gas price

Wildfire and insurance — issues amped by climate change — along with the price of gas, took center stage at the California governor’s debate on Tuesday night.

Here are some of the candidates’ defining statements, starting left of the stage:

Tony Thurmond

The Democratic State Superintendent of Public Instruction addressed the state’s wildfire insurance crisis, where private insurers have been dropping policies as climate changes fuels more frequent catastrophic fire. The state has allowed insurers to raise rates in return for writing more policies, but so far its backup FAIR Plan, meant to provide coverage when other companies will not, continues to grow.

Thurmond said he would withhold tax credits, subsidies and benefits from non-cooperative insurers, although moderators and other candidates raised questions about the legality of this strategy.

“The governor can certainly work with the Insurance Commissioner to say there should be no rate increase unless the insurance industry is actually writing policies. They have failed California in our greatest need. They’ve taken the money for premiums and then when people needed to have support to rebuild their homes, they said, ‘whoops, we’re not going to help you.’ Then they got a rate increase. I’m sorry, where I come from, when you do a bad job, you don’t get a raise.”

Chad Bianco

The Republican Riverside County Sheriff said insurers aren’t leaving California because of climate change, but because the state has failed to pass and enforce vegetation management and defensible space policies that would reduce wildfire risk.

“It wasn’t global warming, stop believing that. It was a failed environmental policy that doesn’t allow fire departments to prevent defensible space around our homes or clear out the brush for 30 years that are building in our mountains and in our hills that took out a city. [Insurers] specifically said we were going to lose a city, and our governor said ‘we don’t care.’ And so the insurance companies left.”

Inadequate brush clearance has contributed to other fires in the state, although it’s not a factor experts cite in the Los Angeles fires specifically.

Tom Steyer

The Democratic billionaire hedge fund founder who is positioning himself as the climate candidate in the race, touted his drive to make oil companies pay for damages from climate change, including rising insurance rates and homes lost to wildfires.

“In environmentalism, I have three real rules. Number one is polluter pays. It’s absolutely critical that if people are going to pollute and damage the environment and cause harm to their neighbors, they pay. Two, we have to include environmental justice in every single environmental rule. And third is we need to start to deploy all of the clean energy stuff that’s cheaper now and get us back to the front of the world in leading it.

“There is one person that the corporations are going after, including Big Oil, who is spending millions of dollars to stop me. The electric monopolies, PG&E, millions of dollars to stop me, because I’m the person on this stage who’s the change agent.”

Steve Hilton

The former Republican Fox News commentator said insurers should be allowed to raise rates consistent with actual wildfire risk. He also advocated for “modern forest management,” removing fuel from forests, as a way to protect against wildfires, reduce carbon emissions from fire, and revive the state’s timber industry.

“We can create jobs and opportunity in rural California and reduce carbon emissions in the process, because we won’t have the mega wildfires.”

Asked if he supports the transition to electrification, he promoted natural gas: “Yes, but let’s be sensible about electric. Right now, we have a fleet of gas fired power stations generating electricity that are running at 10 to 15% of their capacity, even though we have abundant natural gas in California that we could be using to generate affordable, reliable electricity that would lower the cost of electric bills for consumers and businesses.”

According to the U.S Energy Information Administration, California’s natural gas production provides less than one tenth of what the state consumes.

Xavier Becerra

The former Health and Human Services Secretary said he would call a state of emergency as governor to require wildfire insurers to freeze rates and come to the table.

“This affordability crisis is hitting every family, and we have to act as if this were a break glass moment … Rate payers have to understand what their risk is, so they understand why they are going to pay for what they’re going to pay for their home insurance. But an insurance company has to be open and transparent about how its pricing its policies so people can afford it.”

Moderator Julie Watts noted that California home insurance rates are below the national average and questioned the legality of a freeze.

Katie Porter

The former Democratic Orange County Congresswoman was asked whether California should keep its refineries. Two of them closed in the past year, reducing the state’s refining capacity by 20 percent and causing California to lean more heavily on imports.

She said the state should keep the remaining refineries open, but also rapidly scale up green energy to meet the state’s growing electricity demand: “Right now we need to keep all of our energy sources online. That’s just the reality that we’re in. … Right now those refineries, they’re up, they’re running, they’re creating good jobs. Let’s keep them there. But I want to be really clear … The people who work at those refineries, and the people who live in Kern County also face some of the worst pollution and lower life expectancies. Green energy gets us out of that.”

She also backed an idea to have state dollars cover insurance for insurers, known as reinsurance.

Matt Mahan

Democratic San Jose Mayor called to suspend the state’s 61 cent-per-gallon gas tax, used to fund road repairs, bridges, and public transport. The state is looking at a $216.4 billion revenue shortfall over the next decade due to increasing fuel economy and electric vehicles. The other Democratic candidates support keeping the tax; Mahan has instead proposed a flat fee on all vehicles.

He said: “I’m the only candidate on this stage who has pledged to suspend and then reform the gas tax. It is the most regressive tax in California. Working people, rural people, are spending three times as much maintaining our roads as wealthier EV owners.”

On the wildfire insurance crisis he said: “The government in Sacramento created so many restrictions, including taking over a year to approve any rate changes, prohibiting insurance companies from using climate data to project future costs, that they stopped writing new policies. The answer is bring them back, force them to compete, allow them to appropriately price risk, and then hold government accountable for maintaining our wildland, reducing all that vegetation and wildfire risk so that we don’t have these catastrophic fires.”

Antonio Villaraigosa

The former Democratic L.A. mayor expressed his concerns with the readiness of the state’s infrastructure to support a transition to electric vehicles.

“We need an all of the above strategy that understands we’ve got to transition from oil and gas to renewables. But here’s an example: the 2035 mandate [to ban gas-powered car sales]. We built 167,000 charging stations in the last 10 years. We need 2 million more to get to that mandate, and if we build them, we don’t have a grid. So we ought to build the grid instead of arguing about whether or not we need an all-of-the-above policy.”

WASHINGTON — President Trump had something urgent to address while flying back to Washington from his Mar-a-Lago estate on a recent Sunday.

It wasn’t the Iran war, nor the partial government shutdown over Department of Homeland Security funding. He was focused on a monumental issue of a different kind, hoisting artist renderings of the $400-million White House ballroom he’s building, complete with hand-carved “top-of-the-line” Corinthian columns.

“I’m so busy that I don’t have time to do this. I’m fighting wars and other things,” Trump said before extensively detailing plans for “the greatest ballroom anywhere in the world.”

His divided attention has become a Democratic point of attack and a concern for some Republicans who worry he’s not spending enough time on issues that voters care most about ahead of November’s midterm races.

The contrast was on full display Thursday, when, as Trump flew to Las Vegas to discuss tax cuts for Americans earning tips, his administration was pushing ahead with another of his splashy projects: Plans to build a 250-foot Triumphal Arch near the Lincoln Memorial replete with a Lady Liberty-like statue and a pair of golden eagles.

The president’s ability to speak to the concerns of working people has always seemed incongruous with his biography as a billionaire real estate developer. Yet his populist policies and emphasis on the economy during his 2024 campaign helped catapult him back to the White House.

Republican strategist Rick Tyler noted that, when Trump first ran for president in 2016, his wealth was a selling point.

“While other people, like Mitt Romney, played down how rich he was, Trump was giving free helicopter rides at the Iowa State Fair,” Tyler said. “People loved it.”

Still, Trump’s preoccupation with some of the gilded trappings of the presidency, as more Americans worry about bills, has drawn accusations that he’s a modern-day Marie Antoinette.

“ ‘Fighting wars’ and surging gas prices, yet Trump has time to brag about his billionaire backed ballroom,” Sen. Andy Kim (D-N.J.) responded on X to Trump’s Air Force One presentation.

Democratic California Gov. Gavin Newsom, a potential 2028 presidential hopeful, has been more direct in comparing Trump to the last queen before the French Revolution, who has come to embody extravagant opulence — even posting an AI-generated image of Trump’s face on her body on social media.

“TRUMP ‘MARIE ANTOINETTE’ SAYS, ‘NO HEALTH CARE FOR YOU PEASANTS, BUT A BALLROOM FOR THE QUEEN!’” Newsom wrote in October 2025, at the start of last fall’s 43-day government shutdown.

White House says Trump’s success benefits all Americans

Asked about opponents invoking Marie Antoinette, White House spokesman Davis Ingle said Trump “is going to go down in history as the most successful and consequential president in our lifetime.”

“His successes on behalf of the American people will be imprinted upon the fabric of America and will be felt by every other White House that comes after him,” Ingle said in a statement.

The president faced similar critiques during his first term. But lately he’s been unabashed about accusations he’s disconnected from Americans’ worries about high costs, which could leave Republicans with an uphill battle to retain control of Congress.

Republicans have been loath to question Trump, though notably there has been little criticism of a federal judge’s ruling that work on the project must stop until it has congressional approval. The GOP-controlled House and Senate also haven’t prioritized legislation to move the ballroom project forward.

“I’m not much into architecture,” Republican Sen. John Kennedy of Louisiana said last fall.

About two-thirds of Americans said Trump is “out of touch” with the concerns of most people in the United States today, according to an ABC News/Washington Post/Ipsos poll from February, though the same percentage said the same about the Democratic Party.

Presidents are usually removed from voters, separated by layers of security and surrounded by adoring subordinates. In her book “Why Presidents Fail and How They Can Succeed Again,” Elaine Kamarck argues that presidents get too focused on their own political narratives rather than the public’s concerns. Yet, when it comes to Trump, “All of this stuff is frankly unique to him.”

She pointed to the ballroom as well as Trump’s other White House renovations, soon adding his signature to paper currency and renaming the Kennedy Center after himself.

“It’s a reflection, I think, of his own background as a businessman and somebody who made his fortune selling his name,” said Kamarck, who worked in Bill Clinton’s White House.

While Trump focuses on the ballroom and other Washington projects, some public work projects in other parts of the country have languished.

Joe Meyer, the former mayor of Covington, Ky., spent years pushing for critical improvements to the Brent Spence Bridge connecting his town with Cincinnati, a project listed as a top federal priority dating back to Trump’s first administration.

Federal funds for improvements were approved under President Biden but held up by a Trump-ordered review. Work is finally set to begin later this year, though delays will likely limit design options and slow the project, Meyer said.

“The ballroom is Washington inside-baseball,” Meyer said. “The bridge is just a wreck. It’s frustration that we’ve been dealing with forever.”

A $100 tip and a golden tractor

Trumpeting new tax deductions for tips, Trump staged ordering McDonald’s to the Oval Office — which he has adorned with gold flourishes — and tipped the grandmother making the delivery $100. When she described large medical bills from her husband’s cancer treatments, Trump said she should bring him to an upcoming UFC fight on the White House lawn.

When hundreds of farmers were invited to the White House for an agricultural policy speech, they stood on the South Lawn beside a tractor that had been painted gold. It drizzled, but Trump stayed dry, addressing them from a covered second-floor balcony.

“You don’t mind rain,” the president told the farmers below.

He then flew to Miami for a conference of Saudi investors who, the president noted, were too rich to be impressed by U.S. families scrounging to save up $5,000.

“I know they’re looking like, ‘What the hell is $5,000?’ ” Trump joked. “Their shoes cost them more than $5,000.”

When asked in February, meanwhile, for his message to young people wanting to buy a home, Trump replied: “Save a little longer. Wait a little longer.”

Members of the Cabinet have also fed the perception that Trump’s promised “Golden Age” may not be arriving for everyone. Health Secretary Robert Kennedy Jr. advised Americans to buy liver instead of beef.

“If you go and buy a steak, it’s still pretty expensive. But if you buy the cheaper cuts, it’s great meat. And it is very, very affordable. Or liver, or, you know, all these alternatives,” he told podcast host Joe Rogan.

Agriculture Secretary Brooke Rollins said people could still afford meals consisting of “a piece of chicken, a piece of broccoli, corn tortilla and one other thing.”

Texas-based Republican consultant Brendan Steinhauser said he thinks that Trump “can kind of get away with” building a ballroom because voters have come to expect that from him as a brash dealmaker and businessman.

But Steinhauser said he worries that dramatic increases in gas prices and a potentially weakening economy could resonate with voters. Ahead of the midterms, Steinhauser said, Democrats could score points “trying to make it more about Trump and his oligarch friends.”

Price and Weissert write for the Associated Press. AP writers Linley Sanders in Washington and Ali Swenson in New York contributed to this report.

WASHINGTON — In his first formal address to the nation since launching a war on Iran more than a month ago, President Trump on Wednesday night repeated a familiar list of claimed successes — and brushed aside setbacks — while providing little clarity on a clear path to ending the conflict.

“We are going to finish the job, and we’re going to finish it very fast. We are getting very close,” the president said from the White House.

Trump said Iran is “no longer a threat,” yet spoke of potentially needing to escalate the conflict and increase bombings on Iran’s energy and oil infrastructure if it continues to fight back.

“If there is no deal, we are going to hit each and every one of their electric generating plants, very hard and probably simultaneously,” he said. “We have not hit their oil, even though that’s the easiest target of all, because it would not give them even a small chance of survival or rebuilding. But we could hit it, and it would be gone, and there’s not a thing they could do about it.”

Trump earlier this week said he expects to pull American forces from Iran within three weeks, and emphasized that the United States does not have to be in the Middle East but that it is only there to “help our allies.”

In his speech, Trump did not lay out a specific timeline for an exit strategy, but said the the U.S. is “on track to complete all of America’s military objectives shortly, very shortly.”

“We are going to hit them extremely hard over the next two to three weeks. We are going to bring them back to the Stone Ages, where they belong,” he said. “In the meantime, discussions are ongoing.”

He also repeated his assertions, made for weeks, that the U.S. has basically already defeated Iran and won the war, which he characterized as a “decisive, overwhelming victory.”

He also stressed that it is “very important that we keep this conflict in perspective,” before listing out — by month and day — the length of World War I, World War II, the Korean War, the Vietnam War and the Iraq War.

Prior to Wednesday night’s formal address, Trump had only spoken of the war — which U.S. and Israel launched against Iran on Feb. 28 — in less formal settings, during media gatherings and other public events.

The speech was a key messaging moment for the president, who, 33 days into the war, has struggled to clearly explain the scope and objectives of a conflict that has killed thousands of people in Iran and neighboring countries and disrupted global markets.

Trump repeatedly insisted that the U.S. is doing great, is “in great shape for the future,” and doesn’t need the oil that Iran has put a stranglehold on in the Strait of Hormuz, ignoring the clear effects of the war and those disruptions on the U.S., including on gas prices.

Those effects are already contributing to fractures within Trump’s base. Some have expressed frustration with the administration’s decision to enter a new conflict in the Middle East, concerns that could become a political liability for Republicans ahead of the high-stakes midterm elections in November.

In his remarks, Trump appeared to be speaking to those who have criticized him for deviating from his campaign promises by entering the war, saying he had promised to never allow Iran to have a nuclear weapon “from the very first day” he announced his first presidential campaign in 2015.

Trump has repeatedly downplayed the economic pressure the war has placed on Americans, including rising gas prices, arguing that the short-term financial strain is necessary for national security. He has also promised that gas prices will “come tumbling down” when the conflict ends.

“Gas prices will rapidly come back down,” Trump repeated on Wednesday. “Stock prices will rapidly go back up. They haven’t come down very much. Frankly, they came down a little bit, but they’ve had some very good days.”

Trump appeared less energetic during his evening speech than during some of his previous daytime events, where he has consistently maintained an upbeat tone about the war, while offering inconsistent accounts of what his administration aimed to achieve, or how long and what it would take to meet those objectives.

Those inconsistencies were evident even hours ahead of the address. In an interview with Reuters, he said he was not concerned about the enriched uranium held by Tehran — a statement that appeared to undercut a central justification for the war.

“That’s so far underground, I don’t care about that,” Trump said, adding that the U.S. military will be “watching it by satellite.”

In public remarks ahead of the address, Trump said the war was launched to prevent Iran from developing a nuclear weapon, but also that the U.S. had completely obliterated Iran’s nuclear capabilities months prior, in separate attacks over the summer. He also said he was worried about Iran’s enriched uranium, wanted the U.S. to take it, and would even consider sending U.S. forces inside Iran to collect it.

There have also been mixed messages about the U.S.’s intentions for Iran’s leadership since Iran’s Supreme Leader Ayatollah Ali Khamenei was killed at the start of the conflict, leaving a leadership vacuum that was filled by his son, Mojtaba Khamenei, a 56-year-old hard-line cleric who Trump initially called an “unacceptable choice.”

As Iran’s clerical rulers maintained a firm grip on the country, Trump administration officials, such as Secretary of State Marco Rubio, argued that U.S. war objectives had “nothing to do” with Iran’s leadership. But Trump in recent days has repeatedly talked about how “regime change” was achieved.

On Wednesday, Trump said a deal remained within reach with Iran’s new leaders, who he called “less radical and much more reasonable.”

Hours before Trump was to deliver his speech, Rubio posted a video which he began by saying, “Many Americans are asking, ‘Why did the United States have to attack Iran now?’” — an apparent acknowledgment that Trump’s own answers to that question in recent days may have failed to resonate.

Rubio also pushed another rationale for the war that the administration has floated on and off for the past month — saying Iran was building up an arsenal of missiles and drones to shield its nuclear ambitions, and that the war was the “last best chance” for the U.S. to eliminate those weapons capabilities before it was too late.

“We were on the verge of an Iran that had so many missiles and so many drones that nobody could do anything about their nuclear weapons program in the future,” Rubio said. “That was an intolerable risk.”

Others also tried to frame the war narrative Wednesday.

Prior to Trump’s speech, Iran President Masoud Pezeshkian issued a public letter denouncing what he described as “a flood of distortions and manufactured narratives” from the U.S., and arguing Iran is not a threat and has only ever defended itself against U.S. aggression.

He called on the American people to “look beyond the machinery of misinformation” from the Trump administration and reach their own conclusions about the war and its purpose, at one point echoing a question also being asked by some in Trump’s base: “Is ‘America First’ truly among the priorities of the U.S. government today?”

He noted Iran was in the midst of nuclear negotiations with the U.S. when the U.S. attacked it “as a proxy for Israel,” and accused U.S. leaders of committing a “war crime” by targeting Iran’s energy and industrial facilities.

“Exactly which of the American people’s interests are truly being served by this war?” he asked.

WASHINGTON — The U.S. economy was supposed to start the year with a bang, fueled by a jump in tax refunds from President Trump’s tax cut legislation. But soaring gas prices are on track to eat up those refunds, leaving most Americans with little extra to spend.

“Next spring is projected to be the largest tax refund season of all time,” Trump boasted in a prime-time speech in December intended to address voter concerns about the economy and stubbornly high prices, though exaggerating the anticipated refunds.

But that was before the Iran war, which the U.S. and Israel began on Feb. 28. Oil and gas prices have skyrocketed since then, with the nationwide average price of gas reaching $3.94 Sunday, up more than a dollar from a month earlier.

Gas prices are likely to remain elevated for some time, even if the war ends soon, because shipping and production have been disrupted and will take time to recover. Economists now expect slower growth this spring and for the year, as dollars that are spent on gas are less likely to be used for restaurants, new clothes or entertainment.

Lower- and middle-income households are likely to be hit particularly hard, because they receive smaller refunds and spend a greater proportion of their earnings on gas.

“The energy shock is to going to hit those who have the least cushion,” said Alex Jacquez, chief of policy at the left-leaning Groundwork Collaborative and a former economist in the Biden White House. “And it doesn’t look like those tax refunds are going to be here to save them.”

Neale Mahoney, director of the Stanford Institute for Economic Policy Research, calculates that gas prices could peak in May at $4.36 a gallon, based on oil price forecasts by Goldman Sachs, followed by slow declines for the rest of the year. The notion that gas prices decline much more slowly than they rise is so ingrained among economists that they refer to it as the “rocket and feathers” phenomenon — rising like a rocket before falling like a feather.

In that scenario, the average household would pay $740 more in gas this year, nearly equal to the $748 increase in refunds that the Tax Foundation has estimated the average household will receive.

Through March 6, refunds have risen by much less than that, according to Internal Revenue Service data: They have averaged $3,676, up $352 from $3,324 in 2025. Still, average refunds could rise as more complex returns are filed.

Other estimates show similar impacts. Economists at Oxford Economics, a consulting firm, estimate that if gas prices average $3.70 a gallon all year, it will cost consumers about $70 billion — more than the $60 billion in increased tax refunds.

The gas price spike comes with many consumers already in a precarious position, particularly compared with 2022, when gas prices also soared because of Russia’s invasion of Ukraine. At that time, many households still had fattened bank accounts from COVID-19 pandemic-era stimulus payments and companies were hiring rapidly and sharply lifting pay to attract workers.

Now, hiring is nearly at a standstill and Americans’ saving rate has steadily fallen in the last few years as many households borrow more to sustain their spending.

“When you start looking across the perspective from a consumer side, you’re seeing people who have maxed out their credit cards, are using ‘buy now, pay later’ to purchase their groceries,” said Julie Margetta Morgan, president of the Century Foundation think tank. “They’re making it work for now, but that can fall apart quite quickly.”

The consequences are likely to worsen the “K-shaped” phenomenon in the U.S. economy, analysts said, in which higher-income households have fared better than lower-income households. The bottom 10% of earners spend nearly 4% of their incomes on gasoline, Pantheon Macroeconomics estimates, while the top 10% spend just 1.5%. The Trump tax breaks also benefited the wealthiest taxpayers most.

For now, most analysts still expect the U.S. economy to expand this year, even if more slowly, given the gas price shock. Higher gas prices will probably worsen inflation in the short run, and over time weaker spending will also slow growth.

American consumers and businesses have repeatedly shaken off shocks since the pandemic emergency — soaring inflation, rising interest rates, Trump’s tariffs — and continued to spend, defying concerns that the economy would tip into recession. Many economists note that the proportion of their incomes that Americans spend on gas and other energy has fallen significantly compared with a decade ago.

Data from the Bank of America Institute released Friday showed that spending on gas on the bank’s credit and debit cards shot 14.4% higher in the week ended March 14 compared with a year ago. Before the war, such spending was running 5% below the previous year, a benefit to consumers.

Spending on discretionary items — restaurants, electronics and travel — is still growing, the institute said, evidence of consumer resilience. But there is little sign it is accelerating, as many economists had hoped.

“The longer these gasoline prices persist, the more that will gradually sap consumer discretionary spending,” said David Tinsley, senior economist at the institute.

Other analysts expect growth will slow because of the war. Bernard Yaros and Michael Pearce, economists at Oxford Economics, forecast that the U.S. economy will grow just 1.9% this year, down from an earlier estimate of 2.5%.

“We had anticipated a lift in spending from a bumper tax refund season,” they wrote, “but the rise in gasoline prices, if sustained, would more than offset that boost.”

Rugaber writes for the Associated Press.