cuts

With food benefit cuts looming in the US, Californians eye billionaire tax | US Midterm Elections 2026

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.

Recommended Stories

list of 4 itemsend of list

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.

Food Bank in San Francisco, California
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 California, USA
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.”

Source link

DOGE cuts to National Endowment for the Humanities were illegal, judge says

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

Source link

Aid cuts, drought and conflict leave Somalis desperate | Drought News

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.

Somali internally displaced children
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 newly displaced Somali woman holds her severely malnourished baby in a stabilization centre for children suffering severe accute malnutrition in Kismayo,
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.”

Source link

Kid Cudi cuts M.I.A. from tour after she says she ‘can’t do illegal’

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.



Source link

Taxes, program cuts and Newsom’s legacy on the line in budget negotiations

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.

The LAO, the Legislature’s nonpartisan fiscal advisor, said the state has already solved $125 billion in budget problems over the last three years with mostly short-term solutions.

“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.”

How Newsom wants to address the state’s financial challenges will be revealed on May 14 when he is expected to present his revised budget plan in Sacramento. His January budget proposal did not include any significant reductions or cuts to programs.

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.

On taxation, Newsom is perhaps most similar to former Gov. George Deukmejian, who opposed general tax increases for most of his administration.

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.

Source link

LIV Golf cuts ties with Saudi PIF, announces plan to stay afloat

Two weeks ago, LIV Golf did its best to conceal the fact that the Saudi Public Investment Fund would cease to bankroll the league after the current season, only to have LIV CEO Scott O’Neill let the truth slip during a television interview.

This week, the intentions of PIF and consequences to LIV are known by all.

LIV Golf announced Thursday that it has established a new independent board that will attempt to keep the league afloat utilizing a “diversified, multi-partner investment model.” In other words, a model that doesn’t include PIF.

PIF Governor Yasir Al-Rumayyan no longer will serve as LIV Golf chairman, another unmistakable signal that the Saudi sovereign wealth fund worth an estimated $1 trillion is cutting ties with financially troubled LIV.

LIV Golf was supposed to be a key component in Saudi Crown Prince Mohammed bin Salman’s “Vision 2030” plan to diversify the kingdom’s economy away from oil. PIV lured megastar golfers Phil Mickelson, Jon Rahm, Bryson DeChambeau, Dustin Johnson and others away from the PGA Tour by shoveling hundreds of millions of dollars into their bank accounts.

Al-Rumayyan, Prince bin Salman’s trusted technocrat, was charged with implementing the plan, but LIV Golf has failed to attract significant viewership or commercial sponsors despite innovations such as a 54-hole format and a team model.

When LIV and the PGA Tour came to a short-lived, tentative agreement to end pending litigation and potentially join forces in 2023, Al-Rumayyan was a key figure in the negotiations.

A last-ditch effort to broker a merger between the rival leagues took place in the White House in February 2025 when President Trump hosted Al-Rumayyan, PGA Tour commissioner Jay Monahan and Tiger Woods. No agreement was reached.

Now, apparently, PIF will attempt to turn its attention to initiatives that don’t bleed billions. The fund has invested more than $5 billion into LIV Golf since it was launched in 2022 and is reportedly spending $100 million per month this year.

The wealthy but suddenly unmoored LIV golfers have been left to scramble like a weekend hacker trying to salvage a bogey after chipping into a sand trap.

LIV Golf Louisiana announced that the tournament scheduled for June 25-28 in New Orleans has been postponed. A new date hasn’t been set. However, an official told ESPN on Thursday that next week’s tournament at Trump National Golf Club outside Washington, D.C., will take place as planned.

Six other tournaments remain on the schedule that concludes with LIV team championships on Aug. 27-30 at The Cardinal at Saint John’s in Michigan. Tournaments outside the United States are scheduled for South Korea, Spain and Great Britain.

Hired Thursday to come up with a financial model to keep LIV afloat sans PIF are Gene Davis and Jon Zinman, described in a LIV statement as “seasoned experts with proven track records of navigating complex situations and unlocking value for global organizations.”

LIV Golf’s contorted spin on acknowledging that PIF will no longer subsidize the league was a statement saying it will focus on ”securing long-term financial partners to support its transition from a foundational launch phase to a diversified, multi-partner investment model.”

Davis, the newly appointed chairman of the LIV Independent Directors Committee, sees opportunity in the face of a PIF-less future.

“LIV Golf has built something truly differentiated — a global league with passionate fans, world-class talent, and demonstrated commercial momentum,” he said in a statement. “The executive leadership team, along with Jon and I, see a clear opportunity to help the league formalize its structure, attract and secure long-term capital, and position the business for growth while continuing to promote the game across the world.

“ We look forward to positioning LIV Golf for future success.” 

Source link

National parks brace for summer surge as Trump administration proposes more staff cuts

When families flocked to Yosemite National Park during their recent spring breaks, some met two-hour waits at the entrance gates. At a lakeside spot in the North Cascades in Washington state, there hasn’t been enough staff to open the visitors center. And in Death Valley, water was shut off at two campgrounds.

National parks staff and advocates fear that such issues could only worsen this summer, as the park system faces the busy season with a dramatically reduced staff. At Yosemite, concerns are compounded by the National Park Service’s recent elimination of the park’s timed-entry reservation system, which led to the long spring-break lines.

“We’re definitely really nervous and anxious about the upcoming season, especially with the staff shortage we already have,” said a National Federation of Federal Employees union member at Yosemite who requested anonymity to speak candidly.

The National Park Service has lost nearly a quarter of its staff to buyouts, early retirements and other departures since the Trump administration took office last year, according to an estimate by the National Parks Conservation Assn. This month, the administration proposed cutting nearly 3,000 more positions in its 2027 budget. It also offered a recent new round of buyouts.

The push to cut the park system even further — ahead not only of peak season but of America’s 250th birthday, which the Trump administration has promoted in relation to national parks — has underscored ongoing questions about how smoothly parks can operate as warm weather and summer vacations draw tourists.

Interior Secretary Doug Burgum defended the budget proposal on Capitol Hill last week, telling senators that the visitor experience to parks can be improved even while spending and staff reductions are made.

He said the agency plans to hire 5,500 seasonal workers and asked Congress to approve funding for those employees to work for nine-month stints rather than six months.

“All of that’s going to help us get this thing in shape, even with an overall reduction,” Burgum said Wednesday.

He was met with skepticism by Democrats, who confronted him over the spending proposal.

“That is just a recipe for disaster,” Sen. Patty Murray (D-Wash.) told Burgum.

Congress will have the final say on the proposed cuts, but in the meantime, the reductions that have already occurred presented challenges last season and appear likely to do so again, said Cheryl Schreier, a retired superintendent of Mount Rushmore National Memorial and chair of the Coalition to Protect America’s National Parks.

Whether the parks will get enough qualified candidates to hire the number of seasonal workers needed is also “a really big concern,” she said. “It’s really important to have all of those individuals to be able to operate a park in a good fashion.”

Campers prepare food in Yosemite Valley last December. 9, 2025 in Yosemite, CA.

Campers prepare food in Yosemite Valley last December. 9, 2025 in Yosemite, CA.

(Eric Thayer/Los Angeles Times)

The lower staffing has prompted worry about parks’ capacity for emergency response, protection of the natural landscape and custodial maintenance. Fewer rangers could mean, for instance, fewer people to reach dehydrated, stranded or lost hikers, said Chance Wilcox, California desert director for the National Parks Conservation Assn.

A park service spokesperson said Friday that staffing decisions are made based on local conditions at each park and that the agency is “focused on ensuring parks remain open, accessible, and safe for visitors.”

About 323 million people visit America’s national parks annually, according to the Interior Department. While the parks can expect heavy traffic, a drop in international tourism and the rise in gas prices has injected additional uncertainty into the tourism industry this year.

The number of Canadians visiting the United States has dropped since Trump took office, according to the Canadian government — with the number of Canadians making car trips to the United States this March declining by 35% compared with March 2024.

The Interior Department also instituted a new $100-per-person fee for non-Americans entering 11 of the most popular parks, a move to raise money for the parks but an extra squeeze for Canadians coming across the border and other international visitors.

At the Senate and House hearings on the Interior budget, Burgum presented a vision of the national parks system as one where most employees should be working at a park and interacting with visitors, and said he was more focused on filling those roles than jobs in regional offices.

“Our goal is to have more people actually working in the parks,” he told senators.

An Interior Department spokesperson said the agency was “advancing high-priority improvements” across the system.

“Secretary Burgum has been clear that resources should be prioritized toward visitor-facing services, public safety, maintenance, and projects that improve the experience for the American people,” an Interior Department spokesperson said in a statement Friday.

Critics say that strategy displays a misunderstanding of how the 109-year-old agency functions. Employees who work on contracts, human resources, IT, communications and other organizational and administrative jobs are essential to keeping the parks running, Wilcox said.

“If everything were visitor- or front-facing, the entire agency would collapse from behind,” said Wilcox, of the National Parks Conservation Assn.

The decision to discontinue the reservation system at Yosemite — as well as at Arches and Glacier national parks — is another part of Interior’s mission to bring more people into the parks. The concept was “designed to expand public access” this summer, the park service said in announcing the policy in February. It kept the timed-entry reservation system in Rocky Mountain National Park for the peak season.

Visitors take pictures while walking through Muir Woods

Visitors take pictures while walking through Muir Woods National Monument on July 24, 2025 in Muir Woods National Monument, California.

(Justin Sullivan / Getty Images)

In addition to causing long lines, cramming too many people into the parks at once could lead to environmental damage, particularly if people park cars in natural areas, said Don Neubacher, a retired Yosemite superintendent and member of the Coalition to Protect America’s National Parks.

“It’s going to be mass chaos,” he said.

On a Saturday at the end of March, Jon Christenson of Coarsegold, Calif., drove to the park with his 38-year-old son. They were surprised to encounter a two-hour wait to get into the park, plus at least a half-hour hunt for parking after they made it through the gates, he said.

“It was almost like Disneyland. It was really uncomfortable from the standpoint of just so many people,” said Christenson, 82. “It’s kind of troubling to see that they’ve opened up the floodgates and now it’s kind of ruining the experience for everybody.”

Rangers there are doing multiple jobs, and last summer they helped clean bathrooms in the absence of custodial staff, the Yosemite union member said. Now they, too, are concerned about the potential for gridlock.

The worker asked summer visitors to bring patience: “The folks at the National Park Service … they will be grateful for any compassion and empathy.”

Source link

AI Cost Cuts Could Unlock $22 Billion for Gaming Industry -Morgan Stanley

Advanced artificial intelligence tools could significantly reduce video game development costs, potentially saving nearly half of expenses and unlocking around $22 billion in annual profits for game makers, according to Morgan Stanley analysts. AI can automate tasks like creating game environments, generating dialogue, and testing software, making production faster and cheaper. However, these financial gains may not be evenly spread across the gaming industry.

Morgan Stanley estimates that global spending on video games will reach $275 billion this year, with 20%, or about $55 billion, reinvested into game development and operations. Game development, which is typically costly and labor-intensive, could become more efficient as AI allows for smaller teams and quicker enhancements post-launch. A prime example is Take-Two Interactive’s Grand Theft Auto VI, in development since 2018 and expected to launch in November 2026.

Potential winners from this AI integration include major gaming platforms like Tencent, Sony, and Roblox, along with large publishers such as Take-Two and Electronic Arts, which can utilize AI across multiple titles. Conversely, companies with weaker franchises may struggle, facing increased competition as AI reduces costs for making mid-scale games. The report also discusses how AI could enhance revenue by keeping games engaging, encouraging spending on add-ons, in-game purchases, and subscriptions. Publishers may increasingly focus on enhancing existing franchises rather than relying solely on new game releases.

With information from Reuters

Source link

European airline Lufthansa cuts 20,000 flights to save money, fuel

April 21 (UPI) — European airline Lufthansa announced Tuesday that it will chop 20,000 “unprofitable” short-haul flights through October, a move the company says will save more than 40,000 metric tons of jet fuel.

The company, which is based in Germany, said fuel costs have doubled since the start of the conflict in Iran. This follows a move last week to retire the 27-plane fleet of its CityLine subsidiary ahead of schedule, Politico reported.

Lufthansa canceled the first 120 flights, which were to take place through the end of May, on Monday and said it had alerted affected passengers.The 20,000 cancelations include the former CityLine flights and affect the airline’s hubs in Frankfurt, Munich, Zurich, Vienna, Brussels and Rome.

“Passengers will therefore continue to have access to the global route network, particularly long-haul connections,” Lufthansa said in its announcement. “However, due to the increase in jet fuel prices, this will be achieved significantly more efficiently than before.”

The airline said that it will post the schedule “optimizations” from June onward in late April.

Politico reported that other airlines, including SAS Scandinavian Airlines and Air France- KLM, have turned to similar measures to deal with fuel costs.

Source link

Major airline cuts flights to and from UK as fuel crisis bites ahead of busy summer period

NINTCHDBPICT001068125239

RISING fuel costs linked to the war in Iran have forced a major airline to slash more than 100 flights – including services to and from London.

Dutch company KLM is axing 160 flights across Europe over the next month as soaring fuel prices pile pressure on the industry ahead of the busy summer period.

KLM is set to cancel more than 100 flights due to the fuel crisis sparked by the war in Iran Credit: Alamy
Flight cancellations are coming if the Strait of Hormuz remains closed Credit: Reuters

The cuts will hit routes in and out of Amsterdam’s Schiphol Airport, with departures and arrivals split evenly .

Despite the disruption, the airline insists there is no shortage of jet fuel, saying the move is purely down to spiralling costs.

A KLM spokesperson said: “Passengers affected by these changes will be rebooked onto the next available flight.

“As these are destinations KLM serves multiple times a day, such as London and Düsseldorf, travellers can usually be accommodated quickly.

MAJ-ESTIC

Play Majorca’s iconic golf course on budget-friendly 7-night break for under £600


HOLS HORROR

Jet2 holiday flight forced to make emergency landing after ‘smoke filled cabin’

“KLM expects a busy May holiday period and is making sure passengers can travel to their holiday destinations as planned.”

KLM’s flight cancellations comes after the head of the International Energy Agency Fatih Birol said mass flight cancellations will begin “soon” if the Strait of Hormuz remains closed.

“In the past there was a group called ‘Dire Straits.’ It’s a dire strait now, and it is going to have major implications for the global economy”, Birol told AP.

Adding: “And the longer it goes, the worse it will be for the economic growth and inflation around the world.”

Birol’s deadline means airports could face critical fuel shortages by May, causing travel chaos for Brits heading abroad during the school May half-term holidays.

Oil prices have soared since the start of March after Iran closed off the Strait in response to US-Israeli forces bombing.

The Persian Gulf chokehold sees around 40 per cent of the world’s jet fuel supply pass through.

It comes after ACI Europe, which represents European airports, said the key trade route must open within three weeks or fuel reserves will run drastically low on Friday.

A number of airports in Italy have already warned that they were running out of fuel.

According to local reports earlier this week, Brindisi-Casale Airport confirmed that Jet A1 fuel was not available for a short period of time.

And British Airways has announced it will permanently axe its service from London Heathrow to Jeddah in Saudi Arabia from April 24.

The airline had been operating a four flights a week service since November 2024.

But a shift in demand, due to the conflict in the Middle East, has led to the airline terminating the service.

KLM stressed the cancellations make up just one per cent of its European schedule.

But the move will still spark concern for Brits planning trips abroad as airlines battle rising operating costs.

It comes as carriers across Europe scramble to balance the books amid the fuel crisis.

Earlier this month, UK airline Skybus pulled the plug on all future flights between London Gatwick and Newquay.

The route, which launched in November 2025, had been backed by Cornwall Council and the Department for Transport under a public service scheme due to run until the end of May.

However, a slump in passenger numbers combined with higher fuel costs forced the airline to ground the service early, with its final flights taking off on April 2.

The latest cuts raise fresh fears of further disruption for holidaymakers as the peak summer season approaches.

Meanwhile other vital UK services could also face shortages if a deal to end the Middle East war is not struck soon.

Medicines UK, which represents companies making 85 per cent of NHS prescriptions, said NHS patients could face prescription shortages within weeks.

This could place “significant pressure for the NHS as early as June”, the organisation warned.

And Brits could even face shortages of supermarket staples such as beer and meat as officials fear the blockade of the Strait could cut vital carbon dioxide supplies.

CO2 is used in food packaging to improve the shelf life of salad, packaged meats and baked goods – and also slaughtering nearly all pigs and most chickens.

Tim Lang, professor of food policy at the University of London, who has been a member of several government bodies including the UK Council of Food Policy Advisors, told The Sun that the UK has “next to no food storage”.

The cuts will hit routes in and out of Amsterdam’s Schiphol Airport Credit: Alamy
The blockade of the Strait of Hormuz is holding up major supply chains Credit: AFP

Source link