June 27 (UPI) — Volkswagen is set to cut as many as 100,000 jobs, and end production at four of its plants, as part of a restructuring to better counter Chinese rivals in Europe.
The company is one of several German automakers that is making cuts as Chinese companies gain ground in both Germany and the rest of Europe, The Financial Times and Wall Street Journal reported.
BMW and Mercedes-Benz, as well as Stellantis and Renault, have lost market share in Europe as BYD, Chery and other Chinese brands have surpassed 10% of car sales on the continent after years of slow growth.
Volkswagen already had agreed with its employee’s unions to cut 50,000 jobs in Germany by the end of 2030 as part of making it “more efficient and leaner,” but some experts have questioned whether the increased moves will have their intended effect, the reports said.
“Every European player is losing today,” Thomas Besson, an auto market analyst at Kepler Cheuvreux, told The Times.
“This is a highly challenging situation for European carmakers,” Besson said, “because Chinese [manufacturers] are progressing [in Europe] at a much faster pace than expected, while [European manufacturers] continue to lose volumes in China and face very adverse conditions in the United States, notably due to tariffs.”
Volkswagen, which is Europe’s largest carmaker, would be dropping about 15% of its 660,000-person workforce, in addition to ending production at three Volkswagen plants and one Audi plant, CNBC reported.
The company also plans to reduce investments by about 15% — roughly $148 billion — over the next five years, while also launching new efforts at selling its products to compete with the Chinese companies.
“The entire [Volkswagen] group — including its brands and subsidiaries — must undergo profound change,” a company spokesperson told CNBC.
White House Border Czar Tom Homan speaks during the Faith and Freedom Coalition 2026 Road to Majority Policy Conference at the Washington Hilton on Friday. Photo by Bonnie Cash/UPI | License Photo
Every morning Marisol Winfrey Herrera’s three-and-a-half-year-old daughter Jo reminds her to turn off the tap while washing her hands and brushing her teeth.
When they leave home, she reminds her mother to keep a bottle of ice with them to offer it to homeless people, who they sometimes find wilting in the Tucson heat. At first, they press the ice-filled bottles on the homeless folks to help them revive, then they offer the water to drink and hydrate. At her daycare, Jo is taught water-saving habits to combat Tucson’s soaring heat.
It is what prompted Herrera to join No Desert Data Center, a residents’ group that opposes two large data centres coming up on either side of Tucson – the $3.6bn project on the city’s southeast edge and a $5bn project on its northwest side in the town of Marana, together known as Project Blue.
The group believes these would consume more water and power than the city set in the Sonoran Desert can afford.
“We are in the middle of a 30-year drought, which is now an extreme drought,” says Lisa Shipek, co-executive director of the Watershed Management Group, a Tucson-based nonprofit.
“Water was a unifying theme in our campaign. The Colorado River cuts are looming, and this project would take water away,” Herrera told Al Jazeera.
Water flows in the Colorado River, which provides much of Tucson’s water through the Central Arizona Project canal system, have dropped by 20 percent since the year 2000 compared with water flows in the 20th century due to climate change, melting snow caps and warmer weather, making water cuts to Tucson imminent as the state could face as much as 77 percent water cuts.
“We say Not One Drop for data centres,” says Herrera, speaking of the campaign’s particularly emotive appeal for residents as water cuts get deeper and temperatures rise, with Tucson recording the warmest weather in 125 years last July and August.
Beale Infrastructure, a San Francisco-based company that is owned by investment management company Blue Owl in New York, had asked the city of Tucson to acquire 290 acres that were outside city limits for Project Blue. That would make it the city’s largest water consumer and among its largest power consumers. Beale did not respond to an emailed request for comment.
But at city council meetings, City Councillor Kevin Dahl began seeing hundreds of residents turn up to express their opposition to the project.
“Not for many issues do we get so much response,” he said. Herrera was among those who went.
Pitting environment against unions
At council meetings, Beale executives proposed that Project Blue could be the economic engine the city needed. It would create a few thousand jobs for construction workers, ironmongers, plumbers and other such workers during the construction of the project and a few hundred after that.
“Sometimes people travel as far as Phoenix for work,” Dahl said about Arizona’s largest city, which is nearly a two-hour drive from Tucson.
The project could bring jobs closer. Beale also expected the project to generate nearly $250m in taxes for the city, county and state in the first 10 years.
This left councillors with a difficult decision to make, weighing the project’s economic benefits against allocating it a share of the city’s increasingly scarce water and power.
Tucson residents raised questions in a town hall about whether proposed rate hikes by TEP, their power utility, is due to capacity expansion for data centres [Photo Courtesy Kathleen Dreier]
Activists also raised concerns about whether Tucson Electric Power (TEP), the power utility, would raise rates for consumers so it could expand capacity to provide power for Project Blue. After raising rates by 10 percent in 2023, TEP proposed a 14 percent rate hike in June 2025 for grid upgrades made in the previous year.
Lee Ziesche, an activist from the Democratic Socialists of America who is campaigning to make TEP a public utility, said Project Blue could “lead to higher temperatures and higher rates” because of the heat island effect of the air conditioners and higher rates for power.
She often hears from residents that a rate hike would make it hard to pay bills or put on air conditioning, even as the number of 100-degree Fahrenheit (37.8 degree-Celsius) days has increased in Tucson, which is among the hottest cities in the United States.
The same concerns of needing ramped-up air conditioning would plague data centres too, experts say.
“The viability of data centres in Arizona will always be subject to climate change and heat risks,” says Kate Gordon, chief executive of California Forward, a think tank that works on a sustainable economy.
“The heat in Arizona makes energy less efficient, and servers heat up, so projects will need higher amounts of water and cooling, which developers have to balance against a possibly lower real estate and labour cost,” she said. “I am always amazed at how climate does not figure in business plans.”
Dahl and Andres Cano, a supervisor in Pima County, in which Tucson is located, had discussions with Beale representatives.
“We thought they would go elsewhere if the city did not acquire the land” for the project, Dahl said. Cano also came away with the same impression.
In August 2025, Tucson councillors voted unanimously not to acquire the land for the project or provide it with water and power. In December, Cano became one of only two supervisors in Pima County to oppose the project, and it was approved for construction in an unincorporated part of the county.
“It will create short-term construction jobs for what will ultimately be a project with few wins,” Cano said. “This pitted the environment and unions, but industry is not for unions. This will have just about 100 jobs when it is done.”
With no access to Tucson’s water supply, Beale decided to cool its servers with air conditioners rather than water and use a closed-loop water system, so it would recycle and reuse water.
But Vivek Bharathan, a spokesperson for the No Desert Data Center, said using air conditioners would increase power usage.
Nearly half of TEP’s power comes from fracking, he says. Data centre demand will only mean “more fracking somewhere else, climate and health consequences all along the way”.
The state’s largest data centre
Even as Project Blue was making its way through a fraught approval process, Beale announced another data centre project in the neighbouring farming town of Marana. It was to be spread over 600 acres (242 hectares), twice the size of Project Blue. The area was spread over two farm plots, one owned by the Mormon church and the other by a family trust of city council member, Herb Kai.
This project, too, is slated to bring thousands of construction jobs to a farming town as well as tax revenues.
Tucson residents are protesting upcoming data centres [Photo courtesy Kathleen Dreier]
But when Jackie McGuire, a mother of three and former Wall Street banker, heard about it, she and other residents launched a campaign to stop the land from being rezoned for a data centre. Residents wanted Marana to stay a farming town.
McGuire, who works as a research analyst, said the data centres’ servers and large air conditioners that would be installed to keep them running would raise the project’s cost and make Marana unbearably hot.
Temperatures rose by up to 2.2F (1.22C) downwind from data centres in the Phoenix area, a study published in May had found.
“The heat generated will be like one to two million space heaters,” McGuire says. “It can go up to 112 degrees [44.4C] here already. The heat island effect could make Marana uninhabitable.”
The Marana data centre will be provided power by TEP and Trico, which announced a 7.23 percent rate hike in January.
McGuire and other residents campaigned to have a referendum on whether the land could be rezoned for a data centre. Their plea was not successful, and the city council approved the rezoning of the land.
But the experience of the campaign had invigorated McGuire, and she decided to run for city council herself. The central issue of her campaign is to bring transparency to the data centre’s functioning.
Even as the campaigns in Pima County and Marana raged on, La Osa, the state’s largest data centre project, took shape in Tucson’s neighbouring Pinal County. The 3,300-acre project by the Vermaland real estate group was expected to house 59 data centres and two of its own natural gas facilities, as well as a utility-scale battery storage system.
But residents worried about noise pollution from protracted project construction and a possible increase in power costs.
“I’m worried about the constituents in that area, about the power bills going up, even though you’re saying that they’re going to pay for it,” Pinal County Supervisor Rich Vitiello said in a board of supervisors meeting on May 27.
In the face of such opposition, a La Osa lawyer spoke at the meeting to say the project had been scaled down and would now house 11 data centres from the 59 planned earlier.
‘A straw to the aquifer’
Sharing limited water has long been an emotive issue in the state, and the looming Colorado River cuts and data centre projects have brought such concerns to a head.
Arizona fought one of the longest-running cases, stretching more than three decades, in the US Supreme Court over the sharing of Colorado River water with California. Eventually, Congress adjudicated to provide California with a greater share of the water, which turbocharged its economic growth.
“No water can flow into Tucson and Phoenix unless California gets its full share,” says Jason Robison, co-director of the Gina Guy Center for Land and Water Law at the University of Wyoming College of Law. “Arizona has always been in a tough spot.”
It strengthened the state’s long-held tradition of conservation.
“Arizona communities have been preparing for the drought conditions we see today since 1980,” a spokesperson for the Arizona Department of Water Resources said in an emailed response.
Authorities have curtailed lawns in Tucson, he said, and educational campaigns of the kind Herrera’s daughter underwent are the norm.
It has meant that groundwater reserves go deep, and homeowners are assured of a water supply before it is given to data centres or farms.
“The use by data centres is low compared to farm use, especially alfalfa and hay,” says Eric Kuhn, retired general manager of the Colorado River Water Conservation District and co-author of Science Be Dammed: How Ignoring Inconvenient Science Drained the Colorado River.
However, “data centres are not under the same rules to replenish water” as other industries, says Sharon Medgal, director of the Water Resources Research Center at the University of Arizona. “So it adds a straw to the aquifer.”
Arizona’s governor, Katie Hobbs, who is up for re-election in November, has represented to the Bureau of Reclamation that the state is home to essential industry, including semiconductors, space and data centres, and so needs a higher share of water from the Colorado River. Water, as well as its use for data centres, has been an important issue in primary races across the state.
Construction began for Project Blue at the end of April. No Desert Data Centers’ activists arrived just after dawn to protest. Within days, they found subcontractors bringing in water to control dust on site from construction. County authorities cited Beale.
Then Beale began digging wells on site after reportedly receiving permits allowing that from the Arizona Department of Water Resources. This is likely for 31,000 gallons (more than 117,000 litres) a year, which is just enough for toilets and kitchens and will likely be recycled for reuse after.
“This may not yet be a winning story,” Bharathan, the spokesperson for the No Desert Data Center, said. “But it is a continuing story.”
Volkswagen AG (VWAGY) is considering deeper cost-cutting measures, including eliminating up to 100,000 jobs and closing several factories, as CEO Oliver Blume seeks to improve the automaker’s competitiveness, Manager Magazin reported Friday, citing people familiar with the matter.
TV host Lorraine Kelly saw her team lose jobs in the IT shake up – her show Lorraine has been slashed to 30 weeks a year and gone from an hour to 30 minutes on screen
Lorraine has had a tough year with show cuts and the death of her father. (Image: ITV)
Lorraine Kelly has said the ITV cuts to her show have left her feeling “really rubbish” as rumours continue that she could leave.
The TV host has now been on screen for over 40 years, but said in an interview last year she was “not done yet” despite ITV cutting her hours. As part of daytime ITV budget cuts her show Lorraine has been slashed to 30 weeks a year and gone from an hour to 30 minutes on screen.
Speaking to Saga magazine when asked how she felt about what happened, Lorraine said: “Really rubbish. A lot of my team got made redundant. It was really hard and harder for them. We were very close-knit, but it’s all about budget. All television shows are in the same boat, we’re not alone.”
She went on to insist despite the role and hours changing, it was still “the best job in television” with lovely guests. Lorraine, 66, also spoke in the interview about her beloved dad John dying aged 84 in January and her mum’s health.
She said: “Mum’s health’s bad, but she’s grand. She’s very self-sufficient, like all those war babies are. I always keep an eye on her but don’t let her know I’m keeping an eye on her. I’ve said, ‘You can stay with us any time for as long as you like’. It’s weird. When something massive is happening, your hand still goes to your phone. Dad is – I keep speaking about him in the present tense – really into space. When [NASA’s rocket] Artemis II flew around the moon, I wanted to say, ‘Are you watching this? It’s amazing’. Then you remember he’s not there.”
She added: “When Dad wasn’t well, it brought us closer, supporting each other. It’s been a tough time, but the conversations you have with your relatives you wouldn’t have had otherwise are amazing: you talk about the past and then the wedding – that’s a new beginning.”
Lorraine is upbeat and optimistic despite a series of setbacks in life in recent months. In June 2025 Lorraine was told she was a “national treasure” during an interview and replied: “Well, that’s nice, but it’s only because I’ve been around for so long.
“I’ve been doing telly for over 40 years. It’s mad isn’t it? It’s absolutely crazy. I started in breakfast telly in 1984, and I’m still getting away with it. Extraordinarily.”
Speaking to Tom Kerridge on the Proper Tasty podcast, she added: “40 years in TV last year was incredible. I got a BAFTA. ‘Here’s a BAFTA for being alive’. I thought, ‘Hang on a minute, I’m not done yet’.”
Lorraine was told in person by ITV boss Kevin Lygo about the changes to her show which began at the start of 2026. Reports have suggested she is considering leaving her ITV show in the future and could work for BBC or other broadcasters. She made her Radio 2 debut at Christmas presenting in Jeremy Vine’s midday slot during the festive period. Her presence would also likely give any other channel a ratings boost if she ever moves, as she remains hugely popular.
* The full interview with Lorraine is in July’s Saga magazine, out now.
Smoke billows in the background following a reported Ukrainian drone attack on a fuel facility in Moscow on Thursday. Photo by Stringer/EPA
June 21 (UPI) — The Russian government on Sunday halted fuel sales to civilians and businesses not considered vital to functioning and security in Crimea.
Sergey Aksyonov, the governor of Crimea, announced people would be turned away from gas stations amid a fuel shortage and logistical difficulties related to the war with Ukraine, the BBC reported.
“Further decisions regarding the current situation in the republic’s fuel market will be announced at a later date,” he said in a post on Telegram.
The announcement came amid new attacks by Ukraine on energy and transportation infrastructure on the Crimean Peninsula, Politico reported. Russia illegally annexed the peninsula from Ukraine in 2014, and it has been at the center of fighting between the two countries ever since.
Ukraine has repeatedly targeted Russia’s energy supply in an effort to hobble its defenses and ability to transport troops and machinery. Fuel facilities in the Kerch Strait in Russia’s Krasnodar region have also been attacked.
Aksyonov said a Ukrainian drone attack on an oil depot in Kerch killed four people and injured 28.
Ukrainian President Volodymyr Zelensky said the attack was a “just response to Russia’s brutal attacks.”
“Russia understands only strength, and our long-range strength is certainly working for peace,” he wrote in a post on X.
WASHINGTON — More than $350 million from President Trump’s “big, beautiful bill” has been quietly directed to White House security, an allotment that Democrats warn appears to be helping fund his new ballroom project — despite the president’s insistence that no taxpayer dollars would be used.
The apportionment of funds, which the White House’s Office of Management and Budget made late Friday, comes from two accounts that were intended to provide the U.S. Secret Service with extra money for hiring and training in the aftermath of last year’s assassination attempts on the president, according to Democrats on the Senate Budget Committee. The shift was made days after Congress rejected a $1-billion request for the White House in a Homeland Security bill that Trump signed into law and as the ballroom project is tangled in legal challenges.
Senate Judiciary Committee chairman Chuck Grassley, whose panel initially drafted the security funding, said Thursday he was unaware of the allocations.
“The president said that it was all going to be paid for with private money,” said Grassley (R-Iowa). “And that’s what the country expects.”
Sen. Jeff Merkley of Oregon, the top Democrat on the Senate Budget Committee, charged that Trump’s actions are potentially illegal.
“After repeatedly telling the American people that zero taxpayer dollars would be spent on his gold-plated ballroom boondoggle, now Trump appears to be using a smoke and mirrors tactic,” Merkley said in a statement.
“Trump has proven that he can’t be trusted to follow the law,” Merkley said. “He only cares about wasting taxpayer money on his vanity projects.”
Ballroom project hits setbacks
Trump has faced setbacks in his attempts to build the ballroom on the White House grounds, where he ordered the demolition of the storied East Wing to make way for it.
Touring the construction site last month, Trump called the development a “gift” to the American people. He has repeatedly said that it is being paid for by donations — which has also run into ethics questions from watchdogs concerned about potential corruption and conflicts of interest.
Congress refused the Trump administration’s request for $1 billion for the ballroom last month. The administration wanted the money as part of a Homeland Security bill, but Republican and Democratic lawmakers rejected efforts to tack it on. It became politically toxic at a time when Americans are reeling from inflationary high costs of living.
The Washington Post reported earlier this week that the price tag for the project has ballooned to $600 million, according to a project summary prepared by the contractor, with more than half of that funding coming from taxpayers. Roll Call first reported on the apportionment of new funds for White House security.
At its core, arguments are swirling over how much of the White House project is to bolster security underground, with bomb shelters and a medical facility, and how much of the costs are related to the president’s promised 999-seat ballroom on top.
White House says Trump and donors are paying for the ballroom
A spokesman for the White House said that Trump and donors are funding some $400 million for the ballroom development, and that the coordination with the Secret Service had been noted in the initial announcement of the project.
“The East Wing Modernization Project is inextricably tied to the security of the President, the White House grounds and the certain security infrastructure assets,” said White House spokesman Davis R. Ingle in a statement.
He said the events over the past weekend, including an alleged attack plan targeting the UFC Freedom 250 event at the White House, proves why the project is needed.
“President Trump and generous American patriots are funding the ballroom to the tune of approximately $400 million, which will be a secure and appropriate venue for Presidents for generations to come,” he said.
Government lawyers have argued that the project includes critical security features to guard against a range of threats, such as drones and missiles.
The White House has said in court documents that the East Wing project would be “heavily fortified,” including bomb shelters, military installations and a medical facility underneath the ballroom. The Secret Service told senators last month that $220 million of the White House’s $1-billion request would go to harden the ballroom addition, with bulletproof glass, drone detection technologies, chemical and other systems.
The rest of the money would go for other security improvements, according to a document provided to Senate Republicans, including $180 million for a new, “long overdue” White House visitors screening facility.
Congress holds power of the purse
The shifting funds are certain to ignite growing concerns in Congress over the separation of powers, and the president’s use of federal funds allocated by lawmakers.
The money comes from Trump’s big tax breaks and spending cuts bill that the president signed into law last summer. It provided more than $1 billion for Secret Service resources, including “personnel, training facilities, programming, and technology; and performance, retention, and signing bonuses.”
The provision was uncontested at the time, even as Democrats voted against the broader bill. Democrats said they did not challenge this section or try to strip it out from the package.
Under the Constitution, only Congress has the specific authority to allocate funds across the federal government, including the executive and judicial branch operations.
While the president holds the power to sign — or veto — those appropriation bills, once the funding becomes law, it largely must stand.
The looming impact of federal Medicaid cuts has reignited a long-simmering, costly battle between California’s medical industry and one of its largest health worker unions.
SEIU-United Healthcare Workers West, with about 120,000 members, has put forward two ballot initiatives to cap the pay of medical executives and require community clinics to spend the bulk of their revenues on patient care.
The California Hospital Assn. has responded with its own ballot proposal that would make it tougher for unions to spend money on political initiatives in the future. It would require approval by a union’s rank-and-file membership for any spending of $1 million or more on statewide measures, or $100,000 or more on local ones.
The competing measures, which have drawn enough verified signatures to qualify for the November ballot, come at a time when the rising cost of healthcare is emerging as a top voter concern.
The Service Employees International Union affiliate has seized upon affordability angst to resurrect a proposal for a cap on healthcare executive compensation, which it has failed to achieve multiple times before. The proposed measure garnered more than 1 million petition signatures.
“This initiative reflects the serious crisis we face and that affordability is a real thing,” said Vikas Saini, president of the Lown Institute, a Massachusetts-based healthcare think tank. “I think it also reflects grassroots anger and a desire to do something.”
Mikey Vaughn, a certified nursing assistant at Cedars-Sinai Medical Center, said the hospital often lacks supplies and staffing levels that he and his colleagues need in order to do their jobs effectively and without undue stress, despite its reputation as the go-to place for the rich and famous.
“The executive pay initiative would, I hope, be used to hire staff and to actually provide better resources for our patients,” he said. Vaughn is also a member of SEIU-UHW’s executive board and political committee.
Thomas Priselac, then-president and CEO of Cedars-Sinai Medical Center, made $8.8 million in fiscal year 2024, according to the organization’s most recent available federal tax filing. Kaiser Permanente’s CEO, Gregory Adams, made nearly $13 million in 2024. Warner Thomas, head of Sutter Health, made just under $12 million.
Cedars-Sinai spokesperson Duke Helfand said the hospital would be unable to recruit and retain physicians, nurses, and specialists if the measure passed, dramatically impairing its ability to provide healthcare.
“Such a scenario would be disastrous not only for Cedars-Sinai but for hospitals across Los Angeles and California,” Helfand said.
The union wants to cap compensation at $450,000 a year for senior hospital and medical group executives, as well as other administrative and managerial staff. However, the initiative does not stipulate how dollars diverted from payroll must be spent.
Carmela Coyle, CEO of the hospital association, called the measure a cynical political ploy.
“It’s bad policy and it’s going to have bad consequences across California,” she said.
Glenn Melnick, a healthcare economist at the University of Southern California, said even if the initiative were fully implemented and pay cuts enacted, he doubts it would reduce the cost of healthcare for patients.
SEIU-UHW does not have an estimated total amount the initiative would claw back from pay packages that exceed the limit.
Opponents of the initiative note that it doesn’t just target executive pay; it would affect medical practitioners who are also managers. That could include chief medical officers and chief nursing officers, as well as heads of surgery, emergency rooms, oncology, obstetrics, cardiology and other specialties, they say.
It would be up to each hospital, health system and physician group to report which staff members exceed the cap and by how much.
Ultimately, who is subject to the pay cap “probably will have to be battled out in court,” Coyle said . “That’s why we are throwing everything we can at it.”
The second SEIU-UHW ballot initiative, on community clinics, is already in court. The California Primary Care Assn., which represents clinics, filed a federal lawsuit in April seeking to invalidate it before it reaches the November ballot.
The proposed measure would require federally designated community clinics to spend at least 90% of their revenues on activities directly related to their mission of providing care for low-income populations. If it were to pass, more than 90% of those clinic organizations would be on the hook for penalties totaling $1.7 billion in the first year alone and “would face similarly crippling penalties every year,” according to a report commissioned by the primary care association and conducted by the Berkeley Research Group, an international consulting company.
Louise McCarthy, president and CEO of the Community Clinic Assn. of Los Angeles County, said many pivotal services the clinics provide — such as translation and transportation — would likely not be counted toward the spending requirement.
“They are targeting a group of what they see as employers and we see as the safety net,” she said.
The lawsuit cites the harm to clinics and claims the proposed spending requirement would interfere with federal authority.
Renée Saldaña, a spokesperson for SEIU-UHW, characterized the lawsuit against the initiative as “a really desperate attempt by the clinic industry to try and avoid accountability.”
SEIU-UHW, proud of its political activism, is also behind a controversial billionaire tax proposal that would impose a one-time 5% levy on California residents with fortunes over $1 billion to backfill the funding gap created by federal cuts coming down the pike under Republicans’ One Big Beautiful Bill Act. The law, passed last July and signed by President Trump, is projected to squeeze nearly $1 trillion from the Medicaid health coverage program for low-income people by 2034, including as much as $30 billion annually in California.
The hospital association, the community clinic group and the California Medical Assn., which represents physicians, are neutral on the wealth tax proposal thus far. But Saldaña said all three of the union’s ballot proposals tie into an overarching strategy to counter the widening healthcare disparities caused by the federal law.
“We believe the primary concern of healthcare providers, including executives, should be to serve the community, heal patients, and not be in healthcare just to enrich themselves,” she said on the proposed pay cap.
Over the years, the union has submitted dozens of local and statewide ballot initiatives, including ones to cap the pay of hospital executives, regulate dialysis clinics, and raise the minimum wage of healthcare workers.
The hospital association calculates that SEIU-UHW has spent nearly $125 million on local and statewide initiatives since 2012. But healthcare industry groups have spent far more opposing them. The hospital association data shows that the union spent nearly $36 million on three ballot proposals to regulate the dialysis industry, but dialysis companies poured in $302 million to defeat them, according to state campaign finance records.
The union’s ongoing political efforts “threaten patient access to quality health care,” according to the hospital association’s ballot initiative, which could limit how much unions spend on future ballot measures.
Saldaña hinted at a possible lawsuit should that measure pass, saying “we don’t see the legal viability” of it. The proposal, she said, is an attempt “to silence the front-line healthcare workers.”
Ultimately, a ballot initiative won’t cure the ills that plague healthcare in the United States, said the Lown Institute’s Saini. What’s needed, he said, is “an evaluation and reimagination of healthcare.”
Wolfson writes for KFF Health News, anational newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF — an independent source of health policy research, polling, and journalism.
SACRAMENTO — Disability rights advocates on Monday gathered outside the state Capitol to push back on Gov. Gavin Newsom’s proposed cuts to in-home supportive services.
“These aren’t just numbers in a budget; these are real people,” said Assemblymember Jeff Gonzalez (R-Indio). “These are children, seniors, veterans and individuals with disabilities whose independence and quality of life depend on these services every single day.”
The In-Home Supportive Services program helps disabled and elderly people remain in their houses by providing in-home care. It pays assistants to help with tasks such as showering, cooking or attending doctor appointments. Newsom’s revised budget proposal, which was unveiled last month, would cut $367.7 million from the program and shift some of that financial burden onto counties.
Gonzalez explained that the issue hits close to home for his family. He said his son has cerebral palsy and a seizure disorder, and relies on assistance to live with dignity.
“Families should not have to wonder every budget season whether the support they rely on will be taken away,” Gonzalez said. “These services should not be treated as bargaining chips in budget negotiations.”
Assemblymember Laurie Davies (R-Laguna Niguel) questioned why a successful state like California would need to enact such cuts.
“It’s hard to go a day without hearing the governor or the administration brag about how we are the fourth-largest economy in the world and yet we can’t fully fund [this program for] the most vulnerable?” Davies said.
The governor has previously explained that difficult decisions must be made as the state could soon face an economic downturn. The budget proposal relies on a tax windfall, largely attributed to the stock market success of artificial intelligence companies, to erase California’s deficit — but some analysts have warned that the AI bubble could burst.
H.D. Palmer, deputy director for external affairs for the California Department of Finance, on Monday said some of the proposed cuts are a byproduct of the federal government’s changes in funding and eligibility for health and human services programs.
The so-called “Big, Beautiful Bill” signed by President Trump last year shifted federal funding away from safety-net programs, he said.
Palmer stressed that state budget negotiations are ongoing.
“Until we land on an agreement, speculation regarding the resolution of any specific differences between the Governor’s budget plan or the Legislature’s respective budget proposals would be premature,” he stated by email.
Monday’s event drew some bipartisan support. Brody Fernandez, communications director for Assemblymember Esmeralda Z. Soria (D-Fresno), said the legislator had been fighting for In-Home Supportive Services funding since she was elected.
Fernandez said his daughter has special needs and her mother had to give up her career to become a full-time caregiver. “This is personal for us and for many of the incredible individuals standing behind me,” he said.
Graham Knaus, chief executive of the California State Assn. of Counties, told The Times that he appreciated efforts to raise awareness about the burden these changes would place on counties.
“We applaud the Senate and Assembly for recognizing counties’ concerns and rejecting this proposal,” he said. “We ask them to hold the line in final negotiations.”
Elizabette Guecamburu, a bookkeeper who has a rare neuromuscular disorder, spoke at Monday’s rally and implored the governor to remember the teachings of their shared alma mater Santa Clara University, a Jesuit-led private school.
“I want him to remember where he came from,” she said, adding that students were taught to value compassion and community. “Don’t forget your Jesuit roots.”
The low-cost airline is reducing the number of flights at 19 airports across Europe, including in the UK, and passengers have been warned to check their itineraries and alternative routes
Ryanair has cut flights from 19 airports (Image: NurPhoto, NurPhoto via Getty Images)
Ryanair has slashed flights at 19 airports across Europe, including in the UK, ahead of its summer timetable.
The decision comes as the budget carrier attempts to streamline its operations and tackle seasonal overcapacity, according to Travel and Tour World.
Travellers departing from or arriving at the airports facing reductions must verify their schedules to confirm their booking remains valid.
Full list of airports facing cuts:
United Kingdom
London Stansted
Manchester
Ireland
Germany
Berlin Brandenburg
Cologne Bonn
Hamburg
Italy
Portugal
Belgium
France
Poland
Hungary
Romania
Bulgaria
Spain
The budget carrier has implemented the reductions to optimise its strategic network, ease economic pressures and manage rising costs.
The widespread cancellations form part of the airline’s efforts to safeguard profitability as the fuel crisis continues to fuel inflation worries.
The cuts come after Brits heading to Europe were caught in hours-long airport queues, with some passengers reportedly missing flights as new border checks continue to cause disruption across the EU.
The delays come following the rollout of the EU’s Entry/Exit System (EES), which officially launched on October 12, 2025. Under the new system, non-EU travellers including Brits are required to register fingerprints and have their photograph taken when entering or leaving the Schengen area.
Harare, Zimbabwe – Precious Mvundura woke up with joint pain, a high fever and a pounding headache on a chilly autumn morning in eastern Zimbabwe.
The 37-year-old initially thought it was just the flu. But when the headache persisted for three days, she became worried.
Her five-year-old son had also fallen ill and was sweating heavily.
In early May, the pair sought help from a village health worker in Chishakwe, a rural farming community outside Zimbabwe’s third-largest city, Mutare. Both tested positive for malaria.
“I felt relieved,” Mvundura told Al Jazeera.
“From the moment I took that medication, I started getting better.”
Her son has also recovered and is back in school.
Their ordeal comes as malaria cases and deaths surge across Zimbabwe after US funding cuts disrupted key malaria control programmes.
Shortly after returning to office for a second term in 2025, US President Donald Trump slashed foreign aid funding, including programmes backed by the United States Agency for International Development (USAID). In Zimbabwe, the cuts disrupted tuberculosis, HIV/AIDS and malaria research, prevention and treatment programmes.
Among the affected initiatives were the Zimbabwe Entomological Support Programme in Malaria (ZENTO) at Africa University in Mutare, which provided scientific research to support the country’s National Malaria Control Programme, and the Zimbabwe Assistance Programme in Malaria II (ZAPIM II), which helped strengthen malaria diagnosis, treatment and prevention in high-burden districts.
USAID had disbursed $270m for health and agriculture programmes in Zimbabwe in 2024.
Malaria cases jumped to 65,399 between January and April 2026, up from 36,000 recorded during the same period in 2025 and 17,000 in 2024, according to Zimbabwe’s Ministry of Health National Malaria Control Programme weekly surveillance report.
Deaths have also risen sharply, reaching 174 between January and April 2026, compared with 85 during the same period last year and 34 in 2024.
Mvundura and her son survived because they sought treatment early. In many other cases, the disease has been fatal.
Shortages of mosquito nets, test kits
Thomas Chuchu, the health programme lead at Save the Children Zimbabwe, said several malaria elimination activities previously supported by ZAPIM II had been disrupted.
“In practice, elimination has continued through government and other partners, but with weaker operational capacity and slower implementation,” Chuchu told Al Jazeera.
Zimbabwe’s dependence on donor funding for essential medicines, diagnostic kits and mosquito-control supplies has left the country vulnerable [Farai Shawn Matiashe/Al Jazeera]
The ZAPIM II programme ran through Zimbabwe’s Ministry of Health system in 11 districts across the provinces of Central and East Mashonaland and the province of Matabeleland North.
Before falling ill, Mvundura said she had not been using mosquito nets or repellents.
“I only started using a mosquito net a friend shared when I fell sick,” she said.
In December 2025, Caroline Mawombedzi was diagnosed with malaria while living in Burma Valley, a farming community about an hour’s drive from Mutare.
She had last contracted the disease in the late 2000s while still a child.
In mid-May, her five-year-old daughter was also diagnosed with malaria by a village health worker in Chishakwe after suffering severe headaches and stomach problems.
Although her daughter received treatment, Mawombedzi said she could not afford preventive measures such as mosquito nets.
“I am unemployed. I cannot afford to buy a mosquito net. We have not been sleeping under a mosquito net for years,” she said.
Virginia Chakandinakira, a village health worker serving Chishakwe, said malaria diagnostic kits and drugs are now in short supply.
“I used to get plenty of malaria test kits and drugs. But in 2025, they did not give me. I referred everyone showing malaria to a nearby Chitakatira clinic,” she said. Chitakatira is a rural settlement about an hour’s drive from Chishakwe.
“I only received test kits and drugs in February. However, the supplies are limited. The authorities told us they were only distributing them to hotspot communities.”
Research programmes crippled
Professor Sungano Mharakurwa, the director of Africa University’s Malaria Institute, said the abrupt withdrawal of US support had worsened the malaria outbreak by affecting the programme.
ZENTO was contributing data from the surveillance of malaria-carrying mosquitoes, which guided strategies employed by the National Malaria Control Programme to control malaria transmission, he said.
The Trump administration’s funding cuts have also effectively put a stop to the US President’s Malaria Initiative (PMI), launched in 2005 by former President George W Bush to control and eliminate malaria worldwide. Mharakurwa said the PMI had played a major role in funding malaria medications, and communities had been left exposed without it.
He said the Malaria Institute later secured funding from the United Methodist Church General Board of Global Ministry, but it fell far short of previous US assistance.
Zimbabwe’s dependence on donor funding for essential medicines, diagnostic kits and mosquito-control supplies has left the country vulnerable.
Itai Rusike, the director of Zimbabwe’s Community Working Group on Health, said the government needed to strengthen domestic health financing to reduce dependence on foreign donors.
“It is risky for a country to depend substantially on external partners, as donors can withdraw financial support anytime should their interests shift,” he said.
Climate change fuels spread
Experts say climate change is also driving the spread of malaria and other vector-borne diseases across Africa.
Rising temperatures are allowing malaria to spread into higher-altitude areas, which were once less vulnerable to outbreaks.
Zimbabwe experienced El Niño between 2023 and 2024, a climate phenomenon marked by unusually warm temperatures in the Pacific Ocean, which typically disrupts rainfall patterns across Southern Africa.
Heavy rainfall followed in 2025 and 2026, creating ideal breeding conditions for mosquitoes.
Chuchu, from Save the Children Zimbabwe, said that the current spike in malaria cases was closely linked to the heavy rains during the 2025–2026 season.
“The rains created favourable breeding conditions for mosquitoes, particularly in already endemic provinces such as Mashonaland Central, Manicaland, Mashonaland East and Mashonaland West,” he said.
Health workers say malaria diagnostic kits and medicines are now in short supply in rural Zimbabwe [Farai Shawn Matiashe/Al Jazeera]
“The effect of heavy rains is likely being amplified by weakened prevention systems, including reduced mosquito-net coverage, delayed vector-control activities, reduced community surveillance, and challenges with timely testing and treatment following the discontinuation of ZAPIM,” he added.
Professor Mharakurwa, meanwhile, said that above-normal rainfall required equally strong preparation and resources to contain malaria transmission.
Government efforts
Zimbabwe aims to eliminate malaria by 2030, in line with the target set by the African Union.
Over the years, the government, working with international donors and aid organisations, has relied on indoor residual spraying, mosquito-net distribution, mass testing and public awareness campaigns to contain outbreaks, particularly in rural communities.
Health workers continue to carry out indoor spraying campaigns in malaria-prone areas, while village health educators use community meetings and radio programmes to encourage early testing and treatment. Authorities have also expanded surveillance and rapid-response systems in high-risk districts.
But some of these efforts have weakened following the disruption of donor-funded programmes. Key malaria elimination activities previously supported by ZAPIM II included active case tracking, targeted distribution of long-lasting insecticidal nets and district rapid-response systems.
For years, the government and aid organisations distributed mosquito nets annually to vulnerable communities, such as Chishakwe. But since the US funding cuts, shortages have become increasingly common.
Village health workers say malaria diagnostic kits and treatment drugs are also running low in some rural areas, forcing suspected malaria patients to travel long distances to clinics for testing and treatment.
Health experts warn that unless funding gaps are urgently addressed, Zimbabwe risks losing years of progress made in reducing malaria infections and deaths.
For Mvundura and her son, surviving malaria still feels like escaping death.
Pricing for 2026 World Cup has been under heavy scrutiny, including in New York where city mayor cuts limited tickets.
Published On 21 May 202621 May 2026
Some lucky New York City residents will soon get a chance to snag cheap seats to this summer’s high-priced World Cup.
Mayor Zohran Mamdani announced on Thursday that 1,000 tickets costing $50 will be made available to city residents of the city of more than 8 million for the world’s most watched sporting event.
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“To put that into perspective, that is five lattes in New York City,” Mamdani quipped from a bar in Harlem’s Little Senegal neighbourhood, alongside US men’s national team star Timothy Weah.
The tickets will be available for seven of the eight games played at the 82,000-seat MetLife Stadium in New Jersey, across the river from Manhattan. The lone exception is the high demand July 19 final, where some seats are costing nearly $33,000.
The tickets will also include free round-trip bus transportation to the stadium and will be distributed via a lottery starting May 25.
With persistent concerns about the sky-high costs for tickets to the games, Mamdani said the city ensure the ones they distribute go to New York City residents and are not resold on the secondary market.
He said the tickets will be non-transferable, with a “variety of ways” used by city officials to verify residency. They will only be handed out directly to fans as they board buses on game day.
“We are making sure that working people will not be priced out of the game that they helped to create,” Mamdani said.
The Democrat, who took office in January, said the effort underscores how his administration is not simply focused on making everyday things like housing and groceries more affordable.
“It extends to making it possible for every New Yorker to take part in the things that make us human,” he said.
During his campaign, Mamdani called on FIFA, football’s global governing body, to make it cheaper for New Yorkers to go to games by setting aside 15% of tickets at discounted prices. He had launched a petition calling on FIFA to reverse its plan to set ticket prices based on demand.
The $50 tickets don’t come directly from FIFA, but from those allotted to New York and New Jersey’s joint host committee for the games, according to the mayor’s office.
Previously, FIFA had made some $60 tickets available for every game at the tournament in North America following backlash over exorbitant prices.
Those reduced price tickets, though, went to the national federations of the teams playing, with the federations deciding how to distribute them to loyal fans who have attended previous games at home and away.
Besides the final, the home stadium for both the NFL’s New York Giants and New York Jets is set to host five group World Cup matches and two knockout stage games. Group stage matches for former winners Brazil, France, Germany and England, along with other nations, begin on June 13.
The European Commission on Thursday cut its 2026 growth forecast for the European economy, as the ongoing conflict in the Middle East drives energy prices sharply higher.
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The EU economy is now expected to grow by just 1.1% in 2026, down from the 1.4% projected in the Commission’s autumn forecast. The eurozone outlook was revised down further to 0.9%.
In its report, the Commission warned that disruption to global energy markets — caused by escalating tensions around the Strait of Hormuz, one of the world’s key oil and gas shipping routes — has significantly worsened Europe’s economic outlook.
“Before the end of February 2026, the EU economy was expected to continue expanding at a moderate pace, alongside a further decline in inflation,” the report said. “However, the outlook has changed substantially since the outbreak of the conflict.”
Inflation is also expected to rise sharply due to the disruption around Hormuz.
EU inflation is forecast to reach 3.1% this year — a full percentage point higher than previously expected — driven mainly by soaring energy costs after oil and gas prices surged amid fears of supply disruptions in the Gulf.
For EU officials, the shock recalls 2022, when Russia’s invasion of Ukraine triggered Europe’s worst energy crisis in decades.
The Commission described the latest turmoil as “the second such shock in less than five years”, warning that Europe’s dependence on imported fossil fuels leaves it highly vulnerable whenever geopolitical tensions threaten global energy supplies.
Consumer confidence has already fallen to a 40-month low, according to the forecast, as households prepare for higher heating and fuel bills while businesses face rising operating costs and weaker demand.
Investment is also expected to slow as companies confront tighter financing conditions and growing uncertainty. Export growth is weakening as global demand softens.
Despite the deteriorating outlook, Brussels said the bloc is better prepared than during the Ukraine-related energy crisis, thanks to years of investment in renewable energy, lower gas consumption and efforts to diversify away from Russian supplies.
“The push towards supply diversification, decarbonisation and lower energy consumption has left the EU economy better placed to absorb today’s shock,” the Commission said.
However, EU officials acknowledged that risks remain heavily skewed to the downside.
The report warned that prolonged disruption in the Strait of Hormuz or across wider Middle Eastern supply chains could drive energy prices even higher, derail the expected easing of inflation in 2027 and potentially stall Europe’s recovery altogether.
The Commission also cautioned that shortages of refined oil products, fertilisers and other industrial inputs could spread through global supply chains, increasing food and manufacturing costs across Europe.
Meanwhile, European governments are preparing for growing fiscal pressure. Public deficits across the EU are expected to widen as governments increase spending to protect households from rising energy bills while also boosting defence expenditure amid mounting geopolitical instability.
Italian Prime Minister Giorgia Meloni has recently urged the European Commission to relax fiscal rules for households and industries struggling with soaring energy costs, arguing that energy security should be treated with the same urgency as defence spending.
At the centre of Rome’s request is the EU’s national escape clause, adopted on 8 July, which allows member states temporary fiscal flexibility to increase defence spending under exceptional circumstances.
Meloni said Brussels had already shown a willingness to loosen budget rules in response to Russia’s war in Ukraine and growing concerns about Europe’s military preparedness. Italy is now seeking similar flexibility for emergency energy measures.
Hundreds marched in Buenos Aires against President Javier Milei’s austerity policies and cuts to Argentina’s healthcare system. Protesters said funding cuts and rising costs are worsening access to healthcare and medicines and pushing the public health system into crisis.
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British Airways has said it will cut flights to six destinations and permanently end its route to a seventh, citing the war in the Middle East
British Airways said the cuts are due to the war with Iran (file)(Image: NurPhoto via Getty Images)
British Airways is cutting flights to seven major international airports in response to the ongoing conflict in the Middle East.
The airline said it has updated its schedule of flights for the Summer 2026 season, which ends on October 24. Customers have been told the changes were made to destinations in the Middle East due to the ongoing conflict between Iran and US-Israeli forces in the region.
As a part of the new schedule, British Airways has reduced the number of flights to seven cities in the Middle East. Services to Dubai are being reduced from three flights a day to one, with the daily service due to return on August 1 (meanwhile, a second daily flight is planned to start on October 16).
Flights to Doha in Qatar, Riyadh in Saudi Arabia and Tel Aviv in Israel are also being cut from twice‑daily to once‑daily. All three routes are expected to resume normal frequency on August 1.
Following a wider review of the programme, the airline has also made the decision to permanently end its route to Jeddah in Saudi Arabia from April 24, The Express reports.
The airlines said in a statement: “Due to the ongoing situation in the Middle East, we have made further changes to our flying schedule to provide greater clarity for our customers.
“We are keeping the situation under constant review and are directly in touch with affected customers to offer them a range of options.
“Since the disruption began, we have helped thousands of customers return home, operated relief flights, and added additional capacity on key long‑haul routes. We will continue to assess and introduce further flying where possible.”
Destinations impacted by reduced British Airways flights
San Francisco, United States – Greer Dove’s days are packed with studying business and finance, as well as doing administrative work at college, along with caring for her eight-year-old daughter with special needs. But once a week, Dove, a single mother, makes sure to drop in at the food bank in California’s Marin County to pick up vegetables, fruit and other food. Along with the federal government’s food benefits, they keep her housing running.
“We need this so we can keep functioning at a high level,” she says. “She loves fruit, so I make sure to get it,” she says of her daughter.
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Dove, who is also looking for a full-time job, has worked in restaurants, event management, retail, television shows, office administration and payroll over the years. But she has been on the federal government’s Supplemental Nutritional Assistance Program (SNAP) for six years, and with the food bank, for more than three years. Before she got food benefits, Dove fed her daughter all she had and skipped meals or looked around for snacks in the offices she worked at to get her through the day.
United States President Donald Trump’s One Big Beautiful Bill Act (OBBBA), passed in June, cut SNAP benefits by more than $186bn over the next 10 years to make up for extending cuts to income tax. This could lead to more than 3 million people nationwide, and 665,000 recipients in California, losing such food benefits, according to estimates.
“This will bring a series of cuts that collectively present an existential threat to food benefits,” says Andrew Cheyne, managing director of government relations and public affairs at the County Welfare Directors Association of California.
California’s proposed billionaire tax, which seeks to impose a one-time 5 percent tax on the assets of the state’s more than 200 billionaires to make up for the funding gap created by the OBBBA, got more than 1.5 million signatures in April. It is likely to be on the ballot for the November midterm election.
While most of the nearly $100bn expected to be raised through the tax will go towards filling the gap in health insurance created by the OBBBA, 10 percent will be used to make up for the retrenchment in food benefits.
In California, where more than 5.3 million people, more than any other state, receive food benefits, the impacts of the cuts began to be felt in April when 72,000 immigrants started losing benefits. June onwards, nearly 600,000 recipients will be screened for work eligibility. Recipients, including those who are homeless, seniors, foster youth and veterans, will have to work, study or volunteer to receive food benefits. Failing the screening to meet work requirements for three months will lead to their food benefits being cut.
Brian Galle, professor of law at the University of California at Berkeley and one of the tax measure’s authors, says that in California, the state that introduced gig work, “jobs are increasingly precarious. You may find enough work or not. You may get tips or not. But nutrition needs are steady.”
Making impossible choices
On a recent Friday morning, new members lined up to enrol at a whitewashed, bunting-festooned La Ofrenda food bank in San Francisco’s Mission district. The food bank doles out fresh vegetables, fruit and bread that have been donated by large grocery stores once those products neared expiration date.
Gladys Lee had taken a 45-minute train ride after a friend told her about it. Lee worked at downtown San Francisco’s Hyatt hotel as a room cleaner for three decades until a back injury meant she could not push the heavy cleaning carts any more and had to leave. After seven years of struggling to find work, food was getting scarce, and Lee found her way to La Ofrenda. She packed what she could into a carton and held it in her arms for the train ride back.
Volunteers gathered at the La Ofrenda food bank in San Francisco’s Mission District [Saumya Roy/Al Jazeera]
Food benefit rolls have shrunk by more than 3.3 million nationally in the six months from July 2025, when the OBBBA was enacted, to January 2026.
In California, the rolls of Calfresh, as food benefits are known in the state, shrank by 288,000 or 6 percent from July 2025 to February 2026, according to analysis by the Center for Budget and Policy Priorities, a Washington, DC-based think tank. This reduction in rolls happened even before the OBBBA cuts began.
Brooke Rollins, the agriculture secretary, wrote in a recent essay that the shrinking of SNAP rolls reflected an ebullient economy and buoyant job growth.
“The drop in SNAP recipients affirms that many Americans are moving from welfare to work,” she wrote. “It is no secret that Trump’s massive tax cuts and deregulation efforts are unleashing robust, private sector-led economic growth, which are fueling trillions in investments, booming wage growth”.
But unemployment remained stable at about 4.4 percent since July 2025, according to the Bureau of Labor Statistics data, while SNAP rolls shrank.
“This last time we saw such a steep, quick decline, other than during natural disasters, is three decades ago when welfare reform was enacted,” says Dottie Rosenbaum, senior fellow and director of Federal SNAP Policy at the Center for Budget and Policy Priorities.
Nationally, SNAP rolls shrank by 8 percent, while in California, they shrank by 5.5 percent, in part because the work eligibility requirements were delayed until June, while some other states have already implemented them.
At La Ofrenda, Roberto Alfaro, executive director of the nonprofit Homey, says he started the food bank when food costs went up during the pandemic. They have stayed high, he says. Now he sees people doing day jobs and night jobs and coming for food when they have paid rent.
“People are making impossible choices,” says Keely O’Brien, a policy advocate at the Western Center for Law and Poverty.
While California is the world’s fourth-largest economy, growth has come with a soaring cost-of-living crisis.
“With rising housing and utility costs, few households can dedicate that much of their income towards food,” O’Brien says.
The OBBA has also shifted the administrative cost of meeting work eligibility requirements to states, and beginning next year, part of the cost of SNAP will also fall on states.
“To make requirements more stringent, you are creating more government, more bureaucratic logjam,” says Jaren Sorkow, state director for the Children’s Defence Fund.
This has already led to a 51 percent drop in SNAP rolls in Arizona, which has begun implementing the OBBBA cuts, according to data by the Center for Budget and Policy Priorities.
Food being given out at the La Ofrenda food bank in San Francisco’s Mission District [Saumya Roy/Al Jazeera[
Making something from nothing
Several measures to counter the $100bn gap in funding for health insurance and food benefits created by the OBBBA have been floated in California. The biggest of these is the one-time 5 percent tax on those with assets of more than a billion dollars. The tax will raise $100bn, its authors estimate.
As it seems set to be voted on in the November election, it faces mounting opposition from the state’s tech entrepreneurs who have funded measures to undercut the tax.
Tech entrepreneurs have called it an economic 9/11, saying taxing their assets, including shareholding in startups, will lead to a flight of capital and innovation from the state. Sergey Brin, a cofounder of Google Inc, now spends a week in Nevada and a week in his Bay Area offices and has spent more than $57m on opposing the billionaire tax. He has backed two measures that undercut the billion tax, which have also received 1.4 million and 1.5 million signatures and are also set to be on the ballot for the November election.
One of these measures prohibits future taxes on personal property, including financial assets, savings and retirement accounts, as well as intellectual property. The other would increase audits of taxpayer-funded programmes, and includes language that would essentially invalidate the billionaire tax.
In a recent statement to The New York Times, Brin said, “I fled socialism with my family in 1979 and know the devastating, oppressive society it created in the Soviet Union. I don’t want California to end up in the same place.”
The coalition of unions backing the billionaire tax is bracing for the fight ahead. “We expect to be outspent,” says Kris Cuaresma-Primm, director of partnerships for the coalition that is backing the billionaire tax. “We will keep communicating to people that there is a tidal wave of pain coming from the cuts, and we want to reclaim the losses from the OBBBA.”
Giulia Varaschin, senior tax policy adviser at the International Tax Observatory, who recently coauthored a study on wealth taxes, says there is little academic evidence that such taxes cause the wealthy to leave at a notable scale. “There is only a marginal flight with very little, if any, economic impact,” she says.
The study, coauthored with the economist Gabriel Zucman, who supports the California billionaire tax, did find that wealth taxes had not raised as much revenue as estimated in several European countries and became less popular as a result.
Varaschin says this was because these taxes were levied on a larger set of the wealthy, which included homeowners or small businesses, rather than the ultra-rich or billionaires. The taxpayers could hardly afford to pay it, and the government made exemptions instead. These taxes also did not touch assets, where much of the wealth of the ultra-rich lies, Varaschin says.
The California tax remedies this by taxing only billionaires and taxing assets, including shares in companies.
Daniel Shaviro, Wayne Perry professor of taxation at New York University, says, “Traditionally, these taxes can be hard to enforce because tax administration don’t want to go after these people.”
Even if it passes, “The governor could just say this is not a high priority for him and not enforce it,” Shaviro says, referring to Governor Gavin Newsom, who has opposed the tax.
But Primm says, “The governor is out of touch with Californians on this”.
Newsom is in the last year of his last term as governor. However, nearly all the candidates running for the June 2 primary for governor, except billionaire Tom Steyer, who is running as a progressive Democrat, also oppose this measure. While some have said this will lead to a flight of capital, others say the spending plan does not include expenses for education, which was not cut in the OBBBA.
Greer Dove, who gets food through Calfresh and the San Francisco Marin Food Bank for herself and her daughter, says the looming food benefit cuts are worrying. “The anxiety of it all is adding up. I could be next.”
May 8 (UPI) — The Department of Government Efficiency illegally canceled roughly $100 million in grants that Congress had approved the National Endowment for the Humanities to award, a judge ruled.
U.S. District Court Judge Colleen McMahon said Thursday in a 143-page decision that DOGE and the Trump administration had “no constitutional authority to block, amend, subvert or delay spending appropriations based on the president’s own policy preferences,” CBS News and The Washington Post reported.
DOGE used ChatGPT to revoke grants the NEH had already awarded that it thought were related to diversity, equity and inclusion programs the administration sought to rapidly eliminate throughout the federal government in 2025.
The NEH was one of 16 “small agencies” that President Donald Trump last May marked for elimination in his 2026 budget proposal, which the DOGE effort, as spearheaded by Elon Musk, had already started culling expenditures from.
“The termination of NEH grants challenged in this action was unlawful because it was undertaken in violation of the First Amendment, in violation of the equal protection component of the Fifth Amendment and without statutory authority,” McMahon wrote in the decision.
The lawsuit was brought by the American Council of Learned Societies, the American Historical Association and the Modern Language Association of America after DOGE cut more than 1,400 grants that had been awarded to scholars, research institutions and humanities organizations.
McMahon said that because Congress had not given DOGE the authority to “identify, select or direct the termination of the grants,” she permanently enjoined the government from terminating all of the grants referenced in the lawsuit, as well as from cutting any others using the arguments rejected in the ruling.
Representatives of the three organizations hailed the ruling and said they would continue to push for the full restoration of all the NEH grants, which includes “staff, programs and capacity to serve the public it was created to support.”
“This ruling is an important achievement in our effort to restore the NEH’s ability to fulfill the vital mission with which Congress charged it,” Sarah Weicksel, executive director of the American Historical Association, said in a press release.
“From history exhibitions and path breaking scholarship to library programs and professional development opportunities, the humanities help us understand our past and ourselves, providing all of us with the essential tools for our future,” she said.
President Donald Trump delivers remarks at an event he is hosting for a group that includes Gold Star Mothers and Angel Mothers in honor of Mother’s Day in the Rose Garden of the White House on Friday. Photo by Aaron Schwartz/UPI | License Photo
Maryam watched her goats starve and her crops fail. She buried two of her children before she finally gave up hope and sought help from international aid agencies in southern Somalia.
She left her village with her remaining six children, making the long journey along the Jubba River to one of a clutch of makeshift settlements on the outskirts of Kismayo, the capital of Somalia’s Jubbaland state.
Three consecutive seasons of failed rains have doubled Somalia’s malnutrition rate. Maryam, 46, is among more than 300,000 Somalis forced to leave their homes since January alone.
Several international organisations have stopped operations in the Kismayo camp for internally displaced people (IDPs), largely due to aid cuts ordered by United States President Donald Trump last year.
“We are hungry. We need care and help,” said Maryam.
Haunted by the memory of her dead children’s swollen bellies, she says she will not return to her village, which is under the control of the al-Qaeda-linked armed group al-Shabab. Fighters there have started seizing the limited food supplies available.
Children play near their makeshift shelters at an IDP camp in Ceel Cad, Kismayo town [Simon Maina/AFP]
But the camp is hardly better. In March alone, five children died of malnutrition, its manager says.
Since the early 1990s, Somalia has endured near-constant civil war, armed rebellions, floods and droughts. The war-torn country ranks among the world’s most vulnerable to climate change, which scientists say is leading to more frequent and more intense episodes of extreme weather such as droughts and floods.
Africa, which contributes the least to global warming, bears the brunt.
The recent cuts in foreign aid have not helped. They have had “a huge impact on our work”, said Mohamud Mohamed Hassan, Somalia director for NGO Save the Children.
More than 200 health centres and 400 schools have closed since last year.
Farmers, whose herds and crops have been decimated, describe one of the worst droughts ever recorded in a country where a third of the population already lacked regular meals. Even if the forthcoming rainy season is normal, it will take months for affected populations to recover.
“We cannot afford to actually address all the needs of these people,” said Ali Adan Ali, a Jubbaland official managing the displaced.
At a mobile health clinic supported by Save the Children, the only one still operating for multiple camps in the area around Kismayo, a woman named Khadija tried to feed a high-calorie solution to her severely malnourished one-year-old daughter.
She came to the camp after last year’s drought killed her livestock, but here also “we have nothing to eat”, the 45-year-old said.
A displaced woman holds her malnourished baby in a stabilisation centre for children suffering severe acute malnutrition in Kismayo [Simon Maina/AFP]
A hospital in Kismayo is the only facility in the region capable of treating the most severe cases of malnutrition. But it is turning patients away due to a lack of space and staff.
Every bed is occupied by starving babies, some on ventilators with intravenous drips in their fragile arms. Cases have tripled since last year, and things are only getting worse.
The US-Israel war on Iran has increased fuel prices, affecting food and water supplies.
Those in the camp seek work in construction or cleaning jobs in Kismayo or sell firewood, but the options are limited.
Meanwhile, the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) has had to steadily reduce its Somalia programme from $2.6bn in 2023 to $852m this year, especially since Washington slashed its donations. So far, only 13 percent of this year’s target has been raised.
“It’s a toxic cocktail of factors … Things are really, really desperate,” Tom Fletcher, head of OCHA, told the AFP news agency in an interview last week.
“Often we’re having to choose which lives to save and which lives not to save.”
Kid Cudi has fired M.I.A. as an opening act on his Rebel Ragers tour following backlash over her onstage comments in Dallas, where she said she “can’t do illegal” and appeared to accuse audience members of being in the country illegally.
The controversy first gained steam on Reddit where concertgoers expressed their concerns about her comments at Saturday’s show, including that she reportedly claimed she was canceled for being a brown Republican voter, prompting boos from the audience. Although she is not a U.S. citizen, she endorsed Donald Trump’s 2024 presidential campaign.
In one video, she says she “can’t do illegal, though some of you could be in the audience,” drawing audible gasps.
In a statement Monday, Kid Cudi announced that M.I.A. was no longer with the tour and noted that he had previously had his management tell her team that he “didn’t want anything offensive” in his shows and that he was assured this message was understood.
“After the last couple shows, I’ve been flooded with messages from fans that were upset by her rants,” he wrote in a statement on Instagram. “This, to me, is very disappointing and I won’t have someone on my tour making offensive remarks that upsets my fanbase.”
The rant came as she introduced her song “ILLYGIRL,” which has lyrics that say “I’m illegal, f— your law.” In another video, she can be heard saying, “I’m illegal, half my team are not here because they didn’t get the visa,” before instructing the audience not to listen to “what the bots say on the internet.”
After Cudi’s announcement about her being removed from the tour, she responded in an all-caps message on X, writing, “I WROTE BORDERS AND ILLYGAL AND PAPER PLANES BEFORE YOU THOUGHT IMMIGRANT RIGHTS WERE COOL. I’VE HAD [THESE] BATTLES BY MYSELF WITHOUT THE HELP OF MILLIONS OF FANS BACKING ME.”
M.I.A., whose real name is Mathangi “Maya” Arulpragasam, is a British-born rapper with Sri Lankan parents. She spent her early childhood in Sri Lanka before her family returned to London as refugees during the country’s civil war.
She is best known for her 2008 smash hit “Paper Planes,” which includes the lyrics “If you catch me at the border I got visas in my name.” Several of her songs deal with themes of immigration, politics and war.
In 2022, she announced her conversion to born-again Christian, which inspired her recently released album M.I.7, featuring heavy Christian themes.
In her X statement on Monday, she accused people of gaslighting her song lyrics, noting that “IS THE WORK OF SATAN.” She also made comments about Jesus being an immigrant and a rebel and said he returned to lead the world to fight injustice. She ended the post with a call for everyone to listen to M.I.7.
Kudi’s 33-show Rebel Ragers tour kicked off March 28 with M.I.A. and Big Boi billed as the opening acts. On Monday, he also announced that his Tuesday show in Birmingham, Ala., was canceled due to low ticket sales. The tour is set to continue with Big Boi as an opener and A-Trak, Me N Ü and Dot Da Genius slated to open at certain shows.
SACRAMENTO — One of Gavin Newsom’s top goals as he winds down his final year as California governor is to leave the state with a balanced budget.
After years of the state spending more money than it brings in, it’s Newsom’s last opportunity to fix a chronic deficit or dump the problem on the next governor.
How far he goes to solve the state’s structural spending imbalance will define his legacy as a steward of trillions in taxpayer dollars. As a potential candidate for president in 2028, he could also have a political incentive to do as little as possible.
“Any cuts you make are going to cause people to scream,” said Darry Sragow, a veteran Democratic strategist. “Any increases in taxes are going to cause people to scream and in terms of what’s best for a presidential run, it would be nice if people weren’t screaming.”
As California’s 40th governor, Newsom expanded publicly funded healthcare to income-eligible undocumented immigrants, increased state-subsidized child-care slots and provided free meals for schoolchildren among a wishlist of progressive wins since he took office in 2019.
His achievements have helped struggling Californians live in an increasingly unaffordable state and given him bona fides to tout to voters if he launches a bid for the White House.
But the state could never afford to pay for existing services and the new programs that Newsom and Democratic lawmakers enacted, according to an analysis of ongoing state spending since before the pandemic released by the Legislative Analyst’s Office last week.
Spending from the state’s principal operating fund has grown about $100 billion since Newsom’s first full fiscal year in office in 2019-20, mostly due to the growing cost of existing programs that he inherited. State spending has outpaced California’s strong revenue growth by about 10%, creating a perennial budget shortfall — a structural deficit — that Newsom and the Democratic-led Legislature solve with largely temporary fixes each year.
Instead of making across-the-board program cuts or raising taxes to align spending with revenue, Democrats have tapped into reserves designed to preserve social services for the state’s most disadvantaged communities during economic downturns.
While the California economy remains stable and state revenue has increased, Newsom and lawmakers have taken $12.2 billion from the rainy day fund. Democrats have borrowed $28 billion more from other state funds to cover their spending in recent years, according to the LAO.
“Taken together, these trends raise serious concerns about the state’s fiscal sustainability,” Legislative Analyst Gabriel Petek wrote in a review of Newsom’s January budget proposal.
Fiscal watchdogs have warned that the spending trends will leave California in a precarious position if the stock market tanks and tax receipts bottom out.
Personal income taxes are driving higher-than-expected revenue now, which analysts attribute to an artificial intelligence boom on Wall Street, and suggest the state could have no deficit in the upcoming year. In January, the Newsom administration anticipated significant operating deficits in the years ahead: $27 billion in 2027-28, $22 billion in 2028-29 and $23 billion in 2029-30.
“This issue is really whether they’re going to take seriously the structural deficit that is several years in the making now, where the spending has outpaced revenue, and to address that, they’re going to either have to make some fairly deep cuts or raise revenue and or both,” said former state Controller Betty Yee, who worked as a budget aide under Gov. Gray Davis and recently dropped her own campaign for governor. “But they have to be real. I think resorting to these one-time solutions has really exacerbated the problem.”
H.D. Palmer, a spokesperson for the California Department of Finance, said the governor is looking to solve the budget problem with more than a temporary fix.
“Although he is still finalizing his proposal that he’ll put forth to the Legislature, as he has said, he wants those solutions to be durable, and he wants them to have an impact beyond a single fiscal year,” Palmer said.
To stabilize California’s budget, Democrats will probably have to raise taxes or fees to generate new revenue and cut programs, according to the LAO. At least 40 cents for every dollar in revenue is dedicated to education under the state Constitution, requiring policymakers to find between $30 billion and $60 billion annually in additional revenue to cover projected shortfalls in 2027-28 and beyond if relying on new taxes alone.
President Trump’s cuts to healthcare are adding to the problem.
HR 1 will add $1.4 billion in state costs to the general fund. Newsom’s January budget proposal did not include a plan to help millions of low-income Californians who are expected to lose access to healthcare under the federal cuts.
To temper those cuts in California, other groups proposed a new tax on billionaires that appears poised to qualify for the November ballot.
Spearheaded by Service Employees International Union-United Healthcare Workers West, the initiative would apply a one-time 5% tax on taxpayers with assets exceeding $1 billion. If approved by voters, the tax would generate roughly $100 billion, which would fund healthcare programs.
The measure has divided unions and Democrats at the state Capitol.
Newsom has criticized the initiative, citing concerns that increasing taxes on the wealthy will have the opposite intended effect and drive the highest earners out of California. Under a progressive tax structure, the state budget is dependent on income taxes paid by the ultra-rich on earnings largely from capital gains.
Larry Page and Sergey Brin, the co-founders of Google, have already purchased residences in Florida, along with others looking to escape the tax if it goes through in November. Billionaires launched their own ballot measure campaign to undercut the tax proposal.
State lawmakers are also considering avenues to raise revenue, which include repealing a “water’s edge” tax break. Under the change, multinational companies would no longer be allowed to shield the income of their foreign subsidiaries from state taxes. California loses about $3 billion in revenue from the tax break each year.
In its budget plan released in April, the state Senate proposed a new fee on the largest corporations in the state to provide $5 billion to $8 billion annually for Medi-Cal.
The upper house said 42% of Medi-Cal enrollees are full-time workers who are not enrolled in their company’s healthcare plan because their wages are low enough to qualify for state-subsidized healthcare. As a result, corporations aren’t paying for healthcare for many of their employees and instead taxpayers are picking up the bill through Medi-Cal.
SEIU California, the powerful state union council representing over 700,000 workers, endorsed the plan. The union said Trump’s tax policy will reduce corporate taxes by $900 billion, while 3 million Californians lose healthcare.
“In this urgent moment, California’s workers need to see our leaders show us what they’re made of,” said Tia Orr, executive director of SEIU California. “The Senate is showing the courage to demand corporations pay their fair share, rather than making working people pay with their lives.”
The change is being described as a more politically palatable “fee” and not a tax.
“We explored multiple revenue options, and this was the one that felt more narrow, it felt more focused, and it also felt like it was directly going for the subsidy that’s being lost because of the Trump HR 1 cuts,” said Senate President Pro Tem Monique Limón (D-Goleta), who leads the upper house of the Legislature.
Limón said her caucus believes it’s important to address potential revenue streams because of the depth of federal healthcare reductions.
“If we don’t address the structural deficit, we are looking at severe cuts,” she said. “You are looking at people without health insurance. You are looking at hospitals closing down. You are looking at medical providers not being able to take more patients. You are looking at our emergency rooms over capacity, with not enough medical providers. I mean, you’re looking at a place that’s really, really, really difficult, and we feel like we have to, at least, look at what are viable options that are conditional on these cuts coming.”
Newsom has not commented publicly on the Senate’s plan. As governor, he’s been reluctant to embrace new taxes and fees.
Newsom could reject all the proposals for new taxes or fees and continue what he’s done before: take advantage of higher-than-expected tax collections, shift funds around, delay program implementation and borrow money to knock the deficit down to zero, or forecast a surplus, for his last budget year that begins July 1.
If he doesn’t take on California’s larger budget imbalance, then the problem would be the next governor’s to solve. A stock market crash, or economic recession, could force his successor to make drastic cuts across the board with limited reserves to support programs.
Kicking the can again would cement Newsom’s fiscal legacy as a governor who championed bold headline-making policies that bolstered the safety net for low-income Californians, but who failed to provide a solution to pay for his agenda.
“Not only has he not come up with a plan, he has pretended we don’t need one,” said Patrick Murphy, a professor of public affairs at the University of San Francisco.
Newsom’s interest in running for president could seemingly discourage him from slashing the budget and raising attention to the state’s financial woes, Sragow said. Newsom is setting himself up as a potential front-runner for his party. He has said he remains undecided about officially launching a 2028 campaign.
As a Democrat from California, his opponents would automatically label him as financially irresponsible and tax-happy. Calling out the massive budget problem on the horizon, raising taxes and making painful cuts will give them ammunition.
“There’s a long list of things that he’s going to be charged with, and this is likely to be one more,” Sragow said. “But I guess the question is, is he going to be charged with a political misdemeanor or a political felony?”
Former state Sen. Steve Glazer said Newsom is standing on political quicksand either way. State budget projections are based on assumptions about the future that often don’t bear out, leaving his choices exposed to criticism that he went too far, didn’t do enough, and everything in between.
“Whatever the governor decides to do in his May revise and in his final budget, it’s fraught with political risks, because it can be manipulated so easily by all sides,” Glazer said.
If Newsom ignores the spending problem, his successor could blame him for California’s financial woes when they take office in January and provide their own outlook of the state’s fiscal future. At the time, Newsom could be trying to convince America to make him the nation’s next president.
Murphy said Newsom has championed major policies and been reluctant to back off them later when revenue doesn’t pencil out.
In terms of spending, he’s governed similarly to the men who led California before him, with the exception of Jerry Brown, who cut programs to reduce a deficit he inherited in his second stint in the governor’s office and left Newsom with a surplus.
“It’s not all that different than most of the governors have done, which is finding it very hard to say no and finding it very hard to take on a tough choice of going to the ballot to ask for more money or raise taxes,” Murphy said.
Deukmejian left a budget disaster for his successor, Gov. Pete Wilson. Deukmejian publicly claimed he passed a balanced budget in his final year and blamed an economic downturn for the problems Wilson encountered.
When Wilson announced a record $13-billion budget deficit early in his first year in office in 1991, he said the Persian Gulf War, an economic downturn and natural disasters added to a structural deficit in the budget.
The Legislature and Deukmejian, Wilson said, had “papered over” the problem.