Landmark

Gov. Gavin Newsom signed a landmark bill that would give a financial boost to California’s struggling newsrooms.

Assembly Bill 2222 will create refundable tax credits for California local news organizations based on the number of journalists they employ. It passed through both houses. It marks an innovative yet controversial attempt to slow the decline of local journalism.

The bill, called the Community Newsroom Employment and Workforce Sustainability Act, works by assigning a “job retention credit” of $20,000 per journalist for up to five positions, and after that $15,000 for every additional journalist. Part-time positions will be awarded half-credits. It also stacks an additional $15,000 credit for each new hire, to incentivize expanding journalist head counts.

Before signing the bill Wednesday morning, Newsom spoke about what he called the “assault on the free press and the First Amendment..coming from Washington D.C. and Donald Trump.”

“It’s journalists that need to report those stories and local journalists that need to uncover and sort of peel back the facade if democracy is going to survive, let alone thrive,” Newsom said.

The bill was supported by the California News Publishers Assn., of which the Los Angeles Times is a member and a wide range of other community news boosters. Backers said it could be a lifeline to local news organizations, many of which have struggled to maintain staffing levels over the past two decades.

California has lost more than 12,000 of its local journalists since 2002, according to nonprofit advocacy group Rebuild Local News. And almost 40% of all local U.S. newspapers have vanished, according to an annual report on the state of local news put out by Northwestern University’s Medill journalism school.

To pay for the credits, the bill would amend California’s tax code to align with a little-discussed component of President Trump’s “Big Beautiful” tax bill that expanded taxes on some companies by eliminating a deduction for executive salaries of over $1 million annually.

It is common practice for the state to consider aligning its tax code with the federal structure to make filing taxes easier and administering them more cheaply. But California has not yet sought to adopt this federal tax change, a move which would increase tax revenues to the state.

The California Taxpayers Assn. and groups representing business interests such as the California Chamber of Commerce oppose the bill because it raises taxes on employers that they argue already face billions of dollars in new taxes.

They contend that the higher costs will be passed along to consumers.

The governor’s finance office issued an analysis opposing the bill for not including a cap on the tax credits, thus creating “unlimited fiscal liability to the state,” and argued the bill mainly subsidizes existing activity rather than encouraging the creation of new jobs.

While speaking with reporters on Wednesday, Newsom acknowledged some of the concerns that have been raised about those who will receive benefits from the bill’s funds, specifically hedge funds and billionaire owners and outlets who he says spread propaganda.

“It does subsidize those that don’t need to be subsidized,” he said. “We have hedge funds in this space. We have billionaires in this space. We have people that are profiteering in this space by gutting the newsrooms and extracting value out of the space that also are the beneficiaries.”

Newsom said he chose not to veto the bill because he believes its benefits outweigh the liabilities. He added that he hopes the legislature and next governor can work to narrow down who benefits most from the legislation.

“We should not be subsidizing hedge funds,” he said. “We should be focused on where the need is the greatest, in my humble opinion, and I do think when you have no cap, the limitlessness of this…to some of the most well-heeled organizations, where now they simply could pull from this bill the benefits that they didn’t even ask for or need, is self-evident.”

Assemblymember Chris Ward (D-San Diego), who authored the bill, said the governor’s signature shows California’s commitment to the free press at a time when newsrooms are shrinking and misinformation is rampant.

“Local journalism is the backbone of an informed democracy, and today California made clear that the people doing this essential work are worth investing in,” Ward said in a statement. “This historic investment will help keep reporters in our communities, strengthen nonprofit and public media, and ensure Californians continue to have access to trusted, fact-based local news.”

In signing the bill, Newsom emphasized the role of journalism in uncovering scandal and wrongdoing.

“The L.A. Times to their credit did a big investigative piece on Bell, and people getting paid a million dollars in some cases, local government officials, a million damn dollars a year. No one would have known had it not been for local journalism. How many more Bells are out there, not just in this state, but all across the country?”

Crypto markets dropped late on Tuesday and early Wednesday, as investors digested a defeat that few in the industry had expected.

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The procedural motion on the CLARITY Act drew 49 votes in favour and 50 against, 11 short of the 60 required to advance, dealing a major setback to efforts to pass market structure legislation this year.

The CLARITY Act, formally the Digital Asset Market Clarity Act, was meant to divide supervision of digital assets between the US Commodity Futures Trading Commission and the Securities and Exchange Commission, replacing a fragmented system in which classification has largely been settled through enforcement actions and litigation.

Bitcoin fell almost 34 over the past 24 hours to below $76,000, while HYPE, the token behind the decentralised exchange Hyperliquid, which stood to benefit from the legislation, also dropped about 4% to below $78.

Most major tokens fell alongside them.

A deal that still was not enough

The bill’s defeat is striking because so much had been conceded.

US President Donald Trump agreed over the weekend to ethics restrictions he had long resisted, including a requirement that federal officials and their spouses divest significant financial interests in crypto issuers or place them in a blind trust, and a role for state attorneys general in enforcing those rules.

Republican negotiators said that over 120 Democratic requests were written into the final text of the more than 600-page bill, representing a major bipartisan effort.

Still, it was not enough.

Four Republicans, Jerry Moran, Susan Collins, Josh Hawley and Thom Tillis, joined the 45 Democrats who voted against it. The Democratic Senator Chris Coons did not vote.

Democratic Senator Elizabeth Warren, the bill’s most prominent opponent, said it “fails to adequately protect investors, our financial system and our national security,” and attacked Trump’s crypto ventures on the US Senate floor hours before the vote.

Republican Senator Thom Tillis’s vote was a procedural exception. After having publicly backing the ethics package that morning, Tillis voted no to preserve a motion to reconsider, leaving open the possibility of another cloture vote.

Senator Cynthia Lummis, the Wyoming Republican who has led crypto legislation in the US Senate since co-authoring the Responsible Financial Innovation Act in 2022, was blunt afterwards.

“I think we’re done. It’s over,” she told reporters before going considerably further online.

“The once-proud Democratic Party is anti-consumer and pro-illicit finance, anti-ethics, anti-free enterprise, anti-worker, anti-livable wage jobs and pro-socialism,” she wrote in a social media post.

The failed vote likely means the crypto industry will have to wait until next year for clearer rules to be discussed.

The US midterm elections are in just seven weeks which complicates bringing the bill back up for consideration in the short term.

Senators are scheduled to leave Washington in early October and not return until after the election and the House recesses even earlier, heading out of town already at the end of this week.

Members, especially those in tight races, are eager to return to their home states and hit the campaign trail.

Regulators inherit the problem

The legislation’s failure does not mean nothing happens. It means the rules are more likely to be written by agencies instead.

The US Securities and Exchange Commission under Paul Atkins and the US Commodity Futures Trading Commission under Michael Selig have already been building a framework without Congress.

The two signed a cooperation agreement in March and issued a joint interpretation sorting tokens into five categories, with Atkins stating that most crypto assets are not, in themselves, securities.

The SEC’s own agenda includes registration exemptions for token launches, a safe harbour for projects decentralising away from central control, and rules on custody and trading venues.

Analysts expect that work to accelerate now.

However, the catch is durability, because agency rules can be rewritten by a future US administration, which is precisely the instability the CLARITY Act was meant to end.

YOU’ll soon be able to enjoy a tipple in one of the capital’s grandest landmarks that was once home to Winston Churchill and is thought to have sparked the creation of 007.

Admiralty Arch will soon be home to a huge new bar called The Admiral’s Mess.

And what makes it even more exciting is that it will be an ‘immersive’ bar.

While few details have been revealed, the bar is from the team behind Mr Fogg’s and Bunga90, which are both known for their fun interiors and entertainment including arcade games.

The bar will open at The Waldorf Astoria London Admiralty Arch hotel, which is set to launch in autumn of this year.

It will be the first hotel inside the Grade I-listed Arch.

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The Admiral’s Mess will span 223sqm and have a 60-seat capacity.

All that has been revealed about the bar so far is that guests will be able to “discover something distinctive and unexpected”, according to the Inception Group (the team behind the new bar).

If other Inception Group venues are anything to go by, visitors can expect a bar that is more than a place for drinks.

For example, Inception Group has Cahoots in Soho which is themed around the London Underground.

At Bunga90, another of the company’s destinations, guests travel back to the 1990s through a fridge, where they can play on old arcade games, sing karaoke and order cocktails in cups that are the heads of famous 90s stars including Britney.

Meanwhile, inside The Waldorf Astoria London Admiralty Arch hotel, there will be restaurant Coreus by Michelin-star chef Clare Smyth.

And another Michelin-star chef, Daniel Boulud, will open Cafe Boulud.

Of course, there will be an expansive rooftop terrace as well, with views across the capital.

As for bars, there will be the signature hotel cocktail bar as well as Whisky & Seaweed by Clare Smyth.

As for the bedrooms, each will honour the heritage of the building with sleek interiors.

Guests will also be able to head to the Waldorf Astoria Spa with a sauna, steam room and hydrotherapy pool.

And it wouldn’t be a lavish London hotel without a ballroom, which guests will be able to reach via a Grade I-listed oval staircase.

The ballroom will feature a huge chandelier and enough room for 500 guests.

Admiralty Arch was commissioned by King Edward VII as a memorial to his mother, Queen Victoria and was completed back in 1912.

It has previously been used as offices and residences for the British Royal Navy and at one point, Winston Churchill and Lord Mountbatten had offices or lived within the building.

The building is also said to have inspired Ian Fleming’s James Bond stories.

The UK government left the offices in the building back in 2011 and since then it has been left empty.

Works for the hotel then started at the site back in 2014.