that question when Brinkema posed it two days later.
“It’s a huge gap in the record that we don’t have an answer to that question,” the judge said.
In the Virginia case, attorneys from the legal advocacy group Democracy Forward asked for an order to temporarily suspend the fund’s implementation and stop the Trump administration from disbursing any payouts from it.
The plaintiffs include a fired prosecutor and a college professor acquitted of assaulting federal agents at a protest.
Even before the administration said it was dropping the fund, the Justice Department did not form the five-member commission that would decide on payout criteria, so no money was paid out nor claims accepted.
Many of the Republican president’s allies are opposed to compensating rioters who stormed the U.S. Capitol on Jan. 6, 2021. In May, however, Blanche wouldn’t rule out the possibility that Capitol rioters who engaged could be eligible to apply for payments from the fund.
Trump issued mass pardons to Capitol rioters on his first day back in the White House last year. More than 1,500 people were charged in the Jan. 6 attack before Trump erased every case with his sweeping act of clemency.
Brinkema was nominated to the bench by President Clinton, a Democrat.
Kunzelman writes for the Associated Press.
Eurasian Economic Union (EAEU) countries are moving towards deeper economic integration through digitisation and AI, as leaders of the bloc met in Astana for a two-day summit.
During the high-level talks, member states discussed creating a unified digital environment to build a seamless market across a shared economic space of more than 20 million square kilometres.
Delegations focused on trade, joint projects and the development of shared digital tools and AI systems designed to strengthen cooperation and reduce fragmentation across the bloc.
Last year, trade within the union more than doubled, while turnover with third countries rose by 72%, while around 90% of settlements are now conducted in national currencies, as EAEU states also mull a single transit system.
With digitisation driving developments across the union, Kazakhstan’s President Kassym-Jomart Tokayev said trade turnover between EAEU members could increase by around 6%, exceeding €85 billion this year, compared with €80 billion last year.
He added that GDP growth across EAEU countries is projected at around 2.5% for 2026–2027.
Now in its 12th year, the EAEU functions as a single integrated market and free trade zone for its five members – Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia.
The bloc already has agreements in place with a number of countries including Serbia, Vietnam, the UAE, Mongolia and Indonesia. China remains the bloc’s key partner, accounting for around one-third of external trade.
Kazakhstan’s Tokayev said that during its chairmanship of the EAEU, the country has proposed the practical use of AI to help implement the bloc’s so-called four freedoms, with the aim of strengthening the competitiveness of member states.
Member states also proposed developing common principles for the responsible use of AI, as well as shared computing capacity and joint model development.
Meanwhile, Russia proposed a high-level AI get-together next year to further cooperation on domestic AI models and connecting its IT and energy infrastructure, according to Russian President Vladimir Putin.
On the ground, pilot projects are already being tested at the EAEU level.
In Kazakhstan, several AI-powered digital assistants have been developed by both government agencies and startups to help citizens navigate legal and regulatory systems more easily.
According to Deputy Minister of Artificial Intelligence and Digital Development Dmitry Mun, these AI legal assistants are designed to simplify legislation, reduce bureaucracy, and make regulatory systems more accessible for citizens and businesses.
Some of these tools are now being tested to streamline processes across member states.
Around 85% of goods travelling from China to Europe are routed through the Middle Corridor, according to officials.
Artificial intelligence is increasingly being deployed alongside the TDN and the Digital Transport Corridor along the Trans-Caspian International Transport Route. Together, these measures are expected to increase non-commodity exports by around 30% over the next two years.
Kazakhstan’s Minister of Trade and Integration Arman Shakkaliyev said the country also aims to leverage major transport routes, including the Middle Corridor and the North–South Corridor, to build a fully integrated logistics ecosystem.
The goal, he said, is to position Kazakhstan as a key regional hub where transport routes converge and large export flows are consolidated.
The ambition is to develop a fully functioning system by 2030, with cargo volumes reaching around 10 million tonnes. Work is already under way, including railway modernisation and new infrastructure development.
The summit followed Putin’s state visit to Kazakhstan, during which the two countries signed seven key pillars of bilateral cooperation, along with a broader package of agreements covering energy, transport, finance, education and industrial development.
Russia remains Kazakhstan’s largest investor, with nearly €25 billion already invested and plans to increase that figure further. It is also building Kazakhstan’s first nuclear power plant, valued at around €14 billion.
Putin said the plant would account for around 20% of Kazakhstan’s electricity consumption, adding that financing conditions for such projects are in line with international practice.
He noted that the project supports Russian industrial capacity through equipment orders and long-term maintenance contracts, while also strengthening cooperation between the two countries in uranium and nuclear technology.
For Kazakhstan, officials say the project represents both energy security and a step towards moving beyond raw-material exports to high-value technological cooperation.
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Oura, the Finnish company that created the ring-shaped health tracker worn by millions worldwide, has confidentially submitted draft paperwork to the US Securities and Exchange Commission for a proposed IPO, according to several reports.
While the number of shares and the expected price range remain undisclosed, the company had a recent funding round in the fall of 2025 that valued the business at around $11 billion (€9.5bn), more than double the $5 billion (€4.3bn) valuation it earned in a previous round in 2024.
According to CEO Tom Hale, more than 5.5 million Oura rings had been sold up to the end of last year’s third quarter.
At the time, Hale also projected that the company would reach $2 billion (€1.7bn) in annual revenue in 2026 compared with $500 million (€430mn) just two years ago.
The move towards an IPO puts a European wearable brand on Wall Street’s radar at a time when investor appetite for consumer health technology appears to be returning.
Oura has become a standout name in the fast-growing smart ring category, competing against smartwatch giants such as Apple, Garmin and Samsung, while carving out a niche with a distinct piece of hardware that some consumers find less obtrusive.
Over the past two years, the company has expanded aggressively into software, subscriptions and AI-powered health analysis. Its wearable platform now focuses on long-term health signals including sleep, readiness, heart rate, stress and recovery.
More recently, Oura has pushed further into women’s health and AI-based personal coaching, including tools designed to interpret physiological data and provide tailored wellness recommendations.
Analysts see that transition from device maker to subscripton-based health platform as central to its IPO pitch as the firm is currently on pace to surpass 5 million paid members.
The IPO filing marks a significant moment for one of Europe’s most prominent health tech success stories.
Founded in Finland and developed around research into sleep, recovery and biometric monitoring, Oura has grown from a Nordic hardware start-up into a global player in the wearable market.
However, for Europe’s start-up ecosystem, Oura’s planned listing carries broader significance.
While its roots and design philosophy are deeply tied to Finland, the company recently transitioned to a US-based parent company, named Oura Inc. and headquartered in San Francisco, to access American venture capital while keeping its European operations.
Its decision to prepare for a US listing rather than a European one reflects a wider pattern among high-growth European tech firms seeking deeper capital markets and greater visibility among global investors.
The planned flotation arrives during renewed debate over whether Europe is losing some of its most successful technology companies to US exchanges.
Oura joins a growing list of European-founded businesses choosing Wall Street as their route to public markets, drawn by scale, liquidity and stronger investor familiarity with consumer technology.
The company’s IPO will also be seen as a test of investor sentiment towards wearable technology after a mixed few years for the sector.
Unlike smartwatches, smart rings remain a relatively young category, though interest has accelerated rapidly.
Oura is widely viewed as the segment’s category leader and its public debut could offer a clearer benchmark for how markets value next-generation health hardware combined with software subscriptions and AI services.
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NextEra Energy (NEE) is in talks to acquire Dominion Energy (D) in a mostly stock transaction that could value Dominion at roughly $66 billion, Bloomberg News reported Sunday, citing people familiar with the matter. If completed, the merger would become the largest
Vice President JD Vance said Wednesday that the Trump administration is deferring $1.3 billion in Medicaid reimbursements to California over concerns the state is allowing “fraudsters” to drive up costs to taxpayers, including by pushing unnecessary medications on unsuspecting patients.
“There are California taxpayers and American taxpayers who are being defrauded because California isn’t taking its program seriously. But also, you have people who’ve been prescribed medications that they don’t even need,” Vance said. “Sometimes they’ve had drugs put into their bodies that they don’t need because fraudsters have actually encouraged false prescriptions and false administration and medications.”
Vance, standing alongside Dr. Mehmet Oz, the administrator for the Centers for Medicare and Medicaid Services, said the administration is also sending letters to all 50 states informing them that if they do not “effectively and aggressively prosecute Medicaid fraud in their states,” they will see federal funding cut off as well.
“We want California to get serious about this fraud,” said Vance, who President Trump named his “fraud czar” last month.
Oz called out what he said was widespread fraud in hospice services and similar in-home care programs nationally — and particularly in the Los Angeles region — and announced a six-month moratorium on new Medicare enrollment for hospices and home health agencies.
“A third of all these programs in the entire country are in Los Angeles. Ask yourself, how is that possible? It’s not,” Oz said. “They’re not that many people dying in Los Angeles. We’re not talking about California, just Los Angeles.”
He said he and others in the administration determined that “at least half of the hospices, in the entire area around Los Angeles, are fraudulent,” and had shut down 800 of them that last year had “charged the federal taxpayer $1.4 billion,” which “will no longer be paid.” That is a major increase from the 450 providers the administration said it had suspended as of last month.
The announcement was the latest attempt by the Trump administration to highlight and rein in fraud in federal healthcare benefits programs, particularly in blue states. The actions were met with immediate push back from California officials.
“We hate fraud. But that’s NOT what this is,” Gov. Gavin Newsom’s office posted on the social media site X. “Vance and Oz are attacking programs that keep seniors and people with disabilities OUT of nursing homes. Pretty sick.”
Newsom’s office said that the growth of In-Home Supportive Services placements in California was “simple,” and due to California “keeping more people OUT of far more expensive nursing homes!”
Such services cover assistants who help people with daily tasks such as bathing, laundry or cooking; provide needed care such as injections under the direction of a medical professional; and accompany them to and from doctor’s appointments. A 2020 report by the California state auditor found that nearly three-quarters of IHSS caregivers assist a family member.
Newsom’s office wrote IHSS care costs $30,000 a year, while nursing home care costs $137,000 a year. “SAVING TAXPAYERS: $107K per person,” it wrote.
California Atty. Gen. Rob Bonta also criticized the administration’s moves.
“Once again, California appears to be targeted solely for political reasons,” Bonta said. “The Trump administration is planning to defer over $1 billion in Medicaid funding for vital programs that helps seniors and people with disabilities remain safely in their homes.
“My team is carefully reviewing all available information. We have not hesitated to challenge unlawful actions by the Trump administration, and we will continue to act whenever Californians’ rights or access to critical services are threatened,” he said.
Democratic Sen. Alex Padilla also lashed out at the Trump administration.
“The Trump Administration is attacking California over claims that they can’t back up,” Padilla wrote on social media. “Let’s be real, this isn’t about fraud — it’s about punishing a state that didn’t vote for him. Political retribution plain and simple.”
Fraud in California’s hospice industry has been a problem for years.
Authorities in the state promised to crack down on the issue after a Times investigation in late 2020 revealed that unscrupulous providers were billing Medicare for hospice services and equipment for patients who were not actually dying — with the hospice industry in the state exploding in size.
California’s Medicaid program, known as Medi-Cal, is expected to cost about $222 billion for the budget year starting July 1, including both state and federal funding. Roughly 15 million Californians, more than a third of the state, are on Medi-Cal.
Vance, a potential 2028 presidential hopeful, has taken up his work as “fraud czar” with vigor, traveling around the country to drive home the idea that the Trump administration is working diligently to bring down healthcare costs by addressing waste, fraud and abuse that is rampant across the system.
He has said that waste and abuse is particularly prevalent in Democratic-led states such as California, New York and Minnesota.
“We have red states and blue states that go after fraud aggressively, but we also, unfortunately, have some states, mostly blue states, unfortunately, that do not take Medicaid fraud very seriously,” he said Wednesday.
Vance specifically threatened to cut off what he said is billions in federal funding for state-run fraud control units that are meant to prosecute people who abuse the system, but which he said aren’t doing the work. “This is a tool that we want the states to use, but unfortunately, a lot of states aren’t using these tools at all,” he said.
The focus on fraud comes against a backdrop of criticisms that other policy measures pushed by the administration have driven healthcare costs up or made it harder for people to access healthcare — including cuts to Obamacare subsidies and new work requirements in Medicaid, which are expected to strain hospitals around the country and led to millions of people losing healthcare coverage.
Democrats and Republicans have argued over who is to blame for rising healthcare costs, and Vance and Oz have clashed with California leaders before.
In January, Newsom filed a civil rights complaint against Oz after he posted a video accusing Armenian crime groups of carrying out widespread healthcare fraud in Los Angeles. In the video, Oz was shown driving around Van Nuys, saying about $3.5 billion worth of Medicare fraud had been perpetrated by hospice and home care businesses — and “run, quite a bit of it, by the Russian Armenian mafia.”
Newsom called Oz’s claims “baseless and racist.”
The administration previously launched investigations into potential healthcare fraud in at least five states — California, Florida, Maine, Minnesota and New York — and halted some $243 million in Medicaid payments to Minnesota over fraud concerns.
The Centers for Medicare & Medicaid Services has also acknowledged using errant figures to justify a fraud probe in New York, deepening concerns in the administration’s methods for identifying problematic activity.
Vance said the deferral of funds to California and the letters warning other states to get serious is not about political retribution, but a wake up call. He said the Trump administration wants to help states root out fraud and abuse, including with new technologies — but can’t do so if they are not “willing to help themselves” first.
“We don’t want to turn off any money. What we want to do is ensure that people are taking fraud seriously. We want to protect Medicaid, we want to protect Medicare,” Vance said. “But we can’t do that if the states that are administering those programs are allowing those programs to be fleeced by fraudsters.”
The Associated Press contributed to this article.
JENNIFER Lopez has joined Spotify’s billionaire club for the first time.
Her 2011 dance hit On The Floor, with rapper Pitbull, has now clocked up more than a billion streams.
The US singer, 56, in a celebratory mood at a Netflix comedy event in LA on Sunday night thanked fans online, adding: “Thank you JLovers … On The Floor is one billion strong on Spotify because of you!
“Let’s keep dancing.”
It is the first of J-Lo’s songs to ever achieve the feat, while it becomes Pitbull’s sixth track to make the grade.
However she has a way to go before overhauling Spotify’s most-played track — The Weeknd’s 2020 classic Blinding Lights, on 5.4billion streams.
Released as the lead single from her seventh album Love?, the song marked a major comeback for the star following a quieter period in her music career.
We recently revealed how the star got down and dirty with her co-star Brett Goldstein in a first look at their brand new movie, Office Romance.
A trailer for the raunchy Netflix rom-com has dropped with J Lo serving up some of her sauciest on-screen scenes to date.
The hotly anticipated flick is due to release next month with Jennifer and her co-star Brett having heaps of passion as a typical work love story blooms.
WASHINGTON — Senate Republicans have added $1 billion in White House security upgrades to legislation that would fund immigration enforcement agencies, a proposed boost for President Trump’s ballroom project after a man was charged with trying to assassinate him at the White House Correspondents’ Assn. dinner last week.
The GOP bill released late Monday would designate the money for the U.S. Secret Service for “security adjustments and upgrades” related to the ballroom project, which Trump and Republicans have been pushing since Cole Tomas Allen allegedly stormed the April 25 media dinner at the Washington Hilton with guns and knives. The legislation says the money would support enhancements to the ballroom project, “including above-ground and below-ground security features,” but also specifies that the money may not be used for non-security elements.
White House spokesperson Davis Ingle praised Republicans for including the money for the “long overdue” project, saying it would “provide the United States Secret Service with the resources they need to fully and completely harden the White House complex, in addition to the many other critical missions for the USSS.”
The money is part of a larger bill to pay for Immigration and Customs Enforcement and Border Patrol, as Democrats have been blocking funds for both agencies since mid-February. Congress passed bipartisan legislation to fund the rest of the Homeland Security Department on April 30 after a record-long shutdown, but Republicans are using a partisan budget maneuver to push through the ICE and Border Patrol dollars on their own. The House has not released its bill yet, but the Senate is expected to start voting on its version of the legislation next week.
It is unclear exactly how the $1 billion would be used, and the amount far exceeds the proposed $400 million for construction of the ballroom. The White House has said in court documents that the East Wing project would be “heavily fortified,” including bomb shelters, military installations and a medical facility underneath the ballroom. Trump has said it should include bulletproof glass and be able to repel drone attacks.
The National Trust for Historic Preservation has sued to block construction of the project, but a federal appeals court said last month that it can continue in the meantime.
The White House has said that private money would pay for the construction but public money would be used for security measures. Some Republicans have suggested that public money pay for all of it, arguing the security breach at the dinner shows the president needs a secure place to host events.
“It would be insane” to hold the dinner at a hotel again, said Republican Sen. Lindsey Graham of South Carolina, who introduced a bill to pay for the ballroom’s construction with Sen. Katie Britt, R-Ala.
Democrats have said they will oppose any efforts to pay for the ballroom.
“While Americans are struggling to make ends meet as a result of President Trump’s failed policies, Republicans are focused on providing tens of billions of dollars for the President’s vanity ballroom project and cruel mass deportation campaign,” said Illinois Sen. Dick Durbin, the top Democrat on the Senate Judiciary Committee, which oversees the U.S. Secret Service.
Jalonick writes for the Associated Press. AP writer Darlene Superville contributed to this report.
WASHINGTON — Los Angeles Mayor Karen Bass and L.A. County Supervisor Kathryn Barger met privately with President Trump and administration officials Wednesday to press for federal support and yet-unpaid wildfire recovery funding as the region continues to rebuild from the 2025 fires.
“This afternoon we met with President Trump and Administration officials to advocate for families who lost everything,” Bass and Barger said in a statement. “We had a very positive discussion about FEMA and other rebuilding funds as well as the support of the President to continue joining us in pressuring the insurance companies to pay what they owe — and for the big banks to step up to ease the financial pressure on L.A. families.”
Barger said the two leaders had a “high-level discussion” with the president in the Oval Office, sharing stories about what fire survivors are experiencing day to day. She added that “we left details behind with the President,” but did not specify whether Trump made any funding or policy promises during the meeting.
“First and foremost, today’s meeting was to thank the President for his initial support of infusing federal resources to expedite debris removal, as well as his recent tweet about insurance companies, which have already proven fruitful,” she said in a statement provided to The Times.
Bass was similarly reserved about the discussions, telling reporters that “we will follow up with the details,” but signaled progress is being made on federal support.
“I think what’s important is that we certainly got the president’s support in terms of, you know, what is needed, and then the appropriate people were in the room for us to follow up. And that was Russ Vought, who is the head of the Office of Management and budget,” Bass told KNX on Wednesday.
The meeting comes on the heels of a yearlong standoff between California leaders and the Trump administration over wildfire recovery funding, disaster response and whether the federal government should have a say in local rebuilding permitting.
California leaders, led by Gov. Gavin Newsom, have accused the Trump administration of withholding billions in critical wildfire aid, prompting a lawsuit over stalled recovery funds. Officials allege political bias in the delay of billions of dollars from the Federal Emergency Management Agency.
Newsom visited Washington in December. When he made his rounds on Capitol Hill, he met with five lawmakers, including three who serve on the Senate and House appropriations committees, to renew calls for $33.9 billion in federal aid for Los Angeles County fire recovery.
But the governor said he was denied a meeting with FEMA and would not say whether he had attempted to meet with Trump to discuss the issue.
Bass, meanwhile, appears to have found a path to the president on a subject that has been paramount for her community.
The fruitful meeting comes after Trump lobbed insults at the mayor at a news conference earlier this year, where he called her “incompetent” for how she handled last year’s wildfire recovery efforts. He alleged that under Bass’ leadership, the city’s delay in issuing local building permits will take years when it should have taken “two or three days.”
California officials, including Newsom, have urged the Trump administration to send Congress a formal request for the $33.9 billion in recovery aid needed to rebuild homes, schools, utilities and other critical infrastructure destroyed or damaged when the fires tore through neighborhoods more than 15 months ago.
What Bass and Barger’s meeting with the president ultimately produces remains to be seen.
The billions in recovery aid have not yet materialized, but the meeting could potentially give those discussions new momentum.
The White House did not immediately respond to a request seeking comment about the meeting.
Earlier this month, Trump criticized insurance provider State Farm on Truth Social for its handling of the devastating Los Angeles County wildfires. He accused the insurance giant of abandoning its policyholders when tragedy struck.
“It was brought to my attention that the Insurance Companies, in particular, State Farm, have been absolutely horrible to people that have been paying them large Premiums for years, only to find that when tragedy struck, these horrendous Companies were not there to help!” Trump wrote.
But the rebuke didn’t come out of the blue. It stemmed from a controversial February visit to Los Angeles by Trump administration officials.
Trump tapped Environmental Protection Agency Administrator Lee Zeldin in an effort to strip California state and local governments of their authority to permit the rebuilding of homes destroyed in the Eaton and Palisades fires.
Within the week, Zeldin was in Los Angeles, bashing Newsom and Los Angeles officials at a roundtable with fire victims and reporters, saying that residents were suffering from “bureaucratic, red tape delays and incompetency” and that leadership was “denying them … the ability to rebuild their lives”.
During the trip, officials heard direct complaints from local leaders and fire victims about insurers being slow, restrictive and insufficient with their claim payouts.
After these meetings, Trump directed Zeldin to investigate the insurers’ responses. State Farm, facing roughly $7 billion in fire-related claims, is also under formal investigation by California’s insurance commissioner over its handling of the crisis.
Despite tensions with the administration, Bass and Barger appeared confident that progress was being made on the insurance and funding issues.
“Our job is to fight for our communities,” their joint statement concluded. “When it comes to this recovery, our federal partners are essential, and we are grateful for the support of the President.”
