A federal judge in New York has temporarily blocked the Trump administration’s move to freeze $10 billion in child-care funds in five Democrat-led states including California.
The ruling Friday afternoon capped a tumultuous stretch that began earlier this week when the U.S. Department of Health and Human Services told California officials and those in Colorado, Illinois, Minnesota and New York that it would freeze federal funding over fraud concerns.
On Thursday the states sued the administration in federal court in Manhattan. The states sought a temporary restraining order, asking the court to block the funding freeze and the administration’s demands for large volumes of administrative data.
An attorney for the states argued Friday morning that there was an immediate need for funding — and that withholding it would cause chaos by depriving families of their ability to pay for child care, and would harm child-care providers who would lose income.
In a brief ruling, Judge Arun Subramanian said that “good cause has been shown for the issuance of a temporary restraining order.”
The White House did not immediately respond to a request for comment.
The federal government’s effort has been viewed as a broad attack on social services in California, and jolted tens of thousands of working families and the state’s child-care industry. Providers told The Times that the funding freeze could imperil child-care centers, many of which operate on slim margins.
“The underscoring issue is that child care and these other federally funded social services programs are major family supports,” said Nina Buthee, executive director of EveryChild California. “They are essential infrastructure that our communities need and depend on, and should not be political tools. So the fact that this judge went in and blocked this very dramatic freeze, I think is only a good thing.”
In a trio of Jan. 6 letters addressed to Gov. Gavin Newsom, the U.S. Department of Health and Human Services said it was concerned there had been “potential for extensive and systemic fraud” in child care and other social services programs that rely on federal funding, and had “reason to believe” that the state was “illicitly providing illegal aliens” with benefits.
The letters did not provide evidence to support the claims. State officials have said the suggestions of fraud are unsubstantiated.
Newsom has said he welcomes any fraud investigations the federal government might conduct, but said cutting off funding hurts families who rely on the aid. According to the state Legislative Analyst’s Office, about $1.4 billion in federal child-care funding was frozen per the letters from Health and Human Services.
“You want to support families? You believe in families? Then you believe in supporting child care and child-care workers in the workforce,” Newsom told MS NOW.
After Subramanian issued the ruling, Newsom’s press office said on X that “the feds went ghost-hunting for widespread ‘fraud’ (with no evidence) — and ended up trying to rip child care and food from kids.”
“It took a federal judge less than 24 hours to shut down Trump’s politically motivated child care cuts in California,” the account posted.
In instituting the freeze, Health and Human Services had said it would review how the federal money had been used by the state, and was restricting access to additional money amid its inquiries. The federal government asked for various data, including attendance documentation for child care. It also demanded beefed-up fiscal accountability requirements.
“Again and again, President Trump has shown a willingness to throw vulnerable children, seniors, and families under the bus if he thinks it will advance his vendetta against Democratic-led states,” Bonta said in a statement following the ruling. “Cutting funding for childcare and other family assistance is cruel, reckless, and most importantly, illegal.”
For Laura Pryor, research director at the California Budget & Policy Center, it is “a sigh of relief.”
HOME Alone star Daniel Stern has been cited for allegedly soliciting a prostitute at a hotel.
The actor who is best known for playing Sticky Bandit (formerly Wet Bandit) Marv in the iconic Christmas films alongside Macaulay Culkin and Joe Pesci was allegedly busted by cops in Camarillo, California last month.
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Daniel Stern has been cited for allegedly soliciting a prostitute in a hotel in CaliforniaCredit: GettyStern is best known for playing Marv in the Home Alone moviesCredit: Alamy
Stern, 68, was ticketed on December 10, a law enforcement source from Ventura County told TMZ.
He was not arrested but soliciting a prostitute in California is a misdemeanour.
Those who are convicted of such an offense in the Golden State can get up to six months behind bars or a $1,000 fine.
Neither Stern nor his representatives have issued comment about the citation.
The father-of-three has been married to his wife Laure Mattos since 1980 and has ditched Hollywood to focus on his art.
He lives on a ranch in Ventura where he sculpts and raises cattle.
On Christmas Eve he told People that he has been asked by the owners of the Home Alone house to create a sculpture of one of his iconic scenes.
“I got a call from the people who own the Home Alone house,” he said.
“And I’m a sculptor [and] they asked if if I would do a sculpture for the house. So I’m creating a sculpture of me and the spider.”
Back in October it was revealed by TMZ that he had been hospitalized after suffering an unknown medical emergency, but was quickly released and said to be “doing well”.
SACRAMENTO — California and its state-funded programs are heading into a period of volatile fiscal uncertainty, driven largely by events in Washington and on Wall Street.
Gov. Gavin Newsom’s budget chief warned Friday that surging revenues tied to the artificial intelligence boom are being offset by rising costs and federal funding cuts. The result: a projected $3-billion state deficit for the next fiscal year despite no major new spending initiatives.
The Newsom administration on Friday released its proposed $348.9-billion budget for the fiscal year that begins July 1, formally launching negotiations with the Legislature over spending priorities and policy goals.
“This budget reflects both confidence and caution,” Newsom said in a statement. “California’s economy is strong, revenues are outperforming expectations, and our fiscal position is stable because of years of prudent fiscal management — but we remain disciplined and focused on sustaining progress, not overextending it.”
Newsom’s proposed budget did not include funding to backfill the massive cuts to Medicaid and other public assistance programs by President Trump and the Republican-led Congress, changes expected to lead to millions of low-income Californians losing healthcare coverage and other benefits.
“If the state doesn’t step up, communities across California will crumble,” California State Assn. of Counties CEO Graham Knaus said in a statement.
The governor is expected to revise the plan in May using updated revenue projections after the income tax filing deadline, with lawmakers required to approve a final budget by June 15.
Newsom did not attend the budget presentation Friday, which was out of the ordinary, instead opting to have California Director of Finance Joe Stephenshaw field questions about the governor’s spending plan.
“Without having significant increases of spending, there also are no significant reductions or cuts to programs in the budget,” Stephenshaw said, noting that the proposal is a work in progress.
California has an unusually volatile revenue system — one that relies heavily on personal income taxes from high-earning residents whose capital gains rise and fall sharply with the stock market.
Entering state budget negotiations, many expected to see significant belt tightening after the nonpartisan Legislative Analyst’s Office warned in November that California faces a nearly $18-billion budget shortfall. The governor’s office and Department of Finance does not always agree, or use, the LAO’s estimates.
On Friday, the Newsom administration said it is projecting a much smaller deficit — about $3 billion — after assuming higher revenues over the next three fiscal years than were forecast last year. The gap between the governor’s estimate and the LAO’s projection largely reflects differing assumptions about risk: The LAO factored in the possibility of a major stock-market downturn.
SACRAMENTO — Gov. Gavin Newsom on Thursday unveiled a sweeping proposal to overhaul how California’s education system is governed, calling for structural changes that he said would shift oversight of the Department of Education and redefine the role of the state’s elected schools chief.
The proposal, which is part of Newsom’s state budget plan that will be released Friday, would unify the policymaking State Board of Education with the department, which is responsible for carrying out those policies. The governor said the change would better align education efforts from early childhood through college.
“California can no longer postpone reforms that have been recommended regularly for a century,” Newsom said in a statement. “These critical reforms will bring greater accountability, clarity, and coherence to how we serve our students and schools.”
Few details were provided about how the role of the state superintendent of public instruction would change, beyond a greater focus on fostering coordination and aligning education policy.
The changes would require approval from state lawmakers, who will be in the state Capitol on Thursday for Newsom’s last State of the State speech in his final year as governor.
The proposal would implement recommendations from a 2002 report by the state Legislature, titled “California’s Master Plan for Education,” which described the state’s K-12 governance as fragmented and “with overlapping roles that sometimes operate in conflict with one another, to the detriment of the educational services offered to students.” Newsom’s office said similar concerns have been raised repeatedly since 1920 and were echoed again in a December 2025 report by research center Policy Analysis for California Education.
“The sobering reality of California’s education system is that too few schools can now provide the conditions in which the State can fairly ask students to learn to the highest standards, let alone prepare themselves to meet their future learning needs,” the Legislature’s 2002 report stated. Those most harmed are often low-income students and students of color, the report added.
“California’s education governance system is complex and too often creates challenges for school leaders,” Edgar Zazueta, executive director of the Assn. of California School Administrators, said in a statement provided by Newsom’s office. “As responsibilities and demands on schools continue to increase, educators need governance systems that are designed to better support positive student outcomes.”
The current budget allocated $137.6 billion for education from transitional kindergarten through the 12th grade — the highest per-pupil funding level in state history — and Newsom’s office said his proposal is intended to ensure those investments translate into more consistent support and improved outcomes statewide.
“For decades the fragmented and inefficient structure overseeing our public education system has hindered our students’ ability to succeed and thrive,” Ted Lempert, president of advocacy group Children Now, said in a statement provided by the governor’s office. “Major reform is essential, and we’re thrilled that the Governor is tackling this issue to improve our kids’ education.”
Exactly one year ago, I drove up Pacific Coast Highway just before dawn.
Toppled utility poles and downed wires littered the street. In a tunnel of thick black smoke, flurries of glowing red embers raced across the road, out to sea. Hours passed, but the sun never rose. Everything was gone.
In the face of all this horror, everyday people responded not with fear or hate, but with courage and love. It’s human nature — a reflex to disaster more certain than the sunrise.
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Amid a chaotic evacuation in the Palisades, I watched residents use their minivans to pick up their neighbors who had been traveling on foot and shuttle them to safety. A volunteer community brigade marched door to door ensuring others got the evacuation orders.
In the year that’s followed, the same locals have stepped up to hold their governments accountable and fill in where leadership was vacant — even when some people, including some of their peers — considered that work controversial. They’ve all nonetheless helped their neighbors in tangible, meaningful, ways.
Here are their reflections (edited for length and clarity) on the year and the futures they imagine.
Keegan Gibbs leads the Community Brigade program with the Los Angeles County Fire Department. During the Palisades fire, the group’s roughly 50 volunteers went door to door ensuring residents had evacuated, fought spot fires and transported animals to safety. The group also routinely helps homeowners understand how to harden their homes against wildfire. This fall, the brigade doubled its size, with new recruits going through basic firefighter training.
Gibbs: Across Malibu and the Santa Monica Mountains, the Community Brigade envisions a critical mass of residents who have taken responsibility for their home “ignition zone,” creating neighborhoods where wildfire can move through the landscape without becoming a community-level disaster.
In this future, the Brigade is a trusted local institution and a proven model — demonstrating that shared responsibility and disciplined preparation can fundamentally change wildfire outcomes and be adapted across the West.
Kari Nadeau, a professor at the Harvard T.H. Chan School of Public Health, helps lead the LA Fire HEALTH Study, a first-of-its-kind research effort by universities and hospitals to understand the fires’ contamination and the subsequent health impacts over a 10-year period. The researchers have found that firefighters who fought the L.A. blazes had elevated levels of mercury and lead in their blood compared with other wildland firefighters and that the fires corresponded with increased emergency room visits for heart attacks and respiratory illnesses.
Nadeau: I think,10 years from now, we’re going to look back and say, we really tested for as many exposures as we could in the air, water and soil, and then we looked at whether or not they affected short-term and long-term health outcomes. That will not only help L.A. and policymakers, but it’ll also be scalable to the rest of the world — because the human body is the human body.
Jane Lawton Potelle founded Eaton Fire Residents United, a grassroots organization of residents with still-standing homes contaminated by the Eaton fire. The group — led mostly by women — assembled the first comprehensive evidence of widespread contamination within homes. Now, they’re pushing public health agencies to adopt best practices to remediate homes and keep residents safe, and they’re calling on insurance regulators to ensure survivors have the financial means to follow them.
Potelle: If the government doesn’t intervene, then five to 10 years from now our communities will still be living with contamination in homes and soil, driving preventable health harms while shifting massive long-term costs onto families.
EFRU hopes to see the “clearance before occupancy” approach communitywide so that all surviving homes, schools, businesses and public spaces affected by fallout from the L.A. fires have been restored to verifiably safe and healthy living conditions.
Spencer Pratt, second from right, who lost his home in the Palisades fire, at an anniversary event where he announced he was running for mayor.
Pratt:The most important lesson I learned this past year is that you cannot rely on our state and local government. … I remain hopeful that we can rebuild our family town. If the state and local government won’t give us the opportunity to start, I will continue asking the federal government to step in and help. There has to be a way to cut through the red tape and get people back to their hometown.
Pablo Alvarado is the co-executive director of the National Day Laborer Organizing Network, which not only cleared Pasadena’s streets but also trained hundreds of workers on how to safely operate in the burn areas, distributed more than a thousand personal protective equipment kits, and provided assistance to more than 13,000 families affected by the fires and ICE raids.
Alvarado:We don’t know what this political year will bring, or what the next five or 10 years will look like. But we do know this truth: Rebuilding will happen, and it is impossible to do it without migrant labor. Our work makes reconstruction possible. Yet while our labor is welcomed, our rights are not respected.
From Katrina to these fires, we have learned the same lesson again and again: No one is coming to save workers — not FEMA, not local governments, not corporations. That is why our message has always been clear: Solo el pueblo salva al pueblo. Only the people save the people.
Hundreds of Palisades fire survivors gather in Palisades Village to commemorate the one year anniversary of the Palisades fire on Wednesday. Residents and others were demanding that the government help accountable for its missteps, demand relief for those trying to rebuild and demand for more comprehensive emergency planning.
(Genaro Molina/Los Angeles Times)
More recent wildfire news
On Wednesday’s one-year anniversary of the fires, survivors of the Eaton and Palisades fires returned to their communities to mourn the loss of their neighborhoods and neighbors, and to demand accountability and action from their governments. You can read our coverage here.
At a fire anniversary protest in the Palisades, Spencer Pratt announced his candidacy for Los Angeles mayor. “Business as usual is a death sentence for Los Angeles, and I’m done waiting for someone to take real action,” he said.
The city of Los Angeles routinely ignored state fire safety regulations dictating the width and slope of roads for evacuation and firefighter access as it permitted development in areas with very high fire hazard, a new lawsuit alleges.
A few last things in climate news
Federal tax credits for residential solar, batteries and heat pumps expired at the end of 2025, reports Bloomberg’s Todd Woody. Tariffs probably will also push up prices for solar panels and batteries, which are primarily imported from China and Vietnam and other countries.
One company with deep ties to California stands to benefit from President Trump’s military intervention in Venezuela: Chevron. It is the only foreign oil company to maintain continued operations in Venezuela through decades of tumultuous politics, The Times’ Jack Dolan reports.
As Congress works to avert an end-of-January government shutdown, its latest spending package would largely keep the Environmental Protection Agency’s budget intact, reports Liza Gross for Inside Climate News. The Trump administration had initially proposed a 55% cut to the agency’s budget; the latest proposal cuts it by only 5%.
This is the latest edition of Boiling Point, a newsletter about climate change and the environment in the American West. Sign up here to get it in your inbox. And listen to our Boiling Point podcast here.
California is suing the Trump administration over its “baseless and cruel” decision to freeze $10 billion in federal funding for child care and family assistance allocated to California and four other Democratic-led states, Atty. Gen. Rob Bonta announced Thursday.
The lawsuit was filed jointly by the five states targeted by the freeze — California, New York, Minnesota, Illinois and Colorado — over the Trump administration’s allegations of widespread fraud within their welfare systems. California alone is facing a loss of about $5 billion in funding, including $1.4 billion for child-care programs.
The lawsuit alleges that the freeze is based on unfounded claims of fraud and infringes on Congress’ spending power as enshrined in the U.S. Constitution. The White House did not immediately respond to a request for comment.
“This is just the latest example of Trump’s willingness to throw vulnerable children, vulnerable families and seniors under the bus if he thinks it will advance his vendetta against California and Democratic-led states,” Bonta said at a Thursday evening news conference.
The $10-billion funding freeze follows the administration’s decision to freeze $185 million in child-care funds to Minnesota, where federal officials allege that as much as half of the roughly $18 billion paid to 14 state-run programs since 2018 may have been fraudulent. Amid the fallout, Gov. Tim Walz has ordered a third-party audit and announced that he will not seek a third term.
Bonta said that letters sent by the U.S. Department of Health and Human Services announcing the freeze Tuesday provided no evidence to back up claims of widespread fraud and misuse of taxpayer dollars in California. The freeze applies to the Temporary Assistance for Needy Families program, the Social Services Block Grant program and the Child Care and Development Fund.
“This is funding that California parents count on to get the safe and reliable child care they need so that they can go to work and provide for their families,” he said. “It’s funding that helps families on the brink of homelessness keep roofs over their heads.”
Bonta also raised concerns regarding Health and Human Services’ request that California turn over all documents associated with the state’s implementation of the three programs. This requires the state to share personally identifiable information about program participants, a move Bonta called “deeply concerning and also deeply questionable.”
“The administration doesn’t have the authority to override the established, lawful process our states have already gone through to submit plans and receive approval for these funds,” Bonta said. “It doesn’t have the authority to override the U.S. Constitution and trample Congress’ power of the purse.”
The lawsuit was filed in federal court in Manhattan and marked the 53rd suit California had filed against the Trump administration since the president’s inauguration last January. It asks the court to block the funding freeze and the administration’s sweeping demands for documents and data.
Gov. Gavin Newsom used his final State of the State address to underscore California’s jaw-dropping crime figures — stats that he said refute the president’s claims about widespread murder and mayhem.
To put in perspective some of the numbers cited by the governor on Thursday:
The last time homicides were this low in Oakland, Rev. Dr. Martin Luther King Jr. was visiting Joan Baez at Santa Rita Jail to commend her on her recent arrest in protest of the Vietnam draft.
Killings haven’t been so rare in San Francisco since superstar Marilyn Monroe wed baseball legend Joe DiMaggio at City Hall.
And violent deaths in the city of Los Angeles fell to rates not seen since the Beatles played Dodgers Stadium, their penultimate public show.
“We have seen double-digit decreases in crime overall in the state of California,” Newsom said. “We’ve got more work to do, but to those with that California derangement syndrome, I’ll repeat — it’s time to update your talking points.”
The governor’s remarks follow reporting by The Times that showed L.A.’s homicide rate is nearing a record low, mirroring trends in other cities nationwide.
With the counts based on data from the LAPD and other law enforcement agencies, President Trump’s insistence that crime in California is out of control has come to seem increasingly bombastic. Recently, the president has modified his message to warn of a possible crime resurgence.
“We will come back, perhaps in a much different and stronger form, when crime begins to soar again,” Trump said on Truth Social in a post announcing an end to his legal battle to maintain National Guard troops in L.A., Portland and Chicago. “Only a question of time!”
In his speech Thursday, Newsom credited the stark drop in violence to a flood of crime-fighting cash unleashed by the California Legislature.
“No one’s walked away from public safety,” Newsom said. “We didn’t turn a blind eye to this, we invested in it. We didn’t talk about it, we leaned in.”
But experts said the reality is more complicated. Those who study the root causes of crime say that it may take years, if not decades, to disentangle the causes of the pandemic-era surge in violence and the precipitous drop that has followed.
Trump hammered lawlessness in California’s streets during the 2024 presidential campaign and throughout his first year back in the White House. He rarely names Newsom without invoking crime and chaos, and regularly threatens to surge armed soldiers back into into the streets.
At the same time, the Trump administration has slashed hundreds of millions in federal funding from school safety grants, youth mentoring programs and gang intervention networks that experts say have been instrumental in improving public safety.
Proponents worry those cuts could threaten L.A.’s patchwork of alternative crisis response programs aimed at easing the city’s reliance on law enforcement. In recent years, scores of groups have sprung up to assist people dealing with homelessness, drug addiction and the symptoms of untreated mental health disorders — all of which can heighten the perception of crime, even when actual numbers go down.
Looming cuts in federal spending could hinder efforts to scale up these initiatives, some warned.
“I just don’t know how we can continue to trend in the right direction without continuing to invest in things that work,” said Thurman Barnes, assistant director of the New Jersey Gun Violence Research Center.
According to data published by the Major Cities Chiefs Assn., homicides were down in San Francisco, San José, Sacramento and Oakland. Other violent crimes, including rape, aggravated assault and robbery, also dropped, with a handful of exceptions.
Property crime was also down, the governor said Thursday.
Street-level disorder and perceptions of widespread lawlessness helped topple progressive administrations across California in 2024 and earned Trump an unexpected windfall in some of the state’s bluest cities.
Those concerns are “at the core” of California voters’ frustrations, Newsom acknowledged Thursday.
“We’re seeing results, making streets safer for everyone,” the governor said.
Jeff Asher, a leading expert in the field of criminology, said it’s hard to say whether the perception gap is closing “because we don’t necessarily track it super systematically.”
But he pointed to a Gallup poll from late last year that showed less than half of Americans believed that crime had gone up — the first time in two decades that that number had dipped below 50%.
“The pandemic broke us in a lot of ways, and we’re starting to not feel as broken,” he said.
Newsom also touted sharp declines in the number of people living on the streets.
Unsheltered homelessness dropped 9% in California and more than 10% in Los Angeles, the governor announced — data he sought to contrast with an 18% rise in homelessness nationwide.
The sight of encampments and people in the throes of psychosis in the streets drives perceptions of lawlessness and danger, studies show. Lowering it soothes those fears.
But California’s overall homeless population remains stubbornly high, with only modest reductions. Federal funding cuts could hamper efforts to further reduce those numbers, experts warned.
Rather than dig into the complexities of crime, Newsom sought to portray the president himself as the driver of lawlessness, calling the first year of his second term a “carnival of chaos.”
“We face an assault on our values unlike anything I’ve seen in my lifetime,” the governor said. “Secret police. Businesses being raided. Windows smashed, citizens detained, citizens shot. Masked men snatching people in broad daylight, people disappearing. Using American cities as training grounds for the United States military.”
“It’s time for the president of the United States to do his job, not turn his back on Americans that happen to live in the great state of California,” Newsom said.
Gov. Gavin Newsom on Thursday previewed a major education system overhaul that would give the next governor more authority over state school policies and redefine — and almost certainly diminish — the role of the elected state superintendent of public instruction.
The governor’s office indicated Thursday that major portions of the proposal, to be included in the state budget plan Friday, are based on a December 2025 report from Policy Analysis for California Education (PACE), a nonpartisan center that brings together researchers from Stanford, UC Berkeley, UCLA, UC Davis and USC.
The central aspect of the PACE plan calls for removing the state superintendent as the head of the California Department of Education. Instead, that department would be run by an appointee of the state Board of Education. Members of the state board are appointed by the governor to fixed four-year terms.
The PACE report envisions the “governor as the chief architect and steward responsible for aligning and advancing California’s education system.” According to the report, the “governor could develop long-term plans and use the budget as a strategic lever to advance them.”
A release from the governor’s office asserted that the state’s education system operates as “a fragmented set of entities with overlapping roles that sometimes operate in conflict with one another, to the detriment of educational services offered to students.”
This education initiative, if approved by the Legislature, could prove a defining element of Newsom’s education agenda for his last year in office. He would not get to exercise these new powers, which would fall to his successor.
State Supt. of Public Instruction Tony Thurmond immediately raised concerns, while also praising Newsom’s record on education.
“Gov. Newsom has done an incredible job on education, one of the best governors we’ve had on education … and I think we have been more aligned than any state superintendent and governor in recent times,” said Thurmond, who is running to succeed Newsom as governor. “On this one issue, I don’t think we could be more misaligned.”
Here are the details and why Newsom wants to move forward with this plan.
Who controls what happens in California’s schools?
Authority over education is distributed among different officeholders.
The Legislature passes laws related to education. The governor chooses which to sign. The governor also proposes what to pay for in education through his budget plan. The Legislature can amend the plan and has the responsibility to approve it.
The elected state superintendent runs the state Department of Education and serves as the administrative lead for the state Board of Education. The superintendent does not have a vote on the board. In some areas, he answers to the authority of the state board; in others, he does not.
The governor appoints the state board, which approves the wording of state education policies. The board also approves curriculum and grants waivers to school districts seeking exemptions from state rules.
What is the problem Newsom says he is trying to fix?
The PACE report says the system is too complicated. It’s not clear who is in charge of what and who is accountable for results.
This has not stopped state officials from taking credit for positive developments or favored policies. Both Newsom and Thurmond take credit for creating the new grade of transitional kindergarten for 4-year-olds and for providing two meals at school each day for all students.
Both had a role in supporting and executing that policy, although neither would have happened without Newsom’s favor.
Some parts of the education system are not faring so well. Statewide student test scores and absenteeism rates — although improving — are worse than in 2018-19, before the COVID-19 pandemic. Fewer than half of California students meet state standards in English language arts and math.
As part of its work, the PACE research team conducted interviews with 16 former and current policymakers, researchers and education leaders. Collectively they rated the performance of the state’s education system somewhere between fair and poor when it comes to strategic thinking, accountability, capacity, knowledge governance, stakeholder involvement and systemwide perspective.
What would the state superintendent do under the Newsom plan?
A news release from the governor said his plan would “expand and strengthen the State Superintendent of Public Instruction’s ability to foster coordination and alignment of state education policies from early childhood through post-secondary education.”
Thurmond is not persuaded, based on his review of the PACE report, which would take the Department of Education away from the superintendent.
That report reimagines that state superintendent as a student “champion” who would analyze and report on the effectiveness of the state education system and also take on an advocacy role.
The PACE analysts noted that the Legislature would need to provide funding and staffing for the superintendent, in this new role, to be effective. Thurmond said that even under the current structure, underfunding of the state Education Department limits its effectiveness.
Thurmond said it would make more sense to give the elected state schools leader more authority over education spending and more resources, given that individual’s specific focus on education.
Why not just eliminate the elected state superintendent?
The state’s voters have rejected that option in the past. So have the powerful teachers unions, which have seen the office as a check on the governor’s power and an outpost in which they could campaign to install an ally.
How does this play out politically?
Newsom has taken credit for much in education, including career and mentoring programs, funding for teacher training and expanded community schools, which serve the broader needs of an entire family.
“Just this year, we’ve seen improved academic achievement in every subject area, in every grade level, in every student group,” Newsom said in his prepared State of the State remarks, “with greater gains in test scores for Black and Latino kids.”
He also took credit for state education spending per student at the highest level to date.
But he or his representatives have, at times, distanced himself from Department of Education guidelines that have expanded the rights of transgender students, including, for example, the right of transgender students to play on girls’ sports teams.
California Supt. of Public Instruction Tony Thurmond has concerns about Gov. Gavin Newsom’s proposal to change how the state’s schools are managed.
(Josh Edelson/For The Times)
Under the proposed system, a future governor would be more accountable for these and other policies.
Thurmond said that Newsom’s positive record proves that the governor already is the most powerful official in the state when it comes to education — and that more power does not need to be concentrated in that office.
What is the governance model in other states?
If California were to adopt a model in which the state board appoints the head of the Education Department, “it would align with the plurality of states that follow this governance approach,” the PACE report states.
In 20 states, including Massachusetts, New York, Florida and Mississippi, state boards of education directly appoint their chief state school officers. Twelve states, including California, select their chief state school officer through direct election.
Thurmond countered that even in some states with an appointed superintendent, the role has more authority than the elected superintendent in California.
In a week dominated by news of immigration authorities killing a Minnesota mother; acknowledgment that “American First” really means running Venezuela for years to come; and the U.S. pulling even further out of global alliances, Newsom offered a soothing and unifying vision of what a Democratic America could look like.
Because, of course, far more than a tally of where we are as a state, the speech served as a likely road map of what a run for president would sound like if (or when) Newsom officially enters the race. In that vein, he drove home a commitment to both continuing to fight against the current administration, but also a promise to go beyond opposition with values and goals for a post-Trump world, if voters choose to manifest such a thing.
It was a clear volley against Republicans’ love of using California as the ultimate example of failed Democratic policies, and instead positioning it as a model.
“This state, this people, this experiment in democracy, belongs not to the past, but to the future,” Newsom told the packed Legislative chamber Thursday. “Expanding civil rights for all, opening doors for more people to pursue their dreams. A dream that’s not exclusive, not to any one race, not to any one religion, or class. Standing up for traditional virtues — compassion, courage, and commitment to something larger than our own self-interest — and asserting that no one, particularly the president of the United States, stands above the law.”
Perhaps the most interesting part of Thursday’s address was the beginning — when Newsom went entirely off script for the first few minutes, ribbing the Republican contingent for being forced to listen to nearly an hourlong speech, then seeming to sincerely thank even his detractors for their part in making California the state it is.
“I just want to express gratitude every single person in this chamber, every single person that shaped who we are today and what the state represents,” Newsom said, even calling out Assemblymember Carl DeMaio, one of his most vociferous foes, who released a questionable AI-generated “parody” video of Newsom in response to the speech.
It was in his off-the-cuff remarks where Newsom gave the clearest glimpse of what he might look like as a candidate — confident, at ease, speaking to both parties in a respectful way that the current president, who has labeled Democrats as enemies, refuses to do. Of course, he’d likely do all that during a campaign while continuing his lowbrow online jabbing, since the online world remains a parallel reality where anything goes.
But in person, at least, he was clearly going for classy over coarse. And gone is the jargon-heavy Newsom of past campaigns, or the guarded Newsom who tried to keep his personal life personal. His years of podcasts seem to have paid off, giving him a warmer, conversational persona that was noticeably absent in earlier years, and which is well-suited to a moment of national turmoil.
Don’t get me wrong — Newsom may or may not be the best pick for Democrats and voters in general. That’s up to you. I just showed up to this dog-and-pony show to get a close-up look at the horse’s teeth before he hits the track. And I’ve got to say, whether Newsom ends up successful or not in an Oval Office run, he’s a ready contender.
Beyond lofty sentiments, there was a sprinkling of actual facts and policies. Around AI, he hinted at greater regulation, especially around protecting children.
Other concrete policy callouts included California’s commitment to increasing the number of people covered by health insurance, even as the federal government seeks to shove folks off Medicaid. In that same wellness bucket, he touted a commitment to getting processed foods out of school cafeterias and launching more medications under the state’s own generic drug label, including an $11 insulin pen launched last week.
On affordability, he found common ground with a proposal Trump put out this week as well — banning big investors from buying up single family homes. Although in California this is less of a problem than in some major housing markets, every house owned by a big investor is one not owned by a first-time buyer. Newsom called on the Legislature to work on a way to curtail those big buyers.
He also hit on our high minimum wage, especially for certain industries such as fast food ($20 an hour) and healthcare ($25 an hour), compared with states where the federal minimum wage still holds sway at just more than $7 an hour.
And on one of his most vulnerable points, homelessness, where Republicans and Trump in particular have attacked California, he announced that unsheltered homelessness decreased by 9% across the state in 2025 — though the data backing that was not immediately available. He also said that thousands of new mental health beds, through billions in funding from Proposition 1 in 2024, are beginning to come online and have the potential to fundamentally change access to mental health care in the state in coming years. This July, a second phase of Proposition 1 will bring in $1 billion annually to fund county mental health care.
Newsom will release his budget proposal on Friday, with much less fanfare. That’s because the state is facing a huge deficit, which will require tough conversations and likely cuts. Those are conversations about the hard work of governing, ones that Newsom likely doesn’t want to publicize. But Thursday was about positioning, not governing.
“In California, we are not silent,” Newsom said. “We are not hunkering down. We are not retreating. We are a beacon.”
It may not be a groundbreaking stand to have a candidate that understands politics isn’t always a battle of good and evil, but instead a negotiation of viewpoints. It’s surely a message other Democrats will embrace, one as basic as it is inspiring in these days of rage and pain.
But Newsom is staking that territory early, and did it with an assurance that he explained in a recent Atlantic profile.
He’d rather be strong and wrong than weak and right — but strong and righteous is as American as it gets.
A year ago, we were all glued to our phones, namely the Watch Duty app, as we watched fires rip through beloved neighborhoods and landscapes. We braced ourselves for the death toll, the number of homes lost and what was harmed in our beloved mountains.
The Eaton and Palisades fires were the beginning of a crushing year for L.A.
I don’t believe in closure or want to push the idea of resilience, concepts too often forced in these kind of post-disaster narratives. But I do believe in pausing to discern what we have learned over the past year.
I recently spoke with trail crew volunteers, including two who lost their houses in the fires, to get their takes.
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They each shared what’s helped them move through this past year, including what we can learn from the regrowth and recovery of our local forests. I left these conversations feeling inspired by both the natural and human spirit. I hope you will be too.
Lesson 1: Humans are adaptable like the trees and plants
After the devastating 2018 Woolsey fire, which burned much of the Santa Monica Mountains, photographer Jane Simpson made regular pilgrimages to Malibu Creek State Park to document the renewal process. She saw the hillsides start to green, and lupine and other flowers (and mustard) start to bloom.
It helped give her a baseline for what to expect when she started returning to the mountains scorched by the Palisades fire.
Simpson is a member of the Sierra Club Angeles Chapter’s Santa Monica Mountains Task Force trail crew, known often by their nickname, the Trailies.
In November, Simpson worked alongside other Trailies on the Bienveneda and Leacock trails in Topanga State Park. The area was badly burned, but still Simpson noticed green sprouts peeking out of the ashy soil and from the branches of trees that the average passerby might assume were dead.
“I just want to think that the trees, the flowers, the [landscape] are not just responding blindly and dumbly — we know they’ve learned to adapt, and humans are learning to adapt as well,” said Simpson, who joined the Trailies in 2017.
Simpson has been forced to adapt. Her home in the Palisades Highlands was among thousands that burned in the Palisades fire, and she alongside her neighbors are grappling with whether to rebuild. Simpson grew up in Mandeville Canyon, and as a kid, she’d head out the door with a sack lunch and friends for a day of unsupervised adventures. It’s hard to imagine not living there.
Trail crew worker Jane Simpson observes a Humboldt’s lily in Santa Ynez Canyon last summer.
(Gaby Valensi)
Before the fire, Simpson could walk out her front door and quickly take one of about five nearby trailheads. She and a neighbor would often “just head out the door and go anywhere,” she said, like the many times they headed along Palisades Drive to Temescal Ridge Trail to Radio Peak, a local name for Temescal Peak.
Those trips helped them learn the local plants and how they changed with the seasons, like how the ceanothus would blossom with blue blooms in early spring. And in Santa Ynez Canyon, Simpson loved spotting the Humboldt’s lilies, knowing the perennials would come back every year.
Even after the devastation of the Palisades fire, she’s seen those lilies return to the same spot they’ve always been.
“A fire-scarred landscape may look dead, but spotting a familiar flower is like seeing old friends,” she said. “It’s reassurance — that some kind of normal is possible. Of course, when it is your own property, there is no normal there, but there is reassurance that for the earth, the wildlife, plants, things will go on, even if I don’t return.”
Lesson 2: We have our own ecological role to play
Trailie crew member Ron Dean is drawn to trail work for creativity. Every 10 minutes, there’s seemingly a new problem the trail crew faces, like, “Where should we put the trail? Should we put the rocks over here? Does this need a drain? How can we move this thing out of the way? It’s wonderful,” he said.
When I asked Dean, who joined the crew 12 years ago, to describe his relationship with the Santa Monica Mountains, he was quick to answer.
“When I’m out in the mountains, I feel like I’m hanging out with my best friend,” Dean said.
A Trailies volunteer works on the Leacock Trail in 2019.
(Jane Simpson)
Dean moved from Wisconsin to L.A. in 1970 for a job and stayed for the climate and landscape. Every Sunday for the past several years, Dean and his son Josh would hike in the Santa Monica Mountains, leaving Dean’s home in the Palisades and often hitting a loop trail to Goat Peak, also referred to by some locals as High Point. After the hike, they’d have brunch and watch football.
That home, which was built in 1951, burned in the Palisades fire. Similar to how he approaches trail work, Dean is looking at how to create a better home for today’s climate, adding solar panels, backup batteries, water recycling and a heat pump system.
Dean is comfortable tackling problems that seemingly have no end. He’s known among his fellow Trailies as the “mustard man” because whenever he sees invasive black mustard — the yellow flowers that cover L.A.’s hillsides in the spring before drying into quick-burning brown twigs — he yanks it out. “Will I win? Of course not,” Dean said.
A member of the Trailies works on Leacock Trail in 2019.
(Jane Simpson)
This is the kind of acceptance Dean has learned from our local mountains — that we can all do our part for as long as we’re here.
Lesson 3: Restoration is a form of reciprocity
In 2012, Rubio Canyon Trail Crew member Sean Green made it his personal mission to restore the Lone Tree Trail in Rubio Canyon. The path, built more than 100 years ago, was constructed so that workers from a municipal water company could reach the utility’s water intakes far into the canyon, Green said.
The trail had been abandoned for decades, but was rediscovered after the 1993 Kinneloa fire ripped through the area. “I decided I loved that trail and I restored it,” Green said.
The Rubio Canyon Trail Crew removes a landslide from the Gooseberry Motorway in 1997.
(Sean Green)
The trail crew’s work is part of a long history of give and take between humans and the canyon.
The lush landscape of chaparral, coast sage scrubs and creek beds was once a stop on the Mount Lowe Railway. The “railway climbed the steep Lake Avenue and crossed the poppy fields into the Rubio Canyon,” according to a local history website. “This part of the trip was called the Mountain Division. At this juncture stood the Rubio Pavilion, a small 12-room hotel. From there the passengers transferred to a cable car funicular which climbed the Great Incline to the top of the Echo Mountain promontory.”
The Rubio Cañon Land and Water Assn. has pulled water from the canyon since the 1880s, delivering it to nearby residents in Altadena. But in the late ’90s, in a still-debated controversy, the water company completed a construction project that sent thousands of yards of debris into the canyon, burying at least three waterfalls.
“Whether by nature’s hand or man’s, with time or with money, Rubio Canyon’s waterfalls will return,” Pasadena Star-News journalist Becky Oskin wrote at the time.
It appears that time has finally come.
Green said heavy rains pushed debris away from the once-covered Maidenhair Falls, a 30-foot cascade named after the Maidenhair ferns that once surrounded it.
The Rubio Canyon Trail Crew, which has worked in the area for more than 25 years, is busy bringing the rest of the canyon’s trails back too.
Claus Boettger, Phil Fujii and Jason Trevor backfill a new retaining wall along the Gooseberry Motorway in 2005. The original road was built in 1923 by Southern California Edison to install electric towers along the foothill ridges. It is now a single-track trail.
(Sean Green)
The Eaton fire ripped through the Rubio Canyon Preserve, seriously damaging the canyon’s chaparral, coast sage scrub and riparian habitats.
Green said his crew has almost finished restoring the Loma Alta Trail and has put in several hours on the Gooseberry Motorway, which takes hikers up and over a ridgeline, eventually into Angeles National Forest. The motorway was originally built by Southern California Edison to install electrical towers, Green said.
The crew has started seeing wildflowers, trees and wildlife all return to the canyon.
“The land is recovering,” Green said. “The Eaton fire caused a lot of damage, burning many houses down and burning the vegetation, but nature is very resilient and it will come back. … The canyon itself is going to take awhile to look like a vegetated canyon bottom because of all the debris that came down, but the rest of Rubio Canyon is going to regrow. It’s going to look pretty, and we’re going to get the trails in shape.”
Lesson 4: Hard work pays off
Lowelifes founder Rob Pettersen repairs a trail in Angeles National Forest.
(Erik Hillard, Lowelifes RCC)
The hiking trails of Angeles National Forest, as a whole, are in far better shape than they were 10 years ago. In spite of repeated wildfires — the Bobcat fire in 2020, the Bridge fire in 2024, the Eaton fire last year — and heavy rains, the trails remain.
I was so focused on the damage of the past year from the Eaton fire and heavy rainfall, I hadn’t zoomed out to consider the bigger picture until I spoke to Rob Pettersen, a founding board member of the Lowelifes Respectable Citizens’ Club.
The Lowelifes are among a dedicated coalition of trail crews that dedicate hundreds of hours every year to reestablishing damaged trails by lugging out fallen and dead trees, moving soil and rock, and more.
“We are moving forward, but Mother Nature has other ideas sometimes,” Pettersen said. “There’s no silver bullet for fixing these trails. They just need constant attention. It’s just the nature of our geology.”
Pettersen has volunteered on trail work crews off and on for the past 20 years, most consistently after Lowelifes was founded in 2019. Pettersen enjoys living in Los Feliz, but like most of us, is drawn to the solace and peace that the mountains provide.
After the 2020 Bobcat fire, which burned through Big Santa Anita Canyon and several other beloved places, the Lowelifes focused several months on restoring the Idlehour Trail, a six-mile jaunt through lush woodland.
“This time last year, Idlehour was in some of the best shape it’s ever been — and then it got melted” in the Eaton fire, Pettersen said. “It’s a very popular [and] special place for Lowelifes folks individually, and the fact we had just completed a lot of work there is kind of brutal.”
This ebb and flow of fire and flood, exacerbated by human-caused climate change, he said, is why the Lowelifes focus on restoring trails to a quality that can withstand harsh conditions.
“Even though we’ve had multiple years now where we’ve done a bunch of trail restoration work and then got hit by several inches of rain in 12 hours,” Pettersen said, “the vast majority of the trail mileage holds up because we do good work so the trail isn’t gone. But the trouble spots — the heavy drainages, the cliffy areas — those are always impacted by debris flow. So it’s a bummer, but it also feels good to be making a difference and doing good work for the community.”
Rob Pettersen cuts through a downed log during a Lowelifes work day on trails in Angeles National Forest.
(Matt Baffert, Lowelifes RCC)
Several Lowelife crew members lost their homes or livelihood in the Eaton fire, including Lowelifes president Matt Baffert. Additionally, the fire also burned up the crew’s tools, which were stored at Baffert’s home.
A year later, though, Baffert and others are rebuilding and moving back, Pettersen said.
That’s in large part because the community rallied behind the Lowelifes. The group received several grants and donations, and the Lowelifes as a nonprofit came out of the fire more financially secure than before. Pettersen said so many volunteers showed up to help that the Lowelifes had to turn people away because they couldn’t safely fit everyone who showed up on the trails to work.
“It’s amazing seeing how many people care about our Lowelifes individually and about our trails and our Angeles National Forest,” Pettersen said. “People care about trails, people care about public lands; that’s been positive and we want to keep building on that.”
This month, the Lowelifes plan — rain and snow permitting — to head back to the Idlehour trail.
The work continues.
3 things to do
Hikers with Hearts for Sight and the Sierra Club Angeles Chapter trek along a path together.
(Joan Schipper, Hearts For Sight)
1. Volunteer as a hiker guide in L.A. Hearts For Sight and the Sierra Club Angeles Chapter will host their monthly White Cane Hike at 8:30 a.m. Jan. 18 in Griffith Park. Volunteers are needed to guide blind and visually-impaired hikers on a gentle hike from Franklin’s Cafe & Market to a heliport in the park. The hike is free, and lunch is provided. To register, call Hearts for Sight at (818) 457-1482.
2. Make new friends hiking in Elysian Park LA for the Culture Hiking Club will host a beginner-friendly, free community hike at noon Saturday in Elysian Park. The group will meet at the Grace E. Simons Lodge parking lot before heading onto the Elysian Park West Loop, which offers stunning views of the city. Register at eventbrite.com.
3. Commune with nature and a notebook near Calabasas California State Parks and Santa Monica Mountains Nature Journal Club will host a nature journaling meetup from 10 a.m. to 12:30 p.m. Sunday at Malibu Creek State Park. Participants who are new to nature journaling are invited to take a free introductory course while experienced nature journalers can head into the park. The group will reconvene at noon to share their experiences. Guests are invited to bring a potluck dish to share. Register at eventbrite.com.
The must-read
(Mary Forgione / Los Angeles Times)
One of the first places I go to research a trail is The Times archives because we’ve been writing about the trails and campgrounds of Angeles National Forest for more than 100 years. In all that time, we haven’t slowed down enough to write a comprehensive guide of the forest — until now. I spent the past few months researching and writing what is a part love letter/part guide to help you explore every corner of the 700,000-acre national forest playground that sits right in our backyard. I hope you save this guide and use it for many of your future adventures! I know I will.
Happy adventuring,
P.S.
After the recent rain and snowfall, there are new and serious hazards on our local trails that you must consider before heading out. We have already lost at least three hikers locally this winter. As I’ve written previously, you often need crampons and an ice axe, equipment you need to be experienced using, before heading into a snow hike with elevation gain. I have seen several images on social media of hikers celebrating at the snow-covered Mt. Baldy summit, the highest point in the San Gabriel Mountains, but anyone headed up Baldy needs to understand how dangerous the hike is in winter conditions. As Kyle Fordham, a 36-year-old experienced hiker, told my colleagues, the Devil’s Backbone trail is typically considered the easier option, but it becomes “a death slide” in the winter. “It basically becomes a giant ice cliff,” Fordham said. “If you don’t know what you’re doing, you can very easily die on it.” If you do run into a fellow hiker in need, please help however you can. It can sometimes be the kindness of a stranger that saves a life. Stay safe out there, friends!
For more insider tips on Southern California’s beaches, trails and parks, check out past editions of The Wild. And to view this newsletter in your browser, click here.
SACRAMENTO — In his final State of the State address, Gov. Gavin Newsom will look to define his legacy by touting California’s economic and policy achievements while casting the state as a counterweight to dysfunction in Washington.
The speech, which he will deliver Thursday morning to lawmakers in the Capitol, highlights economic strength, falling homelessness and expanded education funding, while also offering a glimpse of how Newsom is positioning himself beyond his final year in office.
In a summary of the speech provided Thursday morning, Newsom portrayed California as a financial powerhouse that strives to help those in need and works diligently to address its own shortcomings, including high housing costs, unlike the chaotic Trump administration. Newsom, who has acknowleged that he is considered a 2028 bid for president, argues that the state is positioned not just to endure the moment but to help shape what comes next nationally.
Newsom is expected to announce an estimated 9% drop statewide in unsheltered homelessness last year, addressing a topic that has been a persistent political vulnerability for the two-term governor and former San Francisco mayor. Despite some improvements, California has been home to nearly a quarter of the nation’s homeless population, according to the Public Policy Institute of California.
Newsom also said two of his top priorities — the mental health program known as CARE Court and Proposition 1, the statewide bond measure he championed to provide funding for mental health and homelessness — are achieving results ahead of schedule, with counties now equipped with funding, authority and tools to combat the crisis.
Calling affordability a multi-layered crisis, Newsom is expected to signal a tougher stance toward the buying spree of homes by private equity and institutional investors in California. That message is a rare point of rhetorical overlap with Trump, who has said the United States should bar such practices because they push prices beyond the reach of many Americans.
Newsom offered a few previews of select budget priorities, with his office set to unveil the full proposed budget on Friday. The governor will announce that the state would set a record on per-student funding in public schools and fully fund universal transitional kindergarten under his budget proposal. He is also expected to announce a major shift in how the state oversees education, unifying the policymaking State Board of Education with the California Department of Education, which is responsible for carrying out those policies.
The address will mark the first time in five years that Newsom delivers a State of the State from the Assembly rostrum. His last in-person address came shortly before COVID-19 shut down the Capitol in early 2020.
Last year, he delivered his written remarks unusually late, in September, during which he said the state was under siege by the Trump administration — which he accused of dismantling public services, flouting the rule of law and using extortion to bully businesses and universities — all while California grappled with the aftermath of the devastating Los Angeles County fires, spiraling housing costs and an uneven economic recovery.
Like past speeches, Newsom will tout the successes of California, now the world’s fourth-largest economy.
Former vice presidential contender and current aw-shucks Minnesota Gov. Tim Walz announced this week that he won’t run for a third term, dogged by a scandal over child care funds that may or may not be going to fraudsters.
It’s a politically driven mess that not coincidentally focuses on a Black immigrant community, tying the real problem of scammers stealing government funds to the growing MAGA frenzy around an imaginary version of America that thrives on whiteness and Christianity.
Despite the ugliness of current racial politics in America, the fraud remains real, and not just in Minnesota. California has lost billions to cheats in the last few years, leaving our own governor, who also harbors D.C. dreams, vulnerable to the same sort of attack that has taken down Walz.
As we edge closer to the 2028 presidential election, Republicans and Democrats alike will probably come at Gavin Newsom with critiques of the state’s handling of COVID-19 funds, unemployment insurance and community college financial aid to name a few of the honeypots that have been successfully swiped by thieves during his tenure.
In fact, President Trump said as much on his social media barf-fest this week.
“California, under Governor Gavin Newscum, is more corrupt than Minnesota, if that’s possible??? The Fraud Investigation of California has begun,” he wrote.
Just to bring home that this vulnerability is serious and bipartisan, Rep. Ro Khanna, the Silicon Valley congressman rumored to have his own interest in the Oval Office, is also circling the fraud feast like a vulture eyeing his next meal.
“I want to hear from residents in my district and across the state about waste, mismanagement, inefficiencies, or fraud that we must tackle,” Khanna wrote on social media.
Newsom’s spokesman Izzy Gardon questioned the validity of many fraud claims.
“In the actual world where adults govern,” Gardon said, “Gavin Newsom has been cleaning house. Since taking office, he’s blocked over $125 BILLION in fraud, arrested criminal parasites leaching off of taxpayers, and protected taxpayers from the exact kind of scam artists Trump celebrates, excuses, and pardons.”
What exactly are we talking about here? Well, it’s a pick-your-scandal type of thing. Even before the federal government dumped billions in aid into the states during the pandemic, California’s unemployment system was plagued by inefficiencies and yes, scammers. But when the world shut down and folks needed that government cash to survive, malfeasance skyrocketed.
Every thief with a half-baked plan — including CEOs, prisoners behind bars and overseas organized crime rackets — came for California’s cash, and seemingly got it. The sad part is these weren’t criminal geniuses. More often than not, they were low-level swindlers looking at a system full of holes because it was trying to do too much too fast.
In a matter of months, billions had been siphoned away. A state audit in 2021 found that at least $10 billion had been paid out on suspicious unemployment claims — never mind small business loans or other types of aid. An investigation by CalMatters in 2023 suggested the final figure may be up to triple that amount for unemployment. In truth, no one knows exactly how much was stolen — in California, or across the country.
It hasn’t entirely stopped. California is still paying out fraudulent unemployment claims at too high a rate, totaling up to $1.5 billion over the last few years — more than $500 million in 2024 alone, according to the state auditor.
But that’s not all. Enterprising thieves looked elsewhere when COVID-19 money largely dried up. Recently, that has been our community colleges, where millions in federal student aid has been lost to grifters who use bots to sign up for classes, receive government money to help with school, then disappear. Another CalMatters investigation using data obtained from a public records request found that up to 34% of community college applications in 2024 may have been false — though that number represents fraudulent admissions that were flagged and blocked, Gardon points out.
Still, community college fraud will probably be a bigger issue for Newsom because it’s fresher, and can be tied (albeit disingenuously) to immigrants and progressive policies.
California allows undocumented residents to enroll in community colleges, and it made those classes free — two terrific policies that have been exploited by the unscrupulous. For a while, community colleges didn’t do enough to ensure that students were real people, because they didn’t require enough proof of identity. This was in part to accommodate vulnerable students such as foster kids, homeless people and undocumented folks who lacked papers.
With no up-front costs for attempting to enroll, phonies threw thousands of identities at the system’s 116 schools, which were technologically unprepared for the assaults. These “ghost” students were often accepted and given grants and loans.
My former colleague Kaitlyn Huamanireported that in 2024, scammers stole roughly $8.4 million in federal financial aid and more than $2.7 million in state aid from our community colleges. That‘s a pittance compared with the tens of billions that was handed out in state and federal financial aid, but more than enough for a political fiasco.
As Walz would probably explain if nuanced policy conversations were still a thing, it’s both a fair and unfair criticism to blame these robberies on a governor alone — state government should be careful of its cash and aggressive in protecting it, and the buck stops with the governor, but crises and technology have collided to create opportunities for swindlers that frankly few governmental leaders, from the feds on down, have handled with any skill or luck.
The crooks have simply been smarter and faster than the rest of us to capitalize first on the pandemic, then on evolving technology including AI that makes scamming easier and scalable to levels our institutions were unprepared to handle.
Since being so roundly fleeced during the pandemic, multiple state and federal agencies have taken steps in combating fraud — including community colleges using their own AI tools to stop fake students before they get in.
And the state is holding thieves accountable. Newsom hired a former Trump-appointed federal prosecutor, McGregor Scott, to go after scam artists on unemployment. And other county, state and federal prosecutors have also dedicated resources to clawing back some of the lost money.
With the slow pace of our courts (burdened by their own aging technology), many of those cases are still ongoing or just winding up. For example, 24 L.A. County employees were charged in recent months with allegedly stealing more than $740,000 in unemployment benefits, which really is chump change in this whole mess.
Another California man recently pleaded guilty to allegedly cheating his way into $15.9 million in federal loans through the Paycheck Protection Program and Economic Injury Disaster Loan programs.
There are literally hundreds of cases across the country of pandemic fraud. And these schemes are just the tip of the cash-berg. Fraudsters are also targeting fire relief funds, food benefits — really, any pot of public money is fair game to them. And the truth is, the majority of that stolen money is gone for good.
So it’s hard to hear the numbers and not be shocked and angry, especially as the Golden State is faced with a budget shortfall that may be as much as $18 billion.
Whether you blame Newsom personally or not for all this fraud, it’s hard to be forgiving of so much public money being handed to scoundrels when our schools are in need, our healthcare in jeopardy and our bills on an upward trajectory.
The failure is going to stick to somebody, and it doesn’t take a criminal mastermind to figure out who it’s going to be.
SACRAMENTO — Gov. Gavin Newsom and other state Democratic leaders accused President Trump of unleashing a political vendetta after he announced plans to freeze roughly $10 billion in federal funding for child care and social services programs in California and four other Democrat-controlled states.
Trump justified the action in comments posted on his social media platform Truth Social, where he accused Newsom of widespread fraud. The governor’s office dismissed the accusation as “deranged.”
Trump’s announcement came amid a broader administration push to target Democratic-led states over alleged fraud in taxpayer-funded programs, following sweeping prosecutions in Minnesota. The U.S. Department of Health and Human Services confirmed the planned funding freeze, which was first reported by The New York Post.
California officials said they have received no formal notice and argued the president is using unsubstantiated claims to justify a move that could jeopardize child care and social services for low-income families.
How we got here
Trump posted on his social media site Truth Social on Tuesday that under Newsom, California is “more corrupt than Minnesota, if that’s possible???” In the post, Trump used a derogatory nickname for Newsom that has become popular with the governor’s critics, referring to him as “Newscum.”
“The Fraud Investigation of California has begun,” Trump wrote.
The president also retweeted a story by the New York Post that said his Department of Health and Human Services will freeze taxpayer funding from the Child Care Development Fund, the Temporary Assistance for Needy Families program, which is known as CalWORKS in California, and the Social Services Block Grant program. HHS said that the impacted states are California, Colorado, Illinois, Minnesota, and New York.
“For too long, Democrat-led states and Governors have been complicit in allowing massive amounts of fraud to occur under their watch,” said Andrew Nixon, a HHS spokesperson. “Under the Trump Administration, we are ensuring that federal taxpayer dollars are being used for legitimate purposes. We will ensure these states are following the law and protecting hard-earned taxpayer money.”
HHS announced last month that all 50 states will have to provide additional levels of verification and administrative data before they receive more funding from the Child Care and Development Fund following a series of fraud schemes at Minnesota day care centers run by Somali residents.
“The Trump Administration is using the moral guise of eliminating ‘fraud and abuse’ to undermine essential programs and punish families and children who depend on these services to survive, many of whom have no other options if this funding disappears,” Kristin McGuire, president of Young Invincibles, a young-adult nonprofit economic advocacy group, said in a statement. “This is yet another ideologically motivated attack on states that treats millions of families as pawns in a political game.”
California pushes back
Newsom’s office brushed off Trump’s post about fraud allegations, calling the president “a deranged, habitual liar whose relationship with reality ended years ago.” Newsom himself said he welcomes federal fraud investigations in the state, adding in an interview on MS NOW that aired Monday night: “Bring it on … if he has some unique insight and information, I look forward to partnering with him. I can’t stand fraud.”
However, Newsom said cutting off funding hurts hard-working families who rely on the assistance.
“You want to support families? You believe in families? Then you believe in supporting child care and child care workers in the workforce,” Newsom told MS NOW.
California has not been notified of any changes to federal child care or social services funding. H.D. Palmer, a spokesperson for the Department of Finance, said the only indication from Washington that California’s childcare funding could be in jeopardy was the vague 5 a.m. post Tuesday by the president on Truth Social.
“The president tosses these social media missives in the same way Mardi Gras revelers throw beads on Bourbon Street — with zero regard for accuracy or precision,” Palmer said.
In the current state budget, Palmer said California’s childcare spending is $7.3 billion, of which $2.2 billion is federal dollars. Newsom is set to unveil his budget proposal Friday for the upcoming fiscal year that begins July 1, which will mark the governor’s final spending plan before he terms out. Newsom has acknowledged that he is considering a 2028 bid for president, but has repeatedly brushed aside reporters’ questions about it, saying his focus remains on governing California.
Palmer said while details about the potential threat to federal childcare dollars remain unclear, what is known is that federal dollars are not like “a spigot that will be turned off by the end of the week.”
“There is no immediate cutoff that will happen,” Palmer said.
Since Trump took office, California has filed dozens of legal actions to block the president’s policy changes and funding cuts, and the state has prevailed in many of them.
What happened in Minnesota
Federal prosecutors say Minnesota has been hit by some of the largest fraud schemes involving state-run, federally funded programs in the country. Federal prosecutors estimate that as much as half of roughly $18 billion paid to 14 Minnesota programs since 2018 may be fraudulent, with providers accused of billing for services never delivered and diverting money for personal use.
The scale of the fraud has drawn national attention and fueled the Trump administration’s decision to freeze child care funds while demanding additional safeguards prior to doling out money, moves that critics say risk harming families who rely on the programs. Gov. Tim Walz has ordered a third-party audit and appointed a director of program integrity. Amid the fallout, Walz announced he will not seek a third term.
Outrage over the fraud reached a fever pitch in the White House after a video posted online by an influencer purported to expose extensive fraud at Somali-run child care centers in Minnesota. On Monday, that influencer, Nick Shirley, posted on the social media site X, “I ENDED TIM WALZ,” a claim that prompted calls from conservative activists to shift scrutiny to Newsom and California next.
Right-wing podcaster Benny Johnson posted on X that his team will be traveling to California next week to show “how criminal California fraud is robbing our nation blind.”
California officials have acknowledged fraud failures in the past, most notably at the Employment Development Department during the COVID-19 pandemic, when weakened safeguards led to billions of dollars in unemployment payments later deemed potentially fraudulent.
An independent state audit released last month found administrative vulnerabilities in some of California’s social services programs but stopped short of alleging widespread fraud or corruption. The California State Auditor added the Department of Social Services to its high-risk list because of persistent errors in calculating CalFresh benefits, which provides food assistance to those in need — a measure of payment accuracy rather than criminal activity — warning that federal law changes could eventually force the state to absorb billions of dollars in additional costs if those errors are not reduced.
What’s at stake in California
The Trump administration’s plans to freeze federal child care, welfare and social services funding would impact $7.3 billion in Temporary Assistance for Needy Families funding, $2.4 billion for child care subsidies and more than $800 million for social services programs in the five states.
The move was quickly criticized as politically motivated because the targeted states were all Democrat-led.
“Trump is now illegally freezing childcare and other funding for working families, but only in blue states,” state Sen. Scott Wiener (D-San Francisco) said in a statement. “He says it’s because of ‘fraud,’ but it has nothing to do with fraud and everything to do with politics. Florida had the largest Medicaid fraud in U.S. history yet isn’t on this list.”
Added California Assembly Speaker Robert Rivas: “It is unconscionable for Trump and Republicans to rip away billions of dollars that support child care and families in need, and this has nothing to do with fraud. California taxpayers pay for these programs — period — and Trump has no right to steal from our hard-working residents. We will continue to fight back.”
Times staff writer Daniel Miller contributed to this report.
SACRAMENTO — A far-reaching proposal to outlaw hydraulic fracturing and ban oil and gas wells from operating near homes, schools and healthcare facilities failed in the California Legislature on Tuesday, a major setback for progressive leaders who hail the state as the nation’s bellwether on environmental protection.
Gov. Gavin Newsom in September called on state lawmakers to ban fracking and voiced his support for safety buffer zones around wells, saying they posed a significant health threat to vulnerable Californians, primarily in predominantly Black and Latino communities near well fields and refineries.
The legislation that failed Tuesday was much more ambitious than what Newsom proposed, however, and faced fierce opposition from California’s oil industry, which holds tremendous political sway among Central Valley legislators, along with trade unions, a powerful force within the Democratic Party.
The bill would have banned fracking and a series of other well injection methods used to extract oil — all opposed by environmental activists. It would also have prohibited wells from operating within 2,500 feet of homes, schools, healthcare facilities and other populated areas. Newsom’s proposals were limited to a ban only on fracking and the consideration of a buffer zone.
“Obviously I’m very disappointed,” said state Sen. Scott Wiener (D-San Francisco), one of the legislators who introduced the legislation. “California really has not done what it needs to do in terms of addressing the oil problem. We have communities that are suffering right now, and the Legislature has repeatedly failed to act.”
Wiener’s bill failed to receive the five votes necessary to pass the Senate’s Natural Resources and Water Committee, the proposal’s first stop in the legislative process. State Sen. Susan Eggman (D-Stockton) was the only Democrat to vote against the legislation, but it failed largely because two other Democrats, state Sens. Bob Hertzberg of Van Nuys and Ben Hueso of San Diego, did not cast votes.
After the vote, Hertzberg said he supported California’s efforts to wean itself from fossil fuels but argued the bill did “nothing to foster that transition by reducing demand for oil in our state or in the global marketplace.”
Rudy Gonzalez of the San Francisco Building and Construction Trades Council made a similar argument when testifying by video during the committee hearing, saying the legislation would lead to the loss of thousands of well-paying union jobs at California’s refineries and in other petroleum-related industries.
“It doesn’t do for workers or for the environment what it claims,” Gonzalez said. “Our domestic supply factors in 32 million cars and trucks that are on our roads today. Ending extraction in California won’t end the supply or the demand for that. In fact, they’ll shift production outside of California or supply avenues to other nations.”
Oil industry officials have argued that a mandate for 2,500-foot buffer zones around wells would effectively shut down the vast majority of oil production in California. California was the seventh-largest oil-producing state in 2020, according to the U.S. Energy Information Administration.
At the beginning of Tuesday’s hearing, Wiener acknowledged that the bill would have a major impact on oil production in California and faced major obstacles in the Capitol. But he said he was open to amending the bill and having a conversation with opponents of the legislation.
Before the hearing, Wiener amended the bill to extend the period of time allowed to phase out fracking and other forms of ejection wells. But that did little to temper opposition. On Tuesday, four senators on the committee, all Democrats, voted in favor of the bill while three senators opposed it — the proposal needed five votes to pass the nine-member committee.
Wiener said he is weighing whether to ask the committee to reconsider the legislation. He vowed to continue pushing the bill, in total or in part, during the current session and said his top priority is establishing health and safety buffer zones around oil and gas wells.
“If there is a path to narrowing the bill and getting the votes, we are very open to doing that,” he said. “We’ll have to see what’s possible.”
Even if the bill cannot be revived, buffer zones may still be mandated by administrative action. At the direction of an executive order by Newsom, officials with the state Department of Conservation have been holding public hearings in person and online throughout the year on proposed public health and safety protections for communities near oil and gas operations, including imposing possible buffer zones around wells. Those proposed regulations are expected to be made public this spring.
From the outset, the fracking ban and mandatory buffer zones created a fissure within the Legislature’s Democratic majority, with liberal legislators from coastal areas and major cities seeing the proposals as essential to combat climate change and protect vulnerable families, and business-friendly lawmakers and those from inland areas worried about the potential loss of tens of thousands of jobs and the effect on local economies in California’s oil-rich San Joaquin Valley.
A proposed fracking moratorium stalled in the Legislature in 2014, and just last year a bill calling for less stringent buffer zone requirements around oil and gas wells failed in the same Senate committee as this year’s bill.
Eggman voted in favor of the setbacks proposed in last year’s bill but against this legislation, saying it would “shut down oil production in California.” Most of her Central Valley constituents cannot afford expensive electric cars, she said.
“I’m just thinking about the rest of California and in my district: the people who commute, the people who have to drive trucks, the people who drive tractors. None of those are electric,” she said.
California Rep. Doug LaMalfa (R-Richvale) has died, GOP leadership confirmed in a social media post Tuesday morning.
“Jacquie and I are devastated about the sudden loss of our friend, Congressman Doug LaMalfa. Doug was a loving father and husband, and staunch advocate for his constituents and rural America,” said Rep. Tom Emmer (R-Minn.), the House majority whip, in an X post. “Our prayers are with Doug’s wife, Jill, and their children.”
LaMalfa, 65, was a rice farmer from Oroville and staunch Trump supporter who had represented his Northern California district for the past 12 years. His seat was one of several that was in jeopardy under the state’s redrawn districts approved by voters with Prop 50.
LaMalfa’s death reduces the GOP’s already slim House majority to 218-213.
SACRAMENTO — A California lawmaker introduced a bill Monday to crack down on fake liens filed against politicians, court employees and businesses that can force victims to spend thousands of dollars in legal fees to clear their names and repair their credit.
The bill by Assemblymember Diane Papan (D-San Mateo) comes after a Times investigation in July found lien claims filed with the secretary of state’s office are used by antigovernment agitators, including so-called “sovereign citizens,” for conspiracy-laced demands and vendettas. The U.S. Justice Department and the nonpartisan Congressional Research Service have called fake liens a form of “paper terrorism.”
“This isn’t an exotic or onerous fix,” Papan said Monday after the state Legislature returned to the Capitol to begin a new session. “The fact is that someone can do irreparable damage to someone’s reputation and their ability to have good credit. And we can certainly do better in California.”
Liens are recorded in state Uniform Commercial Code databases across the country, with the public filings intended to standardize interstate transactions and alert creditors about business debts and financial obligations.
The Times’ investigation found that state databases of UCC liens, which were designed to be straightforward and quick to file, are inherently vulnerable to abuse. A single false filing can claim an individual or business owes debts worth hundreds of millions or even trillions of dollars. Others flood victims with repeated filings that make it appear they are entangled in complex financial disputes.
In California, a lien recorded with the secretary of state costs $5 to file, but removing a fraudulent one from the public database requires a court order, which can cost thousands in attorney and court fees. The state does not notify a person when a lien names them as the debtor, allowing fake filings to remain in California’s public database for years before a victim discovers them. Many politicians and government employees learned from The Times that they had been targeted with spurious filings.
Under Assembly Bill 501, the secretary of state’s office would be required to notify individuals within 21 days if they are named as a debtor in a lien filing. The legislation also would delay court fees until the end of judicial proceedings.
In cases where the lien is found to be fraudulent, the bill would make the guilty party liable to the victim for three times the amount of court fees paid. The bill would also increase the maximum civil penalty for filing a fraudulent lien to $15,000, up from $5,000. California law already makes it a felony to knowingly file a fake lien.
“Victims of these fraudulent filings often have no idea they’ve been targeted until real harm is done,” Papan said. “That harm can look like wrecked credit, failed background checks, or failed mortgage applications while the people committing the fraud face relatively little risk or consequence.”
The National Assn. of Secretaries of State said the vast majority of UCC filings are legitimate. But, in a 2023 report, the association said that “fraudulent or bogus filings” were a widespread and persistent problem across the country, warning that they “can create serious financial difficulties for victims.”
One high-profile California public official who was unaware he had been named in a UCC claim until contacted by The Times said he was alarmed to find that the filing contained his home address. The Times identified hundreds of other UCC filings with no apparent legal basis that also listed the home addresses of government officials and prominent power-brokers, effectively turning the state’s public database into a doxing tool.
In the debt claims, individuals falsely allege government officials owe them money or property, in some cases claiming ownership of the victim’s home. Other fake filings target businesses with claims of being owed cash and cars. In some cases, individuals file dozens or hundreds of fake liens. Paid online classes associated with fringe antigovernment ideologies teach people how to record UCC liens, often promoting the filings as a way to pressure perceived adversaries or falsely claiming that the filings can erase debts.
Michael Rogers, a San Diego attorney who represents auto dealers targeted by fake filings, said AB 501 would “greatly curb some of the systemic abuses used by the sovereign citizen movement and others” who file unsupported or fraudulent lien notices.
Consumer credit expert John Ulzheimer said in July that liens can complicate a person’s ability to obtain a mortgage or a company’s chances of securing lines of credit. In some cases, he said, the filings can derail job applications for positions that require thorough background checks.
Papan said her bill would restore “balance and accountability” to the UCC system, ensuring it remains a trusted commercial tool while adding protections for Californians targeted by fraudulent filings.
“We can’t allow the Uniform Commercial Code to be used as a weapon,” Papan said. “The fact that these forms are being used to damage the integrity of commercial transactions is very troubling.”
If you asked Los Alamitos basketball coach Nate Berger to be honest about early expectations for a team that returned zero starters, he would have said a 1-9 start wouldn’t have been surprising.
But the Griffins, loaded with backups from last season and members of a good junior varsity team, are 8-6 going into an early Sunset League showdown with 16-1 Corona del Mar on Monday.
Tyler Lopez has been leading the way. The senior committed to Jessup University in Northern California is averaging 17 points and eight rebounds. Sophomore Isaiah Williamson, younger brother of former Eastvale Roosevelt standout Issac Williamson, has been making major contributions.
Berger has been pleased with his players’ growing experience and confidence after some early season struggles adjusting.
“I was pleasantly surprised how my team responded and some of these young players have jelled,” he said.
This is a daily look at the positive happenings in high school sports. To submit any news, please email eric.sondheimer@latimes.com.
Under the guidance in question, which has since been withdrawn, teachers and school staff were instructed to recognise a student’s gender identity changes and desired pronouns. It also prohibited disclosing students’ identities to their parents or guardians without their consent.
In the suit, the two teachers alleged that the policy violated their free speech and religious beliefs
After nearly a two-year legal battle, which included the case being converted to a class-action suit, US District Judge Roger Benitez ruled in favour of the plaintiffs on 23 December.
Under the order, employees in the California statewide education system are prohibited from “misleading the parent or guardian of a minor child in the education system about their child’s gender presentation at school.”
This includes “directly lying” to the student’s parent or guardian, preventing the parent or guardian from accessing the student’s educational records, and using “a different set of preferred pronouns/names when speaking with the parents than is being used at school.”
Shortly after Judge Benitez’s ruling, the state filed an appeal with the 9th Circuit Court of Appeals.
“A stay pending appeal – and at a minimum a brief stay to seek relief from the Court of Appeals – is warranted in this case,” the state wrote in the request.
“The Court has issued a statewide injunction that abruptly enjoins State Defendants from enforcing long-standing state laws that protect vulnerable transgender and gender nonconforming students.
“If the Orders are allowed to stay in effect before the Court of Appeals has a chance to review them, they would irrevocably alter the status quo and will create chaos and confusion among students, parents, teachers, and staff at California’s public schools.”
At the start of the month, the appeals court granted the state a short-term administrative stay of ruling, per Education Week.
The recent development comes more than a year after California Governor Gavin Newsom signed the LGBTQIA+ inclusive SAFETY Act into law, which stops school districts from requiring staff to share information about a student’s sexual orientation or gender identity to parents.
It also protects teachers and other school employees from retaliation, like being fired, if they choose not to out a student’s sexuality or gender identity to parents.
Over the last few days, LGBTQIA+ advocates and organisations have called out Judge Benitez’s rulling.
Christine Parker, senior staff attorney with the Gender, Sexuality, and Reproductive Justice Project at the ACLU Foundation of Southern California, said: “This decision denies the realities the California Legislature recognised when it adopted the SAFETY Act last year, and the Student Success and Opportunity Act back in 2013, to help ensure all students feel safe and respected at school, even if they are not ready or able to be out at home or are navigating a less-than-supportive family dynamic.
“A culture of outing harms everyone—students, families, and school staff alike—by removing opportunities to build trust. LGBTQ+ students deserve to decide on their own terms if, when, and how to come out, and to be able to be themselves at school.”
“The California Legislative LGBTQ Caucus strongly condemns the recent ruling by Judge Benitez in Mirabelli v. Olson. While the decision formally addresses a narrow Escondido Union School District policy, it deliberately injects confusion into the public understanding of the SAFETY Act (AB 1955) and signals an alarming willingness to undermine long-standing constitutional rights to privacy and nondiscrimination protections across California law,” the group wrote.
As a stunned world processes the U.S. government’s sudden intervention in Venezuela — debating its legality, guessing who the ultimate winners and losers will be — a company founded in California with deep ties to the Golden State could be among the prime beneficiaries.
Venezuela has the largest proven oil reserves on the planet. Chevron, the international petroleum conglomerate with a massive refinery in El Segundo and headquartered, until recently, in San Ramon, is the only foreign oil company that has continued operating there through decades of revolution.
Other major oil companies, including ConocoPhillips and Exxon Mobil, pulled out of Venezuela in 2007 when then-President Hugo Chávez required them to surrender majority ownership of their operations to the country’s state-controlled oil company, PDVSA.
But Chevron remained, playing the “long game,” according to industry analysts, hoping to someday resume reaping big profits from the investments the company started making there almost a century ago.
Looks like that bet might finally pay off.
In his news conference Saturday, after U.S. Special Forces snatched Venezuelan President Nicolás Maduro and his wife in Caracas and extradited them to face drug-trafficking charges in New York, President Trump said the U.S. would “run” Venezuela and open more of its massive oil reserves to American corporations.
“We’re going to have our very large U.S. oil companies, the biggest anywhere in the world, go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure, and start making money for the country,” Trump said during a news conference Saturday.
While oil industry analysts temper expectations by warning it could take years to start extracting significant profits given Venezuela’s long-neglected, dilapidated infrastructure, and everyday Venezuelans worry about the proceeds flowing out of the country and into the pockets of U.S. investors, there’s one group who could be forgiven for jumping with unreserved joy: Chevron insiders who championed the decision to remain in Venezuela all these years.
But the company’s official response to the stunning turn of events has been poker-faced.
“Chevron remains focused on the safety and well-being of our employees, as well as the integrity of our assets,” spokesman Bill Turenne emailed The Times on Sunday, the same statement the company sent to news outlets all weekend. “We continue to operate in full compliance with all relevant laws and regulations.”
Turenne did not respond to questions about the possible financial rewards for the company stemming from this weekend’s U.S. military action.
Chevron, which is a direct descendant of a small oil company founded in Southern California in the 1870s, has grown into a $300-billion global corporation. It was headquartered in San Ramon, just outside of San Francisco, until executives announced in August 2024 that they were fleeing high-cost California for Houston.
Texas’ relatively low taxes and light regulation have been a beacon for many California companies, and most of Chevron’s competitors are based there.
Chevron began exploring in Venezuela in the early 1920s, according to the company’s website, and ramped up operations after discovering the massive Boscan oil field in the 1940s. Over the decades, it grew into Venezuela’s largest foreign investor.
The company held on over the decades as Venezuela’s government moved steadily to the left; it began to nationalize the oil industry by creating a state-owned petroleum company in 1976, and then demanded majority ownership of foreign oil assets in 2007 under Chávez.
Venezuela has the world’s largest proven crude oil reserves — meaning they’re economical to tap — about 303 billion barrels, according to the U.S. Energy Information Administration.
But even with those massive reserves, Venezuela has been producing less than 1% of the world’s crude oil supply. Production has steadily declined from the 3.5 million barrels per day pumped in 1999 to just over 1 million barrels per day now.
Currently, Chevron’s operations in Venezuela employ about 3,000 people and produce between 250,000 and 300,000 barrels of oil per day, according to published reports.
That’s less than 10% of the roughly 3 million barrels the company produces from holdings scattered across the globe, from the Gulf of Mexico to Kazakhstan and Australia.
But some analysts are optimistic that Venezuela could double or triple its current output relatively quickly — which could lead to a windfall for Chevron.
George Skelton and Michael Wilner cover the insights, legislation, players and politics you need to know in 2024. In your inbox Monday and Thursday mornings.
SACRAMENTO — Congratulations, you survived 2025. What will the new year bring? Joy and prosperity for all, hopefully, but it’s hard to say.
Few in California could have predicted some of the most life-changing events of 2025 — the deadly Los Angeles area wildfires, the Trump administration’s militant, often inhumane immigration crackdown and an obscure congressional redistricting fight that could alter the balance of power in Washington.
With that in mind, California can expect one of 2026’s most consequential stories to be the turmoil in Sacramento over the entrenched state budget deficit — which will be compounded by the massive federal healthcare cuts by the Trump administration.
Happy New Year! This is Phil Willon, the California Politics editor for the Los Angeles Times, filling in for columnist George Skelton. Along with the state budget crisis, 2026 will bring a wide-open race for governor — and the person the candidates hope to replace, Gov. Gavin Newsom, is flirting with a run for president in 2028 and has just a year left in his final term to deliver on all his promises. So buckle up and visit latimes.com early and often.
An $18-billion problem
The California Legislature returns to work Monday for the 2026 session, and a major financial headache awaits.
The Legislative Analyst’s Office estimates that the state will have an $18 billion budget shortfall in the upcoming fiscal year – $5 billion higher than what the Newsom administration predicted in June.
As Times reporter Katie King reported earlier, state revenue has been improving, but a shortfall is still expected. That’s because mandatory spending requirements under Proposition 98, which sets minimum annual funding for public schools, and Proposition 2, which specifies reserve deposits and debt payments, almost entirely offset any gains, according to the legislative analysis.
And it gets worse. The LAO said that, starting in 2027-28, California’s structural deficits are expected to grow to about $35 billion annually “due to spending growth continuing to outstrip revenue growth.”
The solution? Cut spending and/or increase revenue, the LAO report says.
But cut what, and raise money how? That’s up to Newsom and the Legislature to decide, and their difficult task will begin later this week when the governor releases his proposed budget.
Poking the billionaire
One controversial idea — outside of the legislative process — already is being kicked around.
A November ballot measure proposed by a labor organization, the Service Employees International Union-United Healthcare Workers West, would impose a one-time 5% wealth tax on billionaires that could raise $100 billion for healthcare programs. Opponents say it will drive wealthy, taxpaying, job-creating, economy-driving Californians out of the state.
The measure has yet to qualify for the November ballot but will receive ample attention regardless.
The California Budget & Policy Center estimates that as many as 3.4 million Californians could lose Medi-Cal coverage, more rural hospitals could close and other healthcare services would be slashed unless a new funding source is found.
Federal cuts to healthcare
If California does not backfill those federal cuts by raising taxes, or other creative means, costs for the state will still increase, according to the Legislative Analyst’s Office. That seems counterintuitive, since millions of Californians may lose coverage. But under the “Big Beautiful Bill,” cuts to federal cost sharing and a drop in health provider tax revenue will far outpace any potential cost savings for the state.
Newsom’s possible White House run will ensure that California’s budget shortfall and liberal policies it spends money on will whip up the nation’s caustic partisan divide. Near the top of the list will be California’s decision to extend state-sponsored healthcare coverage to low-income, undocumented immigrants. The expansion has cost the state billions and drawn sharp criticism from Republicans and, last year, Newsom and the Democratic-led Legislature reduced the expansion of state-sponsored healthcare to those immigrants due to the high cost.
On top of that, the monthly premiums for federally subsidized plans available on the Covered California exchange — often referred to as Obamacare — will soar by 97% on average for 2026. That’s due to decisions by the Republican-led Congress and Trump not to extend federal subsidies for that coverage. State officials estimate that roughly 400,000 Californians will drop their coverage under the program because of the higher cost. And California counties are ill prepared to step into the breach, as KFF Health News recently reported.
Needless to say, the healthcare situation will be extremely volatile in 2026, which will make the state’s upcoming high-stakes budget process even more unpredictable.
California has tried all manner of design in choosing its governor.
Democrat Gray Davis, to name a recent example, had an extensive background in government and politics and a bland demeanor that suggested his first name was also a fitting adjective.
In the end, however, their political fates were the same. Both left office humbled, burdened with lousy poll numbers and facing a well of deep voter discontent.
There are roughly a dozen major candidates for California governor in 2026 and, taken together, they lack even a small fraction of Schwarzenegger’s celebrity wattage.
Nor do any have the extensive Sacramento experience of Davis, who was a gubernatorial chief of staff under Jerry Brown before serving in the Legislature, then winning election as state controller and lieutenant governor.
That’s not, however, to disparage those running.
The contestants include a former Los Angeles mayor, Antonio Villaraigosa; two candidates who’ve won statewide office, schools Supt. Tony Thurmond and former Controller Betty Yee; two others who gained national recognition during their time in Congress, Katie Porter and Eric Swalwell; and Riverside County’s elected sheriff, Chad Bianco.
The large field offers an ample buffet from which to choose.
The rap on this particular batch of hopefuls is they’re a collective bore, which, honestly, seems a greater concern to those writing and spitballing about the race than a reflection of some great upwelling of citizens clamoring for bread and circuses.
With a governor seemingly more focused on his personal agenda, a 2028 bid for president, than the people who put him in office, many said they’d like to replace Gavin Newsom with someone who will prioritize California and their needs above his own.
“Why does it take so long to do simple things?” asked one of those voters, the Bay Area’s Michael Duncan, as he lamented his pothole-ridden, 120-mile round-trip commute between Fairfield and an environmental analyst job in Livermore.
The answer is not a simple one.
Politics are messy, like any human endeavor. Governing is a long and laborious process, requiring study, deliberation and the weighing of competing forces. Frankly, it can be rather dull.
Certainly the humdrum of legislation or bureaucratic rule-marking is nothing like the gossipy speculation about who may or may not bid to lead California as its 41st governor.
Why else was so much coverage devoted to whether Sen. Alex Padilla would jump into the gubernatorial race — he chose not to — and the possible impact his entry would have on the contest, as opposed to, say, his thinking on CEQA or FMAP?
(The former is California’s much-contested Environmental Quality Act; the latter is the formula that determines federal reimbursement for Medi-Cal, the state’s healthcare program for low-income residents.)
Just between us, political reporters tend to be like children in front of a toy shop window. Their bedroom may be cluttered with all manner of diversion and playthings, but what they really want is that shiny, as-yet unattained object — Rick Caruso! — beckoning from behind glass.
Soon enough, once a candidate has entered the race, boredom sets in and the speculation and desire for someone fresh and different starts anew. (Will Atty. Gen. Rob Bonta change his mind and run for governor?)
For their part, many voters always seem to be searching for some idealized candidate who exists only in their imagination.
Someone strong, but not dug in. Willing to compromise, but never caving to the other side. Someone with the virginal purity of a political outsider and the intrinsic capability of an insider who’s spent decades cutting deals and keeping the government wheels spinning.
They look over their choices and ask, in the words of an old song, is that all there is? (Spoiler alert: There are no white knights out there.)
His freewheeling political rallies and frothy social media presence were, and continue to be, a source of great glee to his fans and followers.
His performance as president has been altogether different, and far less amusing.
If the candidates for California governor fail to light up a room, that’s not such a bad thing. Fix the roads. Make housing more affordable. Help keep the place from burning to the ground.
The fiery debate about a proposed ballot measure to tax California’s billionaires has sparked some soul-searching across the state.
While the idea of a one-time tax on more than 200 people has a long way to go before getting onto the ballot and would need to be passed by voters in November, the tempest around it captures the zeitgeist of angst and anger at the core of California. Silicon Valley is minting new millionaires while millions of the state’s residents face the loss of healthcare coverage and struggle with inflation.
Supporters of the proposed billionaire tax say it is one of the few ways the state can provide healthcare for its most vulnerable. Opponents warn it would squash the innovation that has made the state rich and prompt an exodus of wealthy entrepreneurs from the state.
The controversial measure is already creating fractures among powerful Democrats who enjoy tremendous sway in California. Progressive icon Sen. Bernie Sanders (I-Vt.) quickly endorsed the billionaire tax, while Gov. Gavin Newsom denounced it .
The Golden State’s rich residents say they are tired of feeling targeted. Their success has not only created unimaginable wealth but also jobs and better lives for Californians, they say, yet they feel they are being punished.
“California politics forces together some of the richest areas of America with some of the poorest, often separated by just a freeway,” said Thad Kousser, a political science professor at UC San Diego. “The impulse to force those with extreme wealth to share their riches is only natural, but often runs into the reality of our anti-tax traditions as well as modern concerns about stifling entrepreneurship or driving job creation out of the state.”
The state budget in California is already largely dependent on income taxes paid by its highest earners. Because of that, revenues are prone to volatility, hinging on capital gains from investments, bonuses to executives and windfalls from new stock offerings, and are notoriously difficult for the state to predict.
The tax proposal would cost the state’s richest residents about $100 billion if a majority of voters support it on the November ballot.
Supporters say the revenue is needed to backfill the massive federal funding cuts to healthcare that President Trump signed this summer. The California Budget & Policy Center estimates that as many as 3.4 million Californians could lose Medi-Cal coverage, rural hospitals could shutter and other healthcare services would be slashed unless a new funding source is found.
On social media, some wealthy Californians who oppose the wealth tax faced off against Democratic politicians and labor unions.
An increasing number of companies and investors have decided it isn’t worth the hassle to be in the state and are taking their companies and their homes to other states with lower taxes and less regulation.
“I promise you this will be the final straw,” Jessie Powell, co-founder of the Bay Area-based crypto exchange platform Kraken, wrote on X. “Billionaires will take with them all of their spending, hobbies, philanthropy and jobs.”
Proponents of the proposed tax were granted permission to start gathering signatures Dec. 26 by California Secretary of State Shirley Weber.
The proposal would impose a one-time tax of up to 5% on taxpayers and trusts with assets, such as businesses, art and intellectual property, valued at more than $1 billion. There are some exclusions, including property.
They could pay the levy over five years. Ninety percent of the revenue would fund healthcare programs and the remaining 10% would be spent on food assistance and education programs.
To qualify for the November ballot, proponents of the proposal, led by the Service Employees International Union-United Healthcare Workers West, must gather the signatures of nearly 875,000 registered voters and submit them to county elections officials by June 24.
The union, which represents more than 120,000 healthcare workers, patients and healthcare consumers, has committed to spending $14 million on the measure so far and plans to start collecting signatures soon, said Suzanne Jimenez, the labor group’s chief of staff.
Without new funding, the state is facing “a collapse of our healthcare system here in California,” she said.
Rep. Ro Khanna (D-Fremont) spoke out in support of the tax.
“It’s a matter of values,” he said on X. “We believe billionaires can pay a modest wealth tax so working-class Californians have the Medicaid.”
The Trump administration did not respond to requests for comment.
The debate has become a lightning rod for national thought leaders looking to target California’s policies or the ultra-rich.
On Tuesday, Sanders endorsed the billionaire tax proposal and said he plans to call for a nationwide version.
“This is a model that should be emulated throughout the country, which is why I will soon be introducing a national wealth tax on billionaires,” Sanders said on X. “We can and should respect innovation, entrepreneurship and risk-taking, but we cannot respect the extraordinary level of greed, arrogance and irresponsibility that is currently being displayed by much of the billionaire class.”
But there isn’t unanimous support for the proposal among Democrats.
Notably, Newsom has consistently opposed state-based wealth taxes. He reiterated his opposition when asked about the proposed billionaires’ tax in early December.
“You can’t isolate yourself from the 49 others,” Newsom said at the New York Times DealBook Summit. “We’re in a competitive environment. People have this simple luxury, particularly people of that status, they already have two or three homes outside the state. It’s a simple issue. You’ve got to be pragmatic about it.”
Newsom has opposed state-based wealth taxes throughout his tenure.
In 2022, he opposed a ballot measure that would have subsidized the electric vehicle market by raising taxes on Californians who earn more than $2 million annually. The measure failed at the ballot box, with strategists on both sides of the issue saying Newsom’s vocal opposition to the effort was a critical factor.
The following year, he opposed legislation by a fellow Democrat to tax assets exceeding $50 million at 1% annually and taxpayers with a net worth greater than $1 billion at 1.5% annually. The bill was shelved before the legislature could vote on it.
The latest effort is also being opposed by a political action committee called “Stop the Squeeze,” which was seeded by a $100,000 donation from venture capitalist and longtime Newsom ally Ron Conway. Conservative taxpayer rights groups such as the Howard Jarvis Taxpayers Assn. and state Republicans are expected to campaign against the proposal.
The chances of the ballot measure passing in November are uncertain, given the potential for enormous spending on the campaign — unlike statewide and other candidate races, there is no limit on the amount of money donors can contribute to support or oppose a ballot measure.
“The backers of this proposed initiative to tax California billionaires would have their work cut out for them,” said Kousser at UC San Diego. “Despite the state’s national reputation as ‘Scandinavia by the Sea,’ there remains a strong anti-tax impulse among voters who often reject tax increases and are loath to kill the state’s golden goose of tech entrepreneurship.”
Additionally, as Newsom eyes a presidential bid in 2028, political experts question how the governor will position himself — opposing raising taxes but also not wanting to be viewed as responsible for large-scale healthcare cuts that would harm the most vulnerable Californians.
“It wouldn’t be surprising if they qualify the initiative. There’s enough money and enough pent-up anger on the left to get this on the ballot,” said Dan Schnur, a political communications professor who teaches at USC, Pepperdine and UC Berkeley.
“What happens once it qualifies is anybody’s guess,” he said.
Lorena Gonzalez, president of the California Federation of Labor Unions, called Newsom’s position “an Achilles heel” that could irk primary voters in places like the Midwest who are focused on economic inequality, inflation, affordability and the growing wealth gap.
“I think it’s going to be really hard for him to take a position that we shouldn’t tax the billionaires,” said Gonzalez, whose labor umbrella group will consider whether to endorse the proposed tax next year.
California billionaires who are residents of the state as of Jan. 1 would be impacted by the ballot measure if it passes . Prominent business leaders announced moves that appeared to be a strategy to avoid the levy at the end of 2025. On Dec. 31, PayPal co-founder Peter Thiel announced that his firm had opened a new office in Miami, the same day venture capitalist David Sacks said he was opening an office in Austin.
Wealth taxes are not unprecedented in the U.S. and versions exist in Switzerland and Spain, said Brian Galle, a taxation expert and law professor at UC Berkeley.
In California, the tax offers an efficient and practical way to pay for healthcare services without disrupting the economy, he said.
“A 1% annual tax on billionaires for five years would have essentially no meaningful impact on their economic behavior,” Galle said. “We’re funding a way of avoiding a real economic disaster with something that has very tiny impact.”
Palo Alto-based venture capitalist Chamath Palihapitiya disagrees. Billionaires whose wealth is often locked in company stakes and not liquid could go bankrupt, Palihapitiya wrote on X.
The tax, he posted, “will kill entrepreneurship in California.”